The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-03-30

/ yer dollars as equal III
dollars represented by treasury notes
issued in payment of the entire bull
| lion. These treasury notes now out
standing and in circulation amount
| to $152, 9o1, $50, and although there has,
| thus far, been but a comparatively
small amount of this bullion coined,
| yet the so-called gain, or seigniorage,
as above defined, which would arise
from the coinage of the entire mass,
has been easily ascertained to be the
quantity of bullion sufficient to make,
when coined, 55,156,6S1 standard silver
dollars.
Considering the present intrinsic re-
lation between gold and silver the
maintenance of the party between the
two metals, as mentioned in this law,
can mean nothing less than the main
| tenance of such a parity in the eStl-
nation and confidence of the people
who use our money in daily transac-
tons.
maintenance of Parity.
Manifestly the maintenance of this
parity can only be accomplished so
far as it is affected by these treasury
notes, and in the estimation Of holders
Of the same, by giving such holders, on
| their redemption coin, whether gold or
lsilver-which they prefer. 1t follows
while in the terms of the law leaves the
choice of coin to be paid on such re-
demption to the discretion of the secre-
tdry of the treasury, the exercise of
this discretion, if opposed to the de-
mands Of the holder, is entirely incon-
sistent with the effective beneficial
maintenance of the parity between the
two metals. If both gold and silver
are to serve as money, and if they to-
gether are to supply to our people a
safe, stable currency, the necessity Of
preserving this parity is obvious. Such
a necessity has been repeatedly con-
ceded in the platforms of both political
parties, and in our federal statutes. 1t
is now here more emphatically recog-
nized than in the recent law which re-
Ipealed the provision under which the
bullion now on hand was purchased.
This law insists upon the maintenance
OF the parity in value of the coins of
the two metals, and the equal power of
every dollar at all times in the markets
and in the payment of debts.
The secretary of the treasury has,
therefore, for the best of reasons, not
only complied with every demand for
the redemption of these treasury notes
in gold, but the present situation, as
we'll as the letter and spirit of the law,
appear plainly to justify, If they do
not enjoin upon him, the continuation
of such redemption. The conditions
have endeaYored to present may be
thus summarized:
First-The government has purchased
and now has on hand sufficient silver
bullion to permit the coinage of all sill
yer dollars necessary to redeem in
such dollars the treasury notes issued
. for the purpose, and enough besides to
coin, as a gain or seigniorage, $50, 156,
.6S1 additional standard silver dollars.
Second-There are outstanding and
now in circulation treasury notes is
sued in the payment of bullion pur-
chased amounting to 49,, 1851, $50. These
notes are legal tender in the payment
! of all debts, public and private. Elk
: cept when otherwise expressly StlpuIat-
ed. they are receivable for customs
taxes and all public debts. When held
by banking associations, they may be
. counted as part of their lawful reserve
and are redeemed by the government
, in gold at the option of the holders
:, These advantageous attributes were de-
liberia tely attached to these notes at the
. time they were issued; they are fully
understood by our people, to whom
such notes have been distributed as
currency, and have inspired confidence
lin their safety and value, and have un-
) ldoubtedly thus induced their continued
: and constant use as money, instead OF
/ anxiety for their redemption.
t Specific Statement of Objections.
Having referred to some incidents
which | deem relevant to the subject
it remains for me to submit specific
statement of my objections to the BIZ
now under consideration.
The bill consists of two sections, eX'
GLIDING one which merely Gppfoprlates
, a sum sufficient to carry the act into
= effect The first section provides fol
! the immediate coinage OF silver bullion
: in the treasury which represents the
= co-called gain or Seigniorage Whlcf
would arise frcm coming all The bull
: lion on hand, which gain or seignior
age this section declares to be $50, 1856
6Sl It directs that the money Sc
! coined, or SIZE certificates issued there
on. shall be used in the payment o.
public expenditures, and provides tha
! it, the secretary of the treasury may
! in his discretion, issue silver certifi
1 Gates in excess of such coinage net eX
> ceeding the amount of seigniorage tt
be coined. The second section direct:
: that as soon as possible after the coin
{ age of this seigniorage the remaindel
u of the bullion held by the government
U shall be coined into legal tender stand
{ ard dollars and that they shall be helC
u in the treasury for the redemption o
t the treasury notes issued in purchase
d of said bullion. It provides that a.
fast as the bullion shall be coined fo
j the redemption of said notes, the.
n shall not be reissued, but shall b.
: cancelled and destroyed in amount
e equal to the coin held at any time il
: the treasury derived from the coinag,
: provided for, and that silver certifi
d Gates shall be issued on such coin il
: the manner now provided by aW.
d is, however, especially declared in sait
: section that the act shall not be con
d strued to change the existing laws re
: lating to the legal tender character O.
L mode of redemption of the treasur,
l. notes issued for the purchase of tn
silver bullion to be coined. The en-
a tire bill is most unfortunately con
y structed. Nearly every sentence pre-
= sents uncertainty and invites ccntro
= versy as to its meaning and intent
;. The first section is especially faulty il
' this respect and it is extremely doubt
full whether its language will permi
the contamination of its supposed pur
:; poses.
q 1 am led to believe the promoters O
u the bill intended in this section to pro
: vide for the coinage of bullion cDnsti
< tuting the gain, or seigniora5e, as i
{ is called, into standard silver dollars
; and yet there is positively nothing il
I the section to prevent its coinage int
d any description of silver "oins low au
!, thorized under any existing law.
:, suppose this section also intended il
q case the demands of the treasur
g called for money faster than the seig
I, niorage bu-Rjn could actually b
II coined, TO permit the issue of silve
. certificates in advance of such coinage
d but its language would seem to permi
: the issuance of such certificates t
o double the amount of the seigniorag
as stated, one half of which woul,
q mot represent an ounce of silver in tn
II treasury. The debate upon this section
II in Congress developed an earnest an
e positive difference of opinion IS to il