The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1894-03-09

Issue, Apparently, But in Order to Give
Other Senators a Chance to Speak
General Washington News-How Mr..
Reed Is Made to Deliver a Free Trade
Speech and Mr. Wilson an Argument
for Protection.
Washington, March Sat 2 pm. the
Vice President laid before the Senate the
unfinished business, being the Bland
seigniorage act, the pending question be-
ing on MIR. Allison's motion to reconsider
the vote of yesterday ordering the en-
grossment and third reading of the bill.
Mr.. Sherman, Republican of Ohio, ex-
pressed the hope that.the Senate would
make no real objection to Mr.. Allison's
motion, SO as to leave the bill open to
amendment. He declared there was no
disposition ON his side of the chamber to
prevent action on the bill. He sug-
gested that Senators on both sides
should proceed in the matter without
taking advantage of the rapid declara-
tion on the part of the presiding officer
that the bill was read third time.
Mr.. Harris, Democrat of Tennessee, de-
clared that the bill had reached its
present stage through the regular
methods of procedure. He knew of no
reason why the bill should not be dis
posed of in thirty minutes.
Mr.. Sherman asked Mr.. Harris, as a
kind hearted man and man observan5
of the courtesies of the Senate, whether
it was wise to insist upon the result OF
vote taken without the knowledge of
several Senators He argued that the
bill was violation of public faith, as
declared in the act of 1890, which
pledged, to the redemption of the silver
certificates the entire silver bullion pur-
chased by them. He believed it the
beginning of an unlimited issue of paper
money to meet current expenditures and
believed it would substitute for the
bimetallic standard of gold and silver
the monometallism of silver only. The
act of 1890, he said, meant clearly that
silver bullion purchased under it should
be coined into dollars as needed to re-
deem the silver certificates. There was
in the treasury in 1890, three hundred
been felt by everyone that..the coinage OF
silver bullion should not be continued
further. A provision had been inserted
in the law of 1890 that. after that year,
the coinage of silver dollars should only
90 forward at the discretion OF the
Secretary of the Treasury, and only when
needed for the redemption OF treasury
notes. The act of 1890 provided that the
silver bullion resulting from it should
remain in the treasury as security for
the treasury notes ssissued for it's pur-
chase. 1t happened, Mr.. Sherman con-
tinued, that in the two or three years
which followed the first of July, 1881, the
Secretary of the Treasury and his sue
cessor, had not coined the silver bullion.
The seigniorage did notaarise until after
the bullion was coined, and therefore
the provision of the act of 1890, about
paying the seigniorage into the treasury
did not operate or come into existence,
according to the decision of two Secre-
taries of the Treasury, one Democrat
and the other Republican. 1.-The bill
before u.s." remarked MIR. Sherman, pro
vides for taking from the treasury vaults
S55, 900, 600 Of bullion pledged to the re-
demption of treasury notes as sacredly
as a mortgage upon land or any other
obligation of public faith. This bullion
is to be taken in plain violation of the
law of 1880, and in plain violation OF the
contract between the citizens Of the
United States.and the United States at
large. This is breach of public faith,
which ought to stamp this measure with
the condemnation OF every man VINO has
any regard for the obligations of con-
tracts.
Mr.. Henderson, .Repu blican OF
Nebraska. called attention to the fact
that under the language OF the
seieniorage bill, not only might $55, 000,-
900 of silver be coined but an additional
S55. .OOO, 900 of treasury notes might be
issued.
Mr.. Sherman said it was impossible to
have more than two or three millions of
silver coined monthly. There are now
some $500, ,O00,000 of silver ON hand.
Without waiting until there was a de
mand for that silver for purposes of cir
culation, it was proposed to issue silver
certificates on the faith of the silver
bullion to the amount of sos, 900, 600. 1t
was perfectly clear under this bill that
the SIS, 900, 900 could be doubled. If an
excess of the first ffty-fve million was
demanded by the needs of the treasury,
it was proposed to issue fifGy-five
millions of paper money based on the
money stolen from the fund pledged to
redeem the treasury notes. He would
be willing to borrow money, at any rate
of interest, rather than to endanger the
whole financial system of the govern
ment by such large increase of paper
money without any backing. Mr.. Sher-
man declared that there had not been a
dollar gained by the government in the
purchase of the silver bullion. There
never had been any foundation for the
SelgnlOrago ana Gnefe cOulu De no
seigniorage in this case because there
had been no profit. The cost of the sill
yer bullion in the treasury was S125, ,000,-
900, and it's coinage value was $50, 000,-
oO0 That difference was the seigniorage
for which the bill provided. Tine present
market value of silver bullion in the
treasury was only $s4, 100000 SO that
there had been loss on the transaction
of SAL 900, 600. The treasury notes out
standing against the silver purchased
under the act of 1890, aggregated $780,
OOO 900, SO that the amount of loss, in
stead of gain and seigniorage, was $685.
OOO 900. There was outstanding today
of various forms Of demand obligations
1886, 00o, 600 1t was now proposed to
add to these liabilities, $55, 200, 900 and
possibly $4,000, 900. There was in the
treasury on the first of this month $107,
900, 600 in gold and 1864, 900, 600 silver
dollars. Experience had shown that
the latter could not be circulated.
There was in circulation now S54, 600, 000.
The bullion itself was worth more
in the markets of the world than the
coined dollars would be, while the coin
age would add one or one and one half
per cent TO the cost. 1t was certain that
under this bill, the whole superstrueture
of the financial system OF the country
would fall, and with it the country