Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1894-03-09
FIGHTING CHANCE
GCon.inued from lst page.

about pay ing the seigniorage into the treas
ury did not operate or come into existence
according to the decision of two secretaries
of the treasury-one Democratic, the other
! Republican.
| The bill before us, remarked Sherman,
| provides for taking from the treasury
vaults $50. 600 ,0oo in bullion, pledged to
/ the redemption of treasury notes, as sa-
credly as a mortgage upon land or any other
obligation of public faith. This bullion IS
to be taken in plain violation of the law Of
1890, in plain violation of the contract Of
, the citizens of the United States and the
United States at large. This is breach of
public faith which ought to stamp this
measure with the condemnation of every
man who has any regard fjr the obligations
of contracts.
Henderson called attention to the fact
that under the language of the seigniorsg !,
till not only might 30 900, 900 silver dollars
be coined, but an additional So 000, 900 in
treasury notes be issued.
Sherman said it was impossible to have
more than two or three millions Of silver
coined monthly, and there is now some
300 900 900 silver dollars on hand. With
out waiting until there was demani for
that silver for the purpose of circulation, 1t
was proposed to issue silver certificates on
the faith of the silver bullion to the amount
of $50 ,00O, 600 1t is perfectly clear that
under this bill the $50 100000 could be
dou bled, il an excess OF the first SO ,000,-
900 was demanded by the needs of the
treasury.
The proposed issue of So 900, 900 Of
paper money is based on the money stolen
from the fund pledged to redeem treasury
notes. He would be willing to borrow
money. at any rate of interest, rather than
sndanger the whole financial system Of the
government by such large increase of
paper money without any backing. Sher-
man declared there had not been a dollar
Of silver bullion.
There has never been any foundation for
seigniorage. There could be no seign-
forage in this case because there had been
no profit The cost of silver bullion In
The treasury was $l25 600 600; its coinsge
valuage WAS $3.50 900 900, and that differ
ence was the seigniorage for which the bill
provided. The present value of silver bull
lion in the treasury was only Ssh 100000,
so there had been a loss on the transaction
of Sill 900 900. The treasury notes out
standing against the silver purchased under
the act of 1890 aggregated $3.50 900, 900.
The amount of loss instead of gain and
seigniorage was sos, 100000. There was
outstanding today of various forms of de-
mand obligations, S956,0 00,0 600. 1t is now
proposed to add to those liabilities $50 ,000,
900, possibly 81 1900 600.
There was in the treasury on the first of
tbi, month $lO7 900 900 in gold and 3G+,-
OOO 900 silver dollars. Experience has
shown that the latter could not be circulated.
The most in circulation now is $ji 600 900.
TIE bullion itself is worth more in the
markets Of the wor Id than the coined dollars
would be, while the coinage would add one
or one and half per cent. to the cost. 1t
is certain that under this bill the Whole
superstructure of the financial system of
the country would fall ana with it the
country would go down to single silver
standard.
arguments against the bill were made
by Lodge and Higgins. The question being
on Allisons motion to reconsider the vote
ordering the engrossment and third reading
of the bill. a motion to lay that motion on
the table was made by Faulkner, but as that
motion would shut off debate and as ALI
son aud Villas wished to address the Senate,
Fau kner withdrew the motion.
Hoar demonstrated az inst violation of
the practice of the Senate in rushing the
bill, yesterday, to its third reading. Al
drich also criticised the "celelity" of yes
teiday proceedings, which, he said, he had
never seen equaled in the disposition of an
important measure.
Faulkner, who occupied the chair when
those proceedings took place, insisted that
they had been, on bis part, characterized
by extreme caution. He was not response
bic, he said, for the negligence" of the
Senators.
Harris expressed determination to resist
any reconsideration and any amendment to
the bill on the ground that if the bill had to
he sc mt back to the House the chances
ag iinst action on i. their were nine to enc.
Ii was finally arranged that Allison would
have the floor tomorrow to speak in favor
of hi, molten. The Senate went into exc c.
tive session and afterwards adj ourned.