Evening star. [volume] (Washington, D.C.) 1854-1972, 1894-03-09
NOT QUITE so EASY
A Hitch Met in the Quick Passage of the
Bland Bill.
MI. Sherman's Speech on the Questiop
-suii Discussing the Narrow
Escape on Wednesday.


the Senate on the seigniorage bill yesterday
afternoon, and the prediction OF Senator
Harris that the bill could be finally ,iisnosa5
of in thirty minutes was not verified. Thee
speeches of considerable length were deliv-
cred against the main question of the mass
age of the bill, and there was so much cross
firing about the matter of the speed with
which the bill had been sent to its third
reading on Wednesday that the entire af-
terroon was taken up with talk and the
Senate adjourned near o'clock, with Sen
ator Allison's motion to reconsider the vote
by which the bill had been passed to a third
reading still pending. Senators Villas and
Allison have given notice of speeches. and
then the bill will probably be put on its
passage, though the opponents to the meas
ure seem TO be gaining courage with each
day Of delay and are preparing themselves
for a longer fight than was first thought
possible after the bill had been put SO far
ahead in its progress.
Mr.. Sherman's Talk.
Mr.. Sherman talked for upward OF an
hour yesterday afternoon. He said the prop
osition was a violation of the public faith
as declared in the act of 1890, which pied yed
to the redemption of the silver certificates
the entire silver bullion purchased by them
He believed, also, that it was the beginning
OF an unlimited issue of paper money TO
meet current expenditures, and that IL would
substitute Tor the bimetallic standard OF
gold and silver the recommendation of silver
only. Congress was already threatened with
the question of the free coinage of silver
The act of 1880, he said, meant clearly that
the silver bullion purchased under 1t should
be coined into dollars as needed TO red eem
the silver certificates. There was in the
treasury, in 1880, $50 1000 600 silver dollars
and 1t had been felt by every one that the
coinage Of the silver bullion should not be
Tnr inn Fnars ha~
vision had been inserted in the law of 1890
that, after one year. the coinage OF silver
dollars should only go forward at the dis
erection of the Secretary of the Treasury,
ana only as needed for the redemption of
treasury notes. That clearly showed, Mr.
Sherman said, that the silver bullion in the
treasury, resulting from its purchase under
the act of 1890. was intended TO remain there
In mass and was not to be coined except as
absolutely necessary to redeem treasury
notes. In other words, the treasury notes
were based on the silver bullion purchased,
at its cost value. The act of 1880 had pro-
vided that the silver bullion resulting from
II should remain in the treasury as the Sc
curity OF the treasury notes issued for its
purchase. Nothing could be more clear.
This seigniorage did not arise" he con-
tinued. until after this bullion was coined,
and therefore this provision about the gain
or seigniorage did not operate or come into
existence. according to the decision Of two
secretaries of the treasury-one democratic
and the other republican.
THE bill before US, strange to say, pro-
vides for taking $55,0O0,0 600 OF the bullion
thus pledged to the redemption of the treas
ury notes. 1t takes IT from the vaults OF
the Treasury Department, where IL is
pledged as sacredly as a mortgage upon land
or as any other obligation of public faith.
And what does IL propose to do with this
$55,O00,0OO? Not to redeem treasury notes.
Not to maintain the parity between treas
ury notes and gold. But this SIS 600 is to
be taken. In plain violation of the law OF
In afns -fn1a ~
public faith in plain violation of the contract
between citizens of the United States and
the United States at large. i say that this
is breach Of public faith. which ought to
stamp this measure in the condemnation OF
every man who has any regard for the OBJ
legations of contracts"
AIR. Henderson called the attention of the
Senate to the fact that under the language
of the seigniorage bill mot only might S.
100000 Of silver dollars be coined. but an
additional ,$,5.o00.000 Of treasury notes
might be issued
Mr.. Sherman said II seemed to him that
the suggestion OF Mr.. Henderson was clear
and unQuestionable. 1t was perfectly clear
that the $55,000.00O could be doubled. Il .he
excess of the first s55, o00,O0 was demanded
by the needs of the treasury. The proposed
issue of S55On,0Oo OF paper money was
based on money stolen from the fund
pledged to redeem treasury notes. without
such a thing. he would be willing to bor-
row money, at any rate of interest, rather
than endanCer the whole financial system of
the government by such a large increase of
paper money without any backing.
silver LOSSES.
There had not been a dollar gained by the
government in the purchase of silver hull
lion. The old word "seigniorage" was one
which ought not to be engrafted in the laws
of the United States. 1t represented the
power of a lord or king to seize a portion
of the bullion brought to the mint by its
owner to be coined. 1t meant toll 1t was
word offensive TO every American mind.
But there could be no seigniorage in this
case, because there had been no profit in
the transaction. The cost of the silver bull
lion in the treasury was $125, 5000 while
its coinage value was s1So.Ooo.0O0. and that
difference was the seigniorage for which the
bill provided The fact was, however. that
the present market value OF the silver bull
lion in the treasury was only $4,000. 600, SO
that there had been loss on the transac-
ton Of Sal. 100000.
The treasury notes outstanding against
the silver purchased under the act OF 1880
was $lS0OOO.OO. So that the amount Of
loss; instead OF gain and seigniorage. was
S9S.oooUo. In other words. IL was propos-
ed. he said. to issue $50 600 600 of notes.
with promise to pay them in gold, while
the actual silver bought by that money
was only S9SO0O.OOO. He believed that the
passage of the bill meant the beginning Of
an unlimited issue of paper money There
was outstanding today, of the various forms
or demand and obligations. $685. CO.. ,O0O and
now 1t was proposed TO add to those liza
bilities the sum Of $56OO.OO0, or ~ the
Senator from Nebraska was correct, the
possible sum of $4,000 600 Did ANYBODY
suppose, Mr.. Sherman asked, that that vast
sum of money could be maintained at par
with gold? What was there on hand to
meet that enormous liability? There was in
the treasury. on the first of this month.
$lOl.OO.OO0 Of gold-obtained by borrowing
money from the people; and there was
1864. OOO.OOO Of standard silver dollars. What
in the name OF heaven would induce any
sane man to add to that hoard of standard
silver dollars? Experience had shown that
they could not be circulated. He had tried
II while he was Secretary of the Treasury
and had succeeded In getting out the enor-
nous sum OF $50. 200 900; AID that amount
had not since been attained. The most in
circulation now was only $54, OOOO0o Why
he repeated, add to that volume? Was IL To
make money? 1t was to do so only in an
pearance. 1t was a mere sham, a mere
fraud. The bullion itself was worth more
in the markets of the world than the coined
dollars would be-while the coinage would
add or 1-2 per cent to the cost 1t was
certain that under this bill the whole SUPER
structure OF the financial system of the
country would fall; and with it the country
would go down, step by step. to q single
silver standard.
Wednesdays Surprise.
After Senator's INdpe and u,go;o. IA