The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1894-03-30
AS WE ALL EXPECTED
President Cleveland Knocks The Bland
Bill on lha Head.
HIS REASONS IN EXTENSO
The Coinage of the Seigniorage
he Thinks Would Involve
the Country In Dire and
Awful Disaster.

sent to the house the following message
rctoing the Band silver seiguiorage bill:
To The House Of Representatives..
return without my approval house bill
No. i,5o6, eatitled, IAN act directing the
coinage Jf the silver bullion held IN the
treasury and for other purposes My
s'rIng desire 70 avoid disagreement
with those of both houses Of congress who
have supported this bill would lead mo TO
approve it il could believe the public
good would not be thereby endangered
and that such action on my part would be
proper discharge of official duty. Inas-
much. however, as am unable TO satisfy
myself that the proposed legislation is
either wise or opportune, my conception
OF tho obligations and responsibilities al.
tached 10 the great Office hold forbiGs
the indulgence of my personal desire and
inexorably confines me to that course
which is dictated by my reason and judg-
ment and pointed out by a sincere pur-
pose 10 protect and promote the general
interests of the people.
The financial disturbance which swept
over the country during last year was ur-
parallelel In its severity and disastrous
consequences. There seemed to be an
almost entire displacement of faith in our
financial ability and loss of confidence in
our fiscal policy. Among those who at
tempted 10 assign causes for our distress
1t was very generally conceded that the
operation OF the provision of the law then
IN force which required the governmental
purchase monthly large amount OF sill
ver bullion and issue its notes in payment
therefor was either entirely or 10 n large
extent responsible for our condition. This
led TO the repeal on the first day of Noyem-
Der, 1873, of this statutory provision. We
had, however. fallen SO low in the depths
of depression and tinidity and appre.
hension had SO completely gained con-
troll in financial circles that our rapid re-
euperation could not bc reasonably eN-
pected. Our recovery has, nevertheless.
steadily progressed, and though less than
fvc months have elapsed since the repeal
OF the mischievous silver purchase act "A
wholesome Improvement is Enthusiastically
apparent, confidence in our absolute SOL
vency is 10 such an extent reinstated and
| financial methods is 30 far restored as to
! produce most encouraging results. both Al
home and abroad. The wheels of domes-
tie industry have been slowly set in mo-
| ton and tho tide of foreign investment
has again started in our direction.
Our recovery heing so well under way
nothing should be done 10 check our
convalescence; nor should we forget that
| a relapse at this time would almost surely
reduce us to a lower stage of financial dis
tress than that from which We are just
emerging. believe that If the bill under
| consideration should become a law it
would be regarded as a retrogresson from
the financial intentions INDUCED by our
recent repeal of the provision forcing sill
yer bullion purchases that would weaken,
il it did not destroy, returning faith and
confidence in our sound financial tend
| encies. and that in consequence our pro-
grcss TO renewed business health would
be unfortunately checked and return to
our recent distressing plight be seriously
| threatened.
This proposed legislation is SO related to
currency conditions growing out of the
law compelling the purchase Of silver by
the government. that glance at such
conditions and a partial review oefhe law
referred 10 may not be Improbable. Be-
tween the l4th day Of August, 1880, when
| the law became operative, and the lst day
| of November, 1899, when the clause it con-
tained directing the purchase of silver
| was repealed, there we're purcha by the
secretary of the treasury more than 49,
| WO.OJJ ounces OF silver bullion.
| In payment for this bullion, the govern
! ment issued treasury notes of various ,lc-
! nominations amounting TO nearly Sl5G,-
| UgJ,UyD, which notes were Immediately
added TO the currency in circulation
among our people. such notes were
by law made legal tender in pay
mcut of all debts. public and private,
| except when otherwise expressly siipu-
lated and we're made receivable for Gus
toms. taxes and all public dues, and when
so received might be reissued.
They were also permitted TO be held by
| banking associations as part Of their law.
| !ul reserve. On demand of the holders
| these treasury notes were 30 be redeemed
| in gold or silver coin in the discretion OF
| the secretary of the treasury; but it was
| declared as part of this redemption pro.
| vision that il was the established policy of
| the United States TO maintain the two
metals on parity with each other upon
the present legal ratio or such n ratio as
may be provided by law; tho money
coined from such bullion TO be standard
silver dollars; and alter directing tho i'm.
mediate coinage of little less than 49,
10000 ounces, the law provided that as
much of the remaining bullion should be
thereafter coined as might be necessary
| 10 provide for the redemption OF
| the treasury notes issued on its purchase
and that "any gain or seignorage
arising from such coinage shall be
accounted for and paid into the treasury
THIS gain or seigniorage evidently indi.
Gates so much OF the bullion owned by the
government as remains after using n
sufficient amount TO coin as many stand
ard silver dollars as should equal in mum.
ber the dollars represented by treasury
notes issued in payment Of the entire
quantity OF bullion. These treasury notes
now outstanding and in circulation
amount to Slh2. .9il. 80. and although there
thus far has been bui a comparatively
small amount of this bullion coined. yet
the so-called gain or seigniorage, as above
| .t.n.zl ,,.h,ch ,,.oull nrisa from, tbo c,ip,