The Bolivar bulletin. (Bolivar, Tenn.) 1888-1946, 1894-04-06

SAAfcI UulIAOn HelO the bESA5UI9 anu LOT JULIET
purposes"
NV strong desire I'd avoid disagreement with
those In both houses OF c6ngtesS Tho haas
supported this bill, would lead me to approve
10 IL could believe that the public good would
not be thereby endangered and that such ac-
tion my part would be d proper discharge OF
able 20 satisfy myself that the proposed legis-
latidn is either 7ise or cppctttne, ny ceneen
tiOn OF the obligations ard res pOnsibiH
ties attached TO the great ONCE hold
forbids the indulgence Of my personal desire,
and inexorably confines me TO that course
which is dictated BY my reason and judgment,
end pointed out by sincere purpose TO pro-
tect and promote the general interests OF our
The 6nshciai disturbance which swept over
the country during the last year was I'M
paralieled in its severity and disastrous con-
sequences. There seemed to be almost an en-
tire displacement of faith in our financial
ability and a loss OF confidence in our fiscal
policy. Among those who attempted "a assign
causes for our distress it was very generally
conceded that the operation of a provision of
law then in force, which required the govern
ment to purchase monthly a large amount Of
silver bullion and issue its notes I'm payment
therefor, was either entirely, or to
large extent, responsible for our
day Of November 1893 OF THIS statutory pro-
vision. We had, however, fallen so low in the
depths of depression, and timidity and appre
henSlon had so completely gained control in
financial circles, that our rapid recuperation
could not be reasonably expected Our recOv-
cry has, nevertheless steadily progressed, and
though less than five months have elapsed since
the repeal OF the ntischietGus silver purchase
requirement, a wholesome Improvement is I'M
mlStakably apparent. Confidence in our absO-
lutte solyency is to such an extent reinstated
and faith in our disposition to adhere
70 SOUND hnanclal methods Is so far
restored as to produce the most encouraging
results both at home and abroad The wheels
Of domestic industry have been slowly set in
motion ana the tide OF foreign investment has
again started in our direction Our recovery
being so well under way, nothing should be
done to check our cOnvalescence; nor should
fhOf TaIo IA
most surely reduce is to a lower stage of imam
cial distress than that from which we are lust
emerging. believe that if the bill under con-
sideration should become law it would be re-
garded as a retrogresSion from the financial
| intentions indicated by our recent repeal
OF the provision forcing silver bullion
purchases; that il would weaken, IL it did not
destroy, returning faith and confidence In our
sound financial tendencies, and that as a con
sequence our progress TO renewed business
health would be unfortunately checked and a
return to our recent distressing plight seri-
Ously threatened. This proposed legislation
IS so related TO the currency conditions grow
/ ing out Of the law compelling the purchase of
silver by the government, that glance at
such conditions. and partial review of the
law referred TO may not be Improbable.
Between the 18th day of August 1890, when
the law became operative and the LIST day of
November 1893 when the clause IL contained
directing the purchase of silver was repealed
there were purchased by the secretary of the
silver bullion. In Payment for this
bullion the government issued it treasury notes
s.
Sl56OJOOOO which notes were Immediately
added to the currency in circulation among our
people. Such notes were by the law made
legal tender IN payment OF all debts, public and
private, except when otherwise expressly slip
ulated, and were made receivable for customs,
taxes and all public dues. and when SO received
might he reissued They we're also permitted
to be held by banking associations as part of
their lawful reserves. On the demand of the
9eeined IN goid or silver coin In the
discretion OF the secretary OF the treas
Try PJ but It was de5sFed as . part Of
the established policy of the United States TO
maintain the two metals on parity with each
other upon the present legal ratio. or such
ratio as may be provided by law"
The money coined from such bullion was to
be standard silver dollars. and after directing
the immediate coinage of little less than 70
OO0,0v0 ounces the law provided that as much of
the remaining bullion should be thereafter
the redemption OF the treasury notes issued on
its purchase. and that any gain or seigniOrage
arising from such coinage shall be accounted
for and paid into the treasury"
This gain or SeigniOrage evidently indicates
so much of the bullion owned by the govern
ment as should remain, after using sufficient
amount TO coin as many standard silver dol
lars should equal in number the dollars rep
resented by the treasury notes issued in pay
ment of the entire quantity of bullion. These
treasury notes now outstanding and in clrcula-
tion amount to Sl52, 95i $50, and although there
has been thus far but comparatively small
amount OF this bullion coined, yet the so-called
gain or seigniorage, as above defined, viii ch
would arise from the coinage of the entire
mass, has been easily aScerta1Ged to be
quantity OF bullion sufficient to make
when coined. 55. l566Sl standard silver dollars
Considering the present intrinsic relation be-
tween gold aud silver the maintenance of the
parity between the two metals, mentioned
in this law, can mean nothing less than the
maintenance OF such parity in the estimation
and confidence Of the people who use our
money in their daily transactions. Manifestly
the maintenance of this parity can only be ac-
COmpliShed so far as II is affected by these
treasury notes, and in the estimation of the
holders Of the same, by giving to such holders,
on their redemption, the coin, whether It is
gold or silver which they prefer 1t fol-
lows that while in terms the law leaves
the choice OF coin to be paid on
secretary of the treasury, the exercise
OF this discretion, il opposed to the demands of
effective aud beneficial maintenance of the
parity between the two metals
Ii both gold and silver are to serve us as
money, and If they together are to supply to
our people a safe and stable currency, the ne
cesSity of preserving this parity is obvious.
Such necessity has been repeatedly conceded
in the platforms of both political parties and
in our federal statutes. 1t is nowhere more
emphatically recognized than in the recent
law which repealed 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 promptly COM
piled with every demand for the REDEEM ptioE of
these treasury notes in gold, but the present
situation, as well as the letter and spirit of the
law appear plainly to justify, if they do not en-
Join upon him, continuation Of sucn redemp
ton. The conditions 1 have endeavored 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 the silver dollars
necessary to redeem. in such dollars, the treas
ury notes issued for the purchase of said silver
bullion. and enough besides to coin. as a gain
or seigniorage, $3.50, 6Sl additional standard
silver dollars.
Second-There are outstanding and now in
circulation treasury notes issued in payment of
the bullion purchased amounting to &152, 951,-
Of all debts, public and private. except when
otherwise expressly stipulated; they are re-
ceiveable for customs taxes and all public
dues; when held by banking associations they
NAV be counted part of their lawful re-
serves. and they are redeemed by the govern
ment in gold at the option OF the holders.
These advantageous attributes were deliber-
atey attached to these notes at the time of
their issue. they are fully understood ty our
people to whom such notes have been dis
tributed currency, and have inspired con-
fidcnce in their safety and value, and have IN
doubtedly thus induced their continued and
cCntented use as money, instead Of anxiety for
their redemption.
deem relevant to the subject, 1t remains for me
to submit a specific statement OF my objections
to the bill now under consideration.
This bill consists of two sections, excluding
one which merely appropriates sum sufficient
to carry the act into effect
The first section provides for the immediate
coinage of the silver bullion in the treasury
which represents the so-called gain or seign-
forage, or which would arise from the coinage
of all the bullion on hand, which gain or seign-
forage this section declares TO be SIS. 1855 6e1.
II directs that the money so coined, or the GER
tiicates issued thereon, shall be used in the
payment of public expenditures. and provides
that il the needs OF the treasury demand it.
"A nv n n