The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-03-30

on such coin in the manner now pro- |
vided by law" because these dollars
are money held in the treasury for the
express purpose of redeeming treasury
notes on demand, which would ordi-
narily mean that they are set apart for
the purpose of substituting them for
these treasury notes. They are not, |
therefore, held in such way as to fur
niSh basis for certificates according
to any provision of the existing law.
If, however, silver certificates can
properly be issued upon these dollars,
there is nothing in the section to indi-
cate the characteristics and functions
or these certificates. If they we're to
be of the same character as silver GER
tiflcateS in circulation under the exist
ing laws, they would at best be receiv-
able 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 certi-
ficates contemplated can be lawfully re-
celved even for such purposes. What
ever else may be said of the uncertain
ties of the expression in this bill, they
certainly ought not be found in legis-
lation affecting a subject so important
and far-reaching as our finances and
currency.
In stating other and more important
reasons for my disapproval of this sec
ton, l shall, however, assume that I'M
der its provisions the treasury notes
issued in payment for the silver bull
lion will continue to be redeemed as
heretofore in silver or gold at the OPP
ton of the holders, and that, if when
they are presented for redemption or
reach the treasury in any other man
ner, there are in the treasury coined
silver dollars equal in nominal value to
such treasury notes, then in that case
the notes will be destroyed and silver
fiaa tnc To 81 !,
stituted.
Ill Advised and Dangerous.
I am convinced this scheme is ILL
advised and dangerous. AS the ulti-
mate result 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, will be replaced
by silver certificates which, whatever
may be their character and descrip-
ton, will have none of these qualities.
In anticipation of this result, and
as the immediate effect, treasury notes
will naturally appreciate in value and
desirability. The fact that gold can
be realized upon them, and the further
fact that their destruction has been
decreed 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 would be large addition to
the silver currency in our circulation,
and a correspondingly reduction of
gold in the treasury.
The argument has been made that
| these things will not occur at once,
| because a long time must elapse before
the coinage of anything but the seig-
1 nj 1,oc an ha
! 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 it
should not be passed so much in adj
vance; but the postponement of its
actual operation cannot prevent the
fear and loss of confidence and ner-
vous prostration which would imme
diately follow its passage\ and bring
about it's worst consequences.
! / regard this section of the bill as
embodying a plan by which the gov
eminent would be obliged to pay out
! its scanty store of gold for no other
| purpose than to force an unnatural
addition of silver money into the hands
of our people. This is the exact reYer-
sal of the policy which safe finance
dictates, if we are to presrve the par
lity between gold and silver and main
tain a sensible bimetallism. We have
now outstanding more than $33S, 000,
600 in silver certificates, issued under
the existing laws. They are serving
| the purpose of money uSefully and
without question. Our gold reserve,
amounting to only little more than
S100000 600, is directly charged with the
redemption of $346, 100000 United States
notes. When it is proposed to initiate
our silver currency it is time for
strengthening our gold reserve, instead
of depicting it.
Says it Is Recommendations.
cannot conceive of a longer step
toward silver monometallism than we
take when we spend our gold to buy
silver certificates for circulation, es-
culties surrounding the rep!enishment
of our gold.
This leads me to earnestly present
the desirability Of granting the secre-
tary of the treasury better power than
now exists to issue bonds to protect
our gold reserve, when for any rea-
son it should be necessary Our cur
rency is in such a confused condition
and our financial affairs apt to assume
at any time so critical q position. it
seems to me such a course is dictated
by ordinary prudence
/ am not inSenSible to the arguments
in favor of coming the bullion seignior-
as HOW III me treasury, ana DelleVe
1t could be done safely and with adj
vantage, if the secretary of the treas
ury had power to issue bonds at a low
rate of interest under the authority in
substitution of that now existing. and
better suited to the protection of the
treasury.
hope way will present itself in
the near future for an adjustment of
our monetary affairs in such a com.
prehensive and conservative manner
as will afford to silver its proper place
in our currency; but in the meantime
am extremely solicitous that what.
ever action we take on this subject
may be such as to prevent a loss and
disbursement to our people at home
ana the destruction of confidence In
our financial management abroad
(Signed) GROVER CLEVELAND.
Following LIN tho w..