The morning call., 1894-03-30
sage vetOing the Bland silver seignioraee

purposes" My strong desire TO avoid dis
agreement with those in both houses Of Con-
gress who have supported this bill would lead
me 10 approve it, If l could believe the public
good would not be thereby endangered, and
that such action on my part would lie a proper
discharge OF my official duty. Inasmuch how
ever, as am unable 10 satisfy myself that The
proposed legislation is either wise or Oppor-
tunt my conc pfion OF The obligations and re-
sponslbities attached TO the gle Office /
hold forblds the indug nee Of my personal de-
sire, and neNOrabiy cOBfin me 10 that course
which is dictated by my reason and judgment,
and pointed out by sincere purpose 10 pro-
teet aud promote the general interests OF our
people.
The financial disturbance which swept over
the country during The last year was unparal-
leled IN its severity and disastrous consequences.
There seem d TO he an almost enllTe ulSpace-
menT OF faith In our financial ability and loss OF
confidence in our fiscal policy. Among those
who attempted To assign causes for our distress
were many who held mat the very generally
conced ded operation OF the provision of lie laW
then In force which required the Government
TO purchase monthly large amount OF silver
bullion and issue Its notes IN payment Their fore.
either entirely or 10 % large extent, was respon-
sIble for our condition. This led TO lie repeal,
on tie first day OF November, 1898, OF this
statutory provision.
We had however, fallen so low In the depths
of depression, ana timidity and apprehension
had so completely gained control III financial
circles tnat our rapid regeneration could not
be reasonably expected. Our recovery has.
nevertheless, steadily progressed, ana though
less than five months have elapsed since the Ie-
peal of The mischevous silver purchase require
ment a wholesome Improvement Is unmtstak-
ably apparent Confidence in our absolute sow
ency Is 10 such an extent established. and faith
IN our disposition 10 adhere to sound financial
methods is so far restored, as 10 produce the
most encouraging results, both at home ana
abroad. Tie wheels OF domestic industry have
been slowly set In motion, and the tide of
foreign Investment is again started in our di-
Teci0n
Ouf recovery being so well under way, moth
ing should De dom TO check our eonvalescence.
nor should We forget that relapse at this time
would almost surely reduce US 10 the lower
stage of financial distress than that from which
we are JuSt emerging.
l believe If the bill under consideration
should become a law il would be regarded as a
retrogression from the financial intentions in
duged in by our recent rep al OF the provision
enforcing silver bullion purchases; that 10
wOuld weaken, if IL did not DESTROY, returning
fath and confidence in our sound financial lem
dencies, and that, as a consequence, our prog
Iess to renewed business health would be un-
fortunately checked and a return 10 our recent
distressing plight seriously threatened.
This proposed legislation is so related to the
currency conditions growing out OF the law
compelling the purchase Of silver by the Gov
ernnlent that a glance at such conditions aud
partial review Of the law referred 10 may not
be Improbable. Between the 14ih day of Au-
enst, 1890, when he law became operative,
and the lSt day of Novemb r, 1898 when the
clause IL contained directing the purchase of
silver was repealed. there was purchased by
the 5 cIetary Of lie Treasury more than 16S.-
for this bullion the Cover issued treasury
notes OF various denominations, amounting to
nearly Sl56,OoO,Oo0, which notes we're immedl-
ately added 10 the currency 10 circulation among
our people. Such notes were by law made Legal
tender IN payment for all debts, public and
private, except when otherwise expressly stip-
ulaGed, and were made receivable for customs,
taxes and all public dues. and when so re-
eelved might be IelSsued. They were also per-
mitIed TO be held by banking associations as
part of their lawful reserves. On demand of
their holders these treasury notes were TO be
redeemed in gold or silver coin, in tile discre
lion OF the Secretary Of The Treasury, but il
was declared as part OF this redemption prOvis-
ion IhaI II was the established policy Of the
United States 10 maintain the TWO metals on
parity with each other upon the pr sent
legal ratio or on such a ratio as may be pro-
Vded by law, the money coined from Such bul.
lion 10 be standard silver dollars. After direct
ing the immediate coinage OF a little less than
2O,OOOOO0 ounces, The law provided that as
much OF the remaining bullion should be there
after coined as might be ceSsary to provide
for The redemption OF treasury notes issued on
It's purchase, and that "any gain or segniofage
arising from such coinage shall be accounted
for and paid into the treasury" This gain OF
selgni0rage evidently indicates so much of the
bullion owned by the Government as remained
AFTER using sufhclent amount TO coin as many
standard silver dollars as should equal In num-
Der The dollars represented by treasury notes
Issued In payment of the entire quantity OF
bullion. These treasury notes now outstanding
and IN circulation amount to S152, 951. .250, and
although there has thus far been but a CON-
pafdllVcly Small amount OF tDl5 Dulii0u coined,
yet the so-caled gam or selgntorage, above
defined, which would arise from The coinage Of
the entire mass has been easily asceTtaiDed 20
be quantity OF bullion sufficient TO make,
when coined, 90, 156, ,6S1 standard dollars.
Considering he present intrinsic relation be-
tween gold and silver, the maintenance of a
parity between The two metals, as mentioned Ia
this law, can mean nothing less than the main-
tenance OF such parity in the estimation and
confidence of the people who use our money In
daily transactions. Manifesty the mainte-
NNnn nf lEr hao l,.t.r
SO far as 1t Is affected by these treasury notes.
and in the estimation Of holders of The same, by
giving such holders on their redemption, coin.
whether gold or silver, whichever they prefer.
IL follows, while 10 It's terms the law leaves the
choice OF the com 10 be paid on such redemp-
ton 10 the discretion OF he Secretary OF the
Treasury, the exercise of this discretion, II
opposed TO The demands Of the holder is en-
tirely Inconsistent with the effective beneficial
maintenance of 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 safe and staple currency the ne
cessity of preserving this parity is obvious.
Such necessity has been repeatedly conceded
I'm the platforms OF both political parties and III
our Federal statutes. Ii is nowhere more enl-
phatically 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 parity in the
value OF the coins OF the two metals ana The
equal power OF every dollar at all times IN the
kets and III the payment OF debts. The
Secretary OF the Treasury has, therefore, for
the best Of reasons, not only complied with
every demand for The redemption OF these
treasury notes ID gold, but the present situa-
lion. as well as he letter and split of the law,
appear plainly 10 justify If they do not enjon
upon him, the continuation OF such redemption.
The conditions l have endeaYOred to present
may be thus summarized:
First-1he Government has purchased and
now has on hand sufficient silver bullion TO per-
nit the coinage Of all the silver dollars neees-
sary o redeem IN such silver dOa the treas
uTy notes issued for the purchase of said silver |
bullion, aud enough besides to coin, as gam or |
seigniorage 90, l56, ,6S1 additional standard sill
yer dollars.
Second--There are outstanding and now in
circulation treasury notes issued in payment of
bullion purchased amounting TO $152, 951 .280. |
These notes are legal tender in payment of all
debts, public and private, except when other |
wise expressly stipulated. They are receiva-
bic for customs, taxes and all public dues.
When held by banking associations they may
be counted as part of their lawful reserves and |
are redeemed by the Government IN gold at the !
option of holders. These advantageous attri- |
butes were deliberately attached to these notes |
at the lime Of their Issue. They are fully I'M |
derst0od by our people, to whom such notes
have been distributed as currency, aud have in |
spired confidence in their safety and value, and |
have undoubtedly thus induced their continued
and cODtented use as money, Instead OF anxiety !
for their redemption.
Having referred TO some incidents which
deem relevant 10 the subject, II remains for me
10 submit specific sta,emen OF my objections