The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-03-30

/ in payment OF all debts. public and private,
/ except when otherwise expressly stipulated;
| they are receivable for customs, taxes and
| all public dues when held by banking asso-
| cations they may be counted as part OF
| their lawful reserves, and they are re-
| deemed by the government In gold at the
| option OF the holders These advantages
| the time of their issue; they are fully I'M
1 derstood by our people to whom such notes
have been distributed as currency, have in
4 spired confidence in their safety and value,
/ and have undoubtedly thus induced their
| continued and contented use as money in
| stead Of anxiety for their redemption.
| OBJECTIONS TO THE BILL.
| Having referred to some incidents which
| l deem relevant to the subject 1t remains
/ for TO submit a specific statement of
my objections to the bill now under con-
sheraton This bill consists of two sec
tons, excluding one which merely appro-
| PIRATES a 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
called gain or seigniorage which would
| arise from the coinage of all the bullion
| ton declares to be S55,156,6S. 1t directs
| tnat the money so coined or the certificates
menf Of e6 snail be used IN the Ray
| tnat IL the needs of the treasury demand Ii
| the secretary of the Treasury may, in his
| discretion, issue silver certificates in ex-
| cess OF such coinage, not exceeding the
amount of seigniorage In said section
The second section directs that as soon
| as possible after the coinage of this seign-
| forage the remainder of the bullion held
| py the government shall De coined into
| legal-tender standard silver dollars. and
| they shall be held in the treasury for the
| redemption OF the treasury notes issued
| In the purchase of said bullion. 1t provides
| that as fast as the bullion shall be coined
Tor the redemption of said notes they shall
| not be relssued, but shall be cancelled and
4 L
| held at any time In the treasury derived
from the coinage provided for, and that
| the silver certificates shall be issued on
such coin In the manner now provided by
| law; 1t is. however especially declared In
SAID section that the act shall not be con-
| strued to change existing laws relating to
| the legal-tender character mode of re-
| demption OF the treasury notes issued for
the purchase of the silver bullion to be
i coined
The entire bill is most unfortunately con-
structed. Nearly every sentence presents
uncertainty and invites controversy as to
us is meaning and intent The first section
| Is extremely doubtful whether its language
| Will permit the contamination of it's sup
posed purposes 1 am led to believe that
the promoters Of the bill intended in this
| section TO provide for the coinage of the
| bullion constituting the gain, or seignior-
age, as IL Is called, into standard silver dol
| lars, and yet there is positively nothing In
the dne section to prevent it's coinage into any
description of silver coins now authorized
| under any existing law. / suppose this
section was also intended. in case the needs
| of the treasury called for money faster
| tnan the seigniorage bullion could actually
| be coined, TO permit the issue of silver GER
/ llncateS in advance Of such coinage: but
s s,s language would seem to permit the is
suance or such certificates to double the
amount Of seigniorage as stated one-haIf
| OF which would not represent an ounce of
/ suVer In the treasury. The debate upon
| THIS section In the Congress developed an
| earnest and positive difference of opinion
as to its object and meaning. In any event,
am clear that the present perplexities
and embarrassments of the Secretary of
the Treasury ought not to be augmented
py ueVolvlng upon him the execution Of a
Ia" SO uncertain and confused.
| SECOND SECTION AMBIGUOUS
am not willing however, to rest my OBJ
| lection to this section solely on these
grounds; In my judgment sound finance
| does not commend a further infusion of sill
yer into our currency at this time unaccom-
| panied by further adequate provisions for
the maintenance in our treasury of safe
gold reserve. Doubts also arise as to the
meaning and construction of the second Sec
/ ton of the bill. If the silver dollars therein
/ directed to be coined are, as the section pro-
| WOES, 10 be held in the treasury for the re-
that, strictly speaking, CERTIFICATES cann red
| De issued on such coin "in the manner now
provided by law" because these dollars are
1 money held In the treasury for the express
purpose of redeeming treasury notes on de-
| mand which would ordinarily mean that
shutting them for these treasury Oh n6 Sne
| They are not, therefore held in such a way
| as to furnish basis for certificates ac-
| cordng to any provision of existing law
] II, however, silver certificates can properly
/ be issued upon these dollars. there is nothing
| in the section to indicate the characteristics
| and functions of these certificates. If they
| were to be Of the same character as silver
certincateS In circulation, under existing
| laws, they would at best be receivable only
Tor customs, taxes and all public dues and.
to say the Least Extremely t doubtful wbetbe Is,
| tne certincates 1t contemplates would be
| lawfully received even for such purposes.
| Whatever else may be said of uncertain
| ties of expression I'm this bill, they certainly
| ought not to be found in legislation affect
| ing subjects important and far-reaching
| as our finances and currency. In stating
| other and more important reasons for my
| dsapproval of this section l shall how
| treasury notes issued in payment for silver
bullion will continue to be redeemed, as
| of the holders, and that If when they are
| presented for redemption, or reach the
| the treasury coined silver dolas equal In
! nominal value to such treasury notes, then,
ana In that case, the notes would be de-
| amount substituted
I am convinced that this scheme is ILL
suit of its operation treasury notes which
| are legal tender for all debts, public and
| private. and which are redeemable in gold
or silver, at the option of the holder, win
| be replaced by silver certificates which,
whatever may be their character and de-
| scription, 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 desirable
| ity. The fact that gold can be realized upon
| them. and the further fact that their de-
| struction has been decreed when they reach
| the treasury must tend to their withdra wal
| from general circulation to be Immediately
| presented for gold redemption or TO be
| boarded for presentation at a more con-
| venient season. The sequel of both opera
| tons will be large addition to the silver
| currency in our circulation and a corre-
| spending reduction of gold in the treasury
| The argument has been made that these
| things will not occur at once, because long
| time must elapse before the coinage of any
| thing but the seigniorage be entered
| upon
| WOULD EAT UP THE GOLD.
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 a strong reason why ii should
not be passed much in advance but
the postpOnement of it's actual operation
cannot prevent the fear and loss of conf
| dence and nervous prostration which would
nnediately follow its passage and bring
about its worst consequence. / regard this
| section of the bill embodying a plan
| by which the government will be obliged
| TO pay out its Scanty store of gold for no
| other DurpOS1 than to force unnatural
| addition of silver money into the hands
| OF our people. This is an exact reversal
of the policy which safe finance dictates
| II we are to preserve a parity between
gold and silver and maintain sensible BIZ