The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-03-27


possible the silver bullion held in the
Treasury, purchased under The act of
July IA, 1890, entitled can act directing
the purchase of silver bullion and the
issue of Treasury notes thereon, and
for other purposes to the amount of the
gain or the seigniorage of such bullion,
to-wit, the sum of $55, 156,631, and such
coin, or the silver certificates issued
thereon, shall be used in the payment
of public expenditures and The Secre-
tary of the Treasury may, in his dis
erection, if the needs of the Treasury
demand it, isue silver certificates in eX-
cess of such coinage, provided that
such excess shall not exceed the amount
of the seigniorage as herein authorized
to be coined.''' The Chamber rests in
calm confidence that this bill will not
receive your signature, because on it's
face it misrepresents the actual facts
in regard to the silver now in the Treas
ury purchased under the act of July IA,
1890.
90 There is no 'seigni5rage' in the
Treasury upon the silver bullion thus
purchased. The term seigniorage means
the charge made against the owners
Of bullion voluntarily bringing the same
TO the minis to be coined. Under eX-
listing law all silver in the Treasury
has been purchased by the government,
and none of it has, therefore, been sub
ject to any charge of seigniorage.
go Neither has there been any
gain upon the amount of silver pur-
chased under the said act, but, on the
contrary, there has been very heavy
loss. The bullion purchased under the
act of 1890 has cost the government an
average of 92.44 cents per ounce. and
Treasury notes are now outstanding to
the amount of $152, 1928 2S0, representing
all the bullion now in the Treasury and
IN, ct TO
market value of silver in this city is
591a cents per ounce, showing loss on
every ounce so purchased, and for
which the obIiga tons of the govern
ment are now outstanding, of 1924
cents per ounce. Instead, therefore, of
there being gain of $50. 1876 6S1, there
is an actual loss of SAG, 346, 500.
upon this loss the bill proposes to
authorize the issue of further silver
certificates to the extent Of $55, 1856 6S1;
in other words, the actual loss would
thus be canitalzed by an additional
issue of obligations, the effect Of
Ml4-n will De 20 diminish the security,
already Inadequate for the redemption
of the treasury notes now outstanding.
In comparison with this operation, the
issue Of fiat money becomes respect
able, because that at least rests upon
the faith of the nation. The proposed
new issue is based upon the violation
of the faith of the nation, in so far
as it dilutes the security which was
pledged under the act of 1890 FOR the
redemption of the treasury notes is
sued hereunder.
eff national bank should thus by
false entries attempt to convert it's
losses into assets, and issue obliga-
tons thereon, it's officers would be
guilty of a crime and under the law
would be liable to fine and imprison-
ment. If private firm were thus to
falsify its books, its members would
commit fraud, and in case of bank
ruptcy would suffer the penalties pre-
scribed by law for the punishment of
fraudulent debtors. The Chamber re-
spectfully submits that, while an act
OF Congress might grant immunity, no
legislation could possibly 'hange the
moral aspect of such transactions.
Moreover under the act which re-
pealed the purchasing clause of the
act OF July II, 1890, the faith of the
Government was practically pledged
TO the maintenance upon the gold
standard of all existing Treasury
notes, certificates, and currency issued
| IN accordance with the law The sill
yer coin and bullion now in the Treas
ury, represented either by silver Ger
tlf1cates or by Treasury notes amounts
| to 1892 96,937, in addition to silver dol
] -
S93,5lo, upon which there has neen a.
0epreclation in market value of S193.-
zoo,0OO. The Chamber respectfully re-
presents that this deficiency. which is
now practically guaranteed by law TO
De made good in gold. creates an en-
parfaSment to the public finances of
great dlfncuity, involving The gravest
manship would seem to be to take
every possible step toward the in
crease OF the resources and of the re-
serves necessary to preserve the
pllghted faith of the Government in
reference to the redemption of its ahIi-
gatlons in gold. The bill now pending.
peIore you Weakens the security under
~, NJ conl5o! OF the Treasury Depart
inent' ana is calculated to DESTROY con-
lldence in the ability of The Govern
nent TO maintain the currency upon
gold basis. The lack of confidence
winch was produced by the prospects
oL continued purchases of silver under
me sherman act brought on a none
eary crisis of such severity as to
apneau general dismay throughout the
country, to curtail greatly the opera-
IONS OF business, and to compel even
me strongest banks to resort to tenn
porafy eXpedients not contemplated nv
-aW,, IN order that their customers
might not be utterly ruined.
from such condition is
necessarily slow. Reviving confidence
should De encouraged and not arrested
py the action of the government IF
the bill pending before you shou1d ba-
come law, the return of stable con
olllohs VIII be greatly impeded and
IN the interval of doubt and desnon~
oency all classes in the communitv
VIII continue to suffer the distress of
the existing depression.
me chamber refrains from COM
nienung upon the ambiguous language
OF the Dill as to the amount of tbe
treasury certificates which NAV he is-
sued under its provisions, because II
| is fully aware that these provisions
VIII receive the careful scrutiny to
which measures Of such vast imnort1
ance are entitled at your hands b,1t
the chamber can not close it's conrnII-
lncatlon without calling your attention
TO the fact that the approval of this
Dill Will necessarily lead to further lie.
sues or bonds in order to maintain in
the treasury a reserve of gold suffi-
| Gent to comply with the obligations of
the government to keep all the money
OF the people on a level of equal yaIue.
because unless the supply of gold in
the treasury is replenished by such
loans, involving increased burdens of
taxation, the level of equal value must
necessarily be lowered to the silver
standard
"One such loan has already been made
and others must follow, unless. in ac-
cordance with the precedence of your
official record, rewarded by the we'll
earned confidence of your fellow citi-
zens, you interpoSe the stern rebuke of
| the executive veto upon this deliberate
effort to initiate the currency, reversing
the established policy of the govern.
ment since the resumption of specie