The record-union., 1894-03-30

| currency, and have inspired confidence il
/ their safety and value, and have undoubtedly
J thus induced their continued and contenteC
/ use as money, instead of anxiety for their re
demption.
| Having referred to some Incidents which
deem relevant to the subject, it remains 70
me TO submit a specific statement Of my OBJ
! jections to the bill now under consideration
! This bill consists of two sectionS-eXcludins
the one which merely approprates sun
| sufficient to AIRY the Act into effect.
The first section provides for the immediat,
coinage of silver bullion in the Treasury
! which represents the so-called gain, or seign
| forage, which would arise from the coming O
ali bullion on hand which gain, or seignior
age, this section declares to be 500, loo, 6S1
IL directs that the money so coined, or Ger
titcates issued thereon. shall be used in pay
ment of public expenditures, and provide!
that, If the needs of the Treasury demand ii
the Secretary OF the Treasury may IN his dis
cretlon issue silver certificates in excess o
such coinage, not exceeding the amount o
selgn1orage in said section authorized TO bt
coined
The second section directs that, as soon a:
possible, after the coinage of this seigniorage
the remainder OF the bullion held by the Gov
ernment shall be coined into legal tender
standard silver dollars and that they shall bt
held in the Treasury for the redemption
OF Treasury notes issued to purchase
said bullion. 1t provides that as fast as
bullion snail be coined for the redemption o
said notes, they shall not be reissued, bu
shall be Cancelled and destroyed In amounts
a
Treasury derived from the coinage provided
for, and that silver certificates shall be issued
on such coin and in the manner now pro
vidtd by law. 1t is, however. especially de
clared in said section that the Act shall moi
be construed to change existing laws relating
to the legal tender character or mode of re
demption of the Treasury notes issued for the
purchase of silver bullion to be coined.
The entire bill is most unfortunately con
structed. Nearly every sentence presents un
certainty and invites controversy as 10 its
meaning and intent. The first section is espe
clally faulty iii this respect, and it is eX
tremely doubtful whether its language will
permit the consummation of its supposed
supporters.
am led to believe that the promoters o.
the bill intended in this section TO provide foi
the coinage of bullion constituting the gain
or seigniorage as it is called, into standard
silver dollars, and yet there is positively
nothing in the section to prevent its coinage
into any description of silver coin now au
thoriZed under any existing law.
suppose this section also intended in case
the needs OF the Treasury called for money
faster than seigniorage bullion could actually
be coined, to permit the issue OF silver certifi-
Gates in advance OF such coinage, but its Ian
guage would seem TO permit the issuance o
such certIncateS TO double the amount of such
seigniorage as stated, one half OF which would
not represent an ounce of silver in the Treas
ury.
The debate upon this section In Congress
developed an earnest and positive difference
of opinion as to its object and meaning In
any event, l am clear that the present per.
plexities and embarrassments OF the Secre-
tary OF the Treasury ought not to be aug
mented by devolvIng upon him the execution
of a 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 the further Infusion OF silver into
our currency at this time, unaccom lanied by
further adequate provision for the mainte
nance in our Treasury of a safe gold reserve
Doubts also arise as to the meaning and
construction of the second section of the
bill. Ii the silver dollars therein directed to
be coined are the section provides, to be
held in the Treasury for redemption of Treas
ury notes, it Is suggested that, strictly speak
ing, certificates cannot be issued on such
coin in the manner now provided by law, be-
cause these dollars are money held in the
Treasury for the express purpose OF redeem
ing Treasury notes on demand, which would
ordinarily mean that they are set apart for
the purpose OF substituting them for these
Treasury notes. They are not, however, held
in such way as TO furnish basis for certif-
Gates according to any provision of existing
law. II, however, silver certificates can prop
erly be issued upon these dollars, there is
nothing in the section to indicate the char
acteristcs and functions of these certificates.
If they were to be of the same character as
the silver certificates in circulation under ex-
listing laws, they would at best be receivable
only for customs. taxes and ali public dues:
and under the language of this section it is to
say the least, extremely doubtful whether the
and description which will have none of these
qualities ON 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 beensdecreed when they reach the Treas
ury must tend to their withdrawal from gen
eral circulation, to be Immediately presented
for gold redemption or to be boarded for re-
denlpJion at a more convenient season.
The sequel to both operations will be q
large addition TO silver currency in our circu-
latton and a corresponding reduction of gold
in the Treasury.
The argument has been made that these
things viii not occur at once, because q long
time must elapSe before the coinage of any
thing but seigniorage can be entered upon
II the physical effects of the second section
of this bill are not to realized until far in the
future, this may furnish strong reason why
il should not be passed so much in advance,
but the postponement of its actual operation
cannot prevent tue fear and loss of confidence
and nervous prostratiOn which would imme-
diately follow It's passage and bring about its
worst consequences.
l regard this section Of the bill as embody-
ing plan by which the Government will be
obliged to pay out its scanty share of gold for
no other purpose than to force the unnatural
addition of silver money into the hands of our
people. This is an exact reversal of the pol
icy which safe finance dictates, if we are to
preserve the parity between gold and silver
and maintain sensible bimetallism.
We have now OutStand ding more than $685.
100000 in silver certificates issued under
existing laws. They are serving the purpose
OF money usefully and without question. Our
gold reserve, amounting to only a little more
than S1o0,0 100000, is directly charged with
the redemption of S346, 100000 of United
States notes, when it proposed to initiate our
silver currency. 1t is time for strengthening
our gold reserve, instead of depicting it.
cannot conceive of q longer step toward
silver metallisln than we take when we spend
our gold to buy silver certificates for circula-
tiOn especially in view OF practical difficulties
surrounding replenishment of our gold
This leads me to earnestly present the de-
STABILITY OF granting the Secretary of the
Treasury better power than now exists to
issue bonds TO protect our gold reserve when
for any reason 1t should be necessary.
Our currency is in a confused condition and
our financial affairs are apt to assume at any
time so critical position it seems to me that
such a course is dictated by ordinary pru-
dence.
| am not insensible to the arguments in
favor OF the coinage af the bullion seignior-
age now in the Treasury, and | believe it
could be done safely and with advantage If
the Secretary OF the Treasury had the power
TO issue bonds at low rate of interest under
the authority in substitution OF that now ex-
listing, and better suited TO the protection of
the Treasury.
[ hope a way will present itself in the near
future for the adjustment of our monetary
affairs in such comprehensive and conserv-
ative manner as will afford to silver Its proper
place in our currency. But in the meantime
l am extremely solicitous that whatever
action We take on this subject may be such as
to prevent loss and discouragement to our
people at home, and destruction of confidence
in our financial management abroad.
GROVER CLEVELAND.
THE e. p. AND GULF CASE.