Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1894-04-06

- tti6 UiluilCiiti iHtCi.ViCH8
indicated by our recent repeal Of the pfovis
ions forcing silver bullion purchases that it
would weaken if it did not destroy Returning
| faith and confidence in 0Ur soiind financial
tendencies, and that as consequence biir
progress to renewed business health would be
unfortunately checked and a return to our
recent distressing plight seriously threatened
I This proposed legislation is so related to
the currency conditions growing out Of the
| law compelling the purchase of silver by the
government that glance at such conditions
and a partial review of the law referred to
may not be Improbable.
| Between the 14th day Of August, 1890, when
the law became operative, and the 1st day Of
| November, 1898, when the clause it contained
directing the purchase of silver was repealed,
there were purchased by the Secretary of the
Treasury more than 1Gs, 600 600 OF ounces of
silver bullion. In payment for this bullion
the government issued It's Treasury notes of
various denominations, amounting to near
ly Sl56, 100000. which notes were Immediately
added to the currency in circulation among
our people. Such notes were by the law made
legal tender in payment Of all debts public
and private, except when otherwise expressly
stipulated, and were made receivable for Gus
toms, taxes, and all public dues, and when
so received might be reissued. They were
also permitted to be held by banking asso-
Citations as part Of their lawful reserves. On
the demand of the holders these Treasury
notes we're to be redeemed in gold or silver
com. in the discretion of the Secretary of the
Treasury. but it was declared that it was
"the established policy of the United States
to maintain the two metals Oh parity with
each other upon the present legal ratio or such
ratio as maybe provided by law
The money coined from such bullion was to
be standard silver dollars, and after directing
the immediate coinage of little less than
twenty-eight million ounces, the law provid-
ed that as much of the remaining bullion
should be thereafter coined as might he nee
essary to provide for the redemption of the
Treasury notes issued OH its purchase, and
that "any gain or seigniorage arising from
such coinage shall be accounted for and paid
into the Treasury" This gain OF seigniorage
evidently indicates so much OF the bullion
owned by the government as should remain
after using sufficient amount to coin as ma
ny standard silver dollars as should equal in
number the dollars represented by the Treas
ury notes issued in payment Of the eftire
quantity of bullion. These Treasury notes
now outstanding and in circulation amount to
81 ,95l, $50, and although there has been thus
far but comparatively small amount of this
bullion coined, yet the so-called gain or seig-
niorage, as above defined, which would arise
from the coinage of the entire mass has been
easily ascertained to be a quantity Of bullion
sufficient to make when coined 55,156,6S,
standard silver dollars.
PARITY BETWEEN THE METALS
Considering the present intrinsic relation
between gold and silver the maintenance of
the parity between the two metals, as men
toned in this law, can mean nothing less than
the maintenance OF such parity in the esti-
nation and confidence OF the people who use
our money in their daily transactions Man
ifestly the maintenance of this parity can
only be accomplished, SO far as it is affected
by these Treasury notes, and in the estima-
ton OF the holders of the same. by giving to
whether it is gold or silver, which they pre-
Ter 1t follows that while in terms the law
leaves the choice of coin to be paid on such
redemption to the discretion OF the Secretary
of the Treasury, the exercise of this discre
ton, if opposed to the demands of the holder,
is entirely inconsistent with the effective and
beneficial maintenance of the parity between
the two metals.
If both gold and silver are to serve us as
money and if they together are to supply to
our people & safe and stable currency, the ne
cessity Of preserving this parity is obvious.
Such necessity has been repeatedly conceded
in the platforms of both political parties and
in our Federal statutes. 1t is nowhere more
emphatically recognized than in the recent
law which repealed the provision under
which the bullion now on hand was purchas
ed. This law insists upon the maintenance
of the parity in value of the coins of the two
metals and the equal power of every dollar
at all times in the markets and in the pay
ment of debts"
The Secretary Of the Treasury has therefore
for the best of reasons, not only promptly
complied with every demand for the redemp
ton of these treasury notes in gold, but the
present situation, as we'll as the letter and
spirit of the law, appear plainly, to justify,
if they do not Ell Join upon him, a continuation
of such redemption.
The conditions have endeavored to present
may be thus summarized:
/. The government has purchased and now
has on hand sufficient silver bullion to permit
the coinage Of all the silver dollars necessary
to redeem, in such dollars, the Treasury notes
issued for the purchase of said silver bullion
and enough besides to coin, as gain or seig-
norage, 81, 156, GSl additional standard silver
dollars.
2. There are outstanding and now in circu-
lation Treasury notes issued in payment OF
the bullion purchased amounting to $l52, $751;
$50. These notes are legal tender in payment
of all debts, public and private, except when
otherwise expressly stipulated; they are lie
ceivable for customs, taxes, and all public
dues; when held by banking associations
they may be counted as part of their lawful
reserves, and they arc redeemed by the gov
eminent in gold, at the option of the holders
These advantageous attributes were deliber-
ately attached to these notes at the time of
their issue; they are fully understood hy our
people to whom such notes have been distrib-
uted as currency, and have inspired conf
dence III their safety and value, and have I'M
doubtedly thus induced their continued and
contented use as money, instead of anxiety
for their redemption
STATEMENT OF OBJECTIONS
Having referred to some incidents which
deem relevant to the subject, it remains for
me to submit a specific statement of my OBJ
jections to the bill now under consideration,
This bill consists of two sections, exclud-
ing one which merely arpropriates a sum sui
feient to carry the act into effect The first
section provides for the immediate coinage of
the silver bullion in the Treasury which rep
resents the so-called gain or seigniorage, OF
which would arise from the coinage Of all the
bullion on hand, Which gain OF sejgniorage
this section declares to lie sos, 1856 6S1. 1t di-
reefs that the money SO coined OF the certiti-
Gates issued thereon Shall be used in the pay