Evening star., 1894-02-09
TALKING SILVER.
Mr.. Bland Explains His ssigniorage
Bill to the House.
WANTS TO COIN ALL TREASURY SILVER
Representative Stone Presents the
Views Of Hard Money Men.
A REACH OF FAITH

A ACH OF FAITH
tangle growing out Of an error in the
important roll call by which the House yes
terday went into committee Of the whole
on the Bland bill opened the proceedings
in the House this morning. Mr.. Babcock
CWis) explained that he had not voted
upon that roll call and Mr.. Tracey and
Mr.. Reed attempted to make the point that
this broke the quorum and the subsequent
proceedings of yesterday were therefore
vitiated. 1t was discovered. however. that
Mr.. Marshall (Va) and Mr.. Shell Is. CO
were recorded as not voting and as their
votes would complete the quorum no fur
ther objection to the approval Of the jour-
nal was made.
Mr.. Bland Explains His Bill.
After some unimportant routine business,
on motion of MIR. Bland, the House went
into committee of the whole for the con-
sideratIon of the oeigniorage bill. Mr..
Bland explained in q few words that he had
never agreed as stated in some Of the pub
lie prints to striking out the second Sec
ton of this bill (Which provides for the
coinage of all the bullion in the treasury.
Aside from the question of raising revenue
he regarded the second section as more
important than the first. III we are 70
deal with the bullion in the treasury, said
he. let us deal with 1t as a whole we
have already repealed the purchasing clause
Of the Sherman act No more bullion VIII
come into the treasury. Why should we
rot coin what is there? To coin only the
mount to declaring that the rest should
remain there as worthless 1t should be
dedicated 70 monetary use. AS far as l
am concerned" said he, i never VIII con-
70 Sfn holf
What advantage" asked Mr.. coombs
(N.Y). would accrue from the coinage OF
this bullion, when no one wants it?'
get" replied Mr.. Bland. The difIiculty is
that there is not enough money in circula'
tion."
Mr. Tracey's Question.
rs 1t the intention after this bill goes
into effect" inquired Mr.. Tracey N.Y). ito
redeem the silver certificates in gold?''
DO you understand that silver certifi-
Gates are redeemable in gold?" asked Mr..
Bland in turn.
II do"
WELL" replied Mr. Bland. the Secretary
Of the Treasury has never so held. Every
Secretary Of the Treasury has maintained
that all that was necessary to keep all
classes Of our currency at par was TO keep
the greenbacks at par. They are gold obli-
cations, and are therefore interconvertible,
and while silver certificates have not been
redeemed In gold greenbacks have never
been refused for them. This keeps all our
currency at par. 1 am speaking now from
the standpoint Of a gold monometallist.
Proceeding he declared that 1t was only
necessary to keep enough gold in the treas
ury TO meet foreign exchanges. Under the
Sherman law he insisted that every dollar
Of the treasury notes outstanding was re-
deemable in silver.
II He Were Secretary.
"And II were Secretary Of the Treasury
should SO hold" he added emphatically.
Il would not use my discretion in the in
terest Of the gold gamblers Of this coun-
try. This bill. however" he continued.
does not go as far as the Sherman law
in this respect. 1t only provides that hav-
ing been redeemed dn gold or otherwise)
these notes shall not be reissued. but shall
be destroyed and coin shall take their
place. In other words. the holders will
no longer be able to force their redemption
again and again in gold" Applause.)
Mr.. stones Reply.
Mr.. c. w. Stone Of Pennsylvania, who is
at the head of the minority Of the commit
tee on coinage, weights and measures re-
piled to Mr.. Bland. He agreed. he said,
with Mr.. Bland that If the first section Of
the bill were to be passed, the second Sec
tion should be. IF we are prepared to
agree to the practical embezzlement Of a
trust fund in the first section" said he,
I'VE should not hesitate at the irregularity
contained in the second section"
He contended that there was no existing
seigniorage, that 1t was purely imaginary
as yet. Seigniorage, he said, was the profit
arising to the government out Of the coin
age of bullion. But the bullion not having
been coined there was no seigniorage. There
might be In time. but there was not now.
one might as well take out Of a tank ten
gallons of oil and say this is paraffine ana
that Is oil. or chop off fifty pounds from a
bullock and say this is leather and that
Is beef, because In future process SO much
pc raf1ne or so much leather could be sen.
arated from a tank Of oil or a bullock as to
claim that there was so much bullion and
so much seigniorage before the bullion was
coined.
Would Be Breaking Faith.
To attempt to coin this imaginary seig-
niorage would be breaking faith with hold
ers OF treasury notes issued against all the
bullion. He declared that it should be held
sacred for the re-redemption. There were
IN the treasury liO.G S53 ounces of silver,
on which had been issued sl53 ,0S5 l51 treas
ury notes. 1t cost the government SI26.-
'oS.GSo. and its coinage value was $751;
ol4.9Gl. and its present market value but
s',l56o'2. To coin this alleged seignior-
S3o"coOoo worth Of bullion behind the
treasury notes. His apprehension was that
this policy would involve the country in
financial ruin. Behind each silver certif-
cate was silver dollar. If S55 5oUOOOO of
additional treasury notes We're issued, as
required by the first section Of this bill
without dollar for which certificates were
issued being deposited in the treasury each
certificate would bear on it's face a lie 1t
was in effect watering the treasury notes
to the extent of s55OOO,O0O, when the face
value Of these notes already exceeded the
market value of the bullion security te-
hind them by over S56.0O0,OOO.
The free gold in the treasury (s65 600 nOO,
he asserted, today was confronted With
the obligation of reieeming $500 900 900 in
gold certificates, $40 600 600 in greenbacks
and sll6,OOO,0O0 in silver certificates
Redemption of Treasury Notes.
The redemption of the treasury notes. if
1t were to occur in gold. would wipe out the
gold reserve and force another bond issue;
IL in silver. the public credit already
wrenched by the flood Of silver. might be
seriously impaired He believed that this
bill would be remodelled or defeated
He did not believe the democrats would
dare to send to the White House or the
people bill tainted with dishonesty. II
the government needed money. why did 1t
not frankly and honestly borrow it instead
Of pilfering from a trust fund.
In conclusion, in speaking Of the silver