The Portland daily press., 1894-03-30

sued for the purchase of the silver bull
| lion to be coined.
The entire bill is most unfortunately
constructed.
Nearly every sentence presents uncer
tainty and invites controversy as to it,
meaning and intent.
The first section is especially faulty il
tn is respect, and it is extremely doubt
full whether it's language will permit
the contamination OF it's supposed pur
pose.
of the bill intended in this section te
prov ide for the coinage of the bullion
constituting the gain or eeigniorage, as
! it is called. into standard silver dollars;
an YET there is positively nothing in the
section to prevent it's coinage into
Any Description of Silver Coins
now authorized under any existing law.
| l suppose this section was intended, in
case the needs of the treasury called fol
money faster than the seigniorage bull
/! lion could actually be coined. to permit
| the issue of silver certificates in ad-
vance of such coinage; but its language
| would seem to permit the issuance OF
| such certificates to double the amount
| Of seigniorage as stated, one-halt OF
which would not represent an ounce Of
| SllVSI Ill buc Ui6dSQEy,
| The debate upon this section IN the
| Congress developed all earnest and posi-
tive differences of opinion as to its OBJ
| Ject and meaning.
In any event am clear that the pre-
sent perplexities and embarrassments Of
! the secretary of the. treasury ought not
to be augmented by devolving upon
him the execution OF law SO uncertain
! and confused.
| am not willing, however, to rest my
objection to this section solely on
| these grounds; in my Judgment sound
| finance does not commend a further
| infusion of silver into our currency at
| this time, unaccompanied by further
| adequate provisions for the main te-
nance in our treasury of safe gold re-
serve.
| Doubts also arise as to the meaning
and construction of the second section
| of the bill.
| If the silver dollars therein directed
| to be coined are, as the section provides,
| to be held. in the treasury for the re-
| demption of treasury notes, it is sug-
| gested that, strictly speaking, certif-
oates cannot be issued on such coin sin
| the manner now provided by law"; be-
| sides these dollars are money held in the
| treasury for the express purpose OF re-
| deeming treasury notes on demand,
which would ordinarily mean that They
were set apart for the purpose of substi-
tuting them for these treasury notes.
TheyN are not, therefore, held in such
way as to furnish basis for certif1-
Gates according to any. provision of exist
ing law.
erly be issued upon these dollars. there
is nothing in the section to indicate the
characteristics and functions of these
certificates. 1t they were to be of the
oh oafp OS Gil N
circulation under existing laws they
would at best be receivable only for
customs, taxes and all public dues, and
under the language of this section it is,
to say the least, extremely doubtful
whether the certificates it contemplates
would be lawfully received even for
such purposes.
Whatever else may be said of the un-
certainties of expression in this bill, they
certainly ought not to be found in leg
islatiOn affecting subjects so important
and far-reaching as our finances and
currency.
In stating other and
More Important Reasons
for my disapproval of this section
shall, however, assume that under it's
provisions the treasury notes issued in
payment for silver bullion will con-
tinue to be redeemed as heretofore in
silver or gold at the option of the hold
ers; and that if when they are presented
for redemption, or reach the treasury in
any other manner, there are in the trea-
sury coined silver dollars equal in nom
inal value to.such treasury notes, then
and in that case notes will be de-
stroyed and silver certificates to go an
equal amount be substituted.
/ am convinced that this scheme is ill
advised and dangerous. AS an ultimate
result of it's operation treasury notes
which are legal tender for all debts,
public and private, and which are re-
deemable in gold or sill yer, at the option
of the holder will be replaced by sill
yer certificates, (which, whatever may
be their character and description, Will
have none of these qualities.
In anticipation OF this result and as
an immediate effect, the treasury notes
will naturally appreciate in value
and desira bility. The fact that gold can
be realized upon them and the further
fact that their destruction has been de-
creed when they reach the treasury must
tend to their withdrawal from general
circulation, to be Immediately presented
for gold redemption or to be boarded
for presentation at more convenient
season.
The sequel OF both operations will be
our circulation an corresponding re-
duction of gold in the treasury.
The argument has been made that
these things will not occur at once, be-
cause long time must elapse before the
coinage of anything but the seignior-
age can he entered upon.
If the physical effects of the execution
of the, second section of this bill are not
to be realized until far in the future
this may furnish strong reason why it
should not be passed SO much in ad-
vance; but the postponement of it's act
ual operation cannot prevent the fear
and loss of confidence and nervous pre-
caution which would Immediately fol-
low it's passage and bring about the
worst consequences.
I regard this section of the bill as en-
bodying plan by which the.govern-
ment Will be obliged to pay out its scan
ty store of gold for no other purpose
than to force an unnatural addition of
silver money into the hands Of our peo-
pie.
This is an exact reversal of the policy
which safe finance dictates if we are to
preserve parity between gold and sill
yer and maintain sensible bimetalism.
We have now outstanding more than
1888, 900, 600 in silver certificates issued