The Cape Girardeau Democrat. (Cape Girardeau, Mo.) 1876-1909, 1894-04-07

certificates shall be issued on such coir u
] the mauret now provided by law. IL Is,
however, especially declared In said section,
| tpat the ~ shall not be construed 20 change
| existing laws teitstry TO the. legal tender
.bsracter or mode OF Tedeniption cf the treas
| ury notes issued for the purchase OF Tie !Se7
The entirS h,iI Is most unfortuHatels con-
structed. Nearly ey..y s-T.anen- lTesenls qn'
certainty and invites controversy - to "
meaning and intent. The first section is e.
pcciHlly faulty in this respect. and It Is ex.
tremely doubtful whether its language VIII
hcruIit the consummstion OF is supposed pur-
poses am led 70 9eiieye that the E.emote.s
for the coinage o; the bullion csnsritu,ing the
gain or seign;orage. as it is called, fnf1
standard dollars; and yet there Is positive.
y nothing in the section TO prevent
coins now authorized under any existing law.
/ suppose this section was also intended in
case tho needs Of the treasury called for
money faster than the seigniorage bullion
cfrld actually IL coined. to permit the issue Of
silver certihratsstn Fdvance Of snch coinage;
but its language would seem TO permit the is:
suance of such certificates 10 double the
amount of the seigniorage as stated, one-h han
of which would not represent an ounce of sill
yer in the treasury. The debate upon this Sec
tion in the congress developed an earnest and
positive difference OF opinion as TO its object
and meaning. In any event l am clear that
the present psrpleKities and emharrassmentS
of the secretary OF the treasury ought not to he
tiSri n q law 20 uucertain and confused tenor.
sm not hsTeyer, willing % rest NY o5je-:
tion to this seciicn solely On these. In my
judgment sound finance does n6t commend .
further infusion of silver into our currency ut
this time unaecompaned by further adequate
provision for the maintenance in our treasury
OF safe gold reserve.
Doubts also arise to the meaning aad con-
structiOn OF the second section Of the bill II
the silver dollars therein directed To be cOinci
htr, u the section provides. to be held in
the treasury tot the redemption OF
treasury notes. il Is suggested that strictly
speaking. certificates can not be issued or
such coin in the manner now provided by
law" because these dollars are money held in
the treasury for the express purpose of re-
deeDlng treasury notes, on demand, which
woafi ordinarily mean that they were set
apart for the PURPOSES OF substituting them for
these treasury no,es. They are not, therefore,
held in such n wat rs TO furnish 4 basis fcf
certificates according TO any provision OF et-
isting law. II even silver certificates cad be
properly Issued upon these dollar5, there is
nothing 10 the section to indicate the ci -
actcristics aud functions of these certificates
IL they were TO lie of the same character
as silver certificates in circulation under ex-
listing laws they would at least be receivable
only for customs, taxes and all public dues;
and under the language of this section il Is. to
say the least. extremely doubtful whether the
certificates It COntemplates would be lawfully
received even for such purposes. Whatever
else may - said OF the uncertainties of ex-
preston in this bill, they certainly ought not
10 be found In legislation affecting subjects so
important and far-reaching as our finances and
cuIfeecs
In Stating otLeT rIj iuofe ifn7priaut reasons
for my disappr0yal Of this section shall. how
ever. assume that under its provisions The
treasury notes issued in payment for silver
bullion will continue to be redeemed as here
toforo in silver or gold at the option of the
holders: ard that If when they are offered for
redemption. or reach the treasury in any other
manner. there are in the treasury coined sil.
dollars equal in nominal value
TO such treasury notes. then. and
in that case, the notes will be
destrnyc and silver certificates to an amount
lie substituted [ AM convinced that this
scheme is ill-adyiSed and dangerous. As an
ultimate result Of its operation. treasury notes,
which are legal tender for all debts public and
private. and which are redeemable in gold or
silver. Rt the option Of the holder, will lie re-
placed by silver certificates which, whatever
Lras be ihair chara, ter aud declaration. will
have none o. these qualities. In an
ticipation of this result and ts IN i'm,
mediate effect. the treasury notes Will
naturally appreciate in value and desiratility.
and the further fact that their destruction has
been deer ed when they reach the treasury.
must lend to their withdrawal from general
circulation to be Immediately presented for
redemption or TO be boarded for presentation
at a more convenient season. The sequal OF
both operations will he 4 large addition TO the
silver currency in our circulation and
corresponding reduction of gold in the
that these things will not occur at once he
cause long time must elapse before the coin
age of anything but the seigniorage can be en-
tered upon. II the physical effects OF the ex-
ecutioa OF the second section OF this bill arc
not TO he realized until in the far future. this
may furnish n strong reason why 1t should not
be passed so much In advance; but the post
pouemcnt Of its actual operation can not pre-
vent the fear anu loss of confidence and nerv-
Gus precaut;on which would Immediately follow
its passage and bring about its worst conse-
sfnFt ~ I - NJ n
plan hy which the government
will be obliged TO pay out its scanty score OF
gold for no other purpose than to force an I'M
natural ad litiOl of silver money IN the hands
OF our people. This is an exact reversal of the
policy which safe finance dictates il We are TO
preserve parity between gold and silver and
maintain sensible bi-metalliSm.
We have now outstanding more than 1884,
00OO in silver certificates issued under exist
Ing laws They are serving the purpose OF
money usciully and without question. Our
gold res rye amounting to only little more
than SIOJ0 OGD. is directly charged with the
OF St46!0OOW of United States
notes When it is proposed to initiate our sill
yer currency II is time for STRENGTHENING
Our gold reserve instead of depicting it, 1 can
not conceive of longer step toward silver
than we take when We spend
our gold to buy silver certificates for clrcule-
tion, anI especially in view OF the practical
difficulties surrounding the replenishment OF
our gold.
This leads me TO earnestly present the de-
slrabiiity OF granting 10 tnc
Of the treasury better power than
now exists to issue bonds to pro-
tect our gold reserve. when for any
reason IL shOllt be necessary. Our currency Is
in such confused condition. and our financial
Affairs are apt to assume n any time so critical
d position. that it seems to me such n course is
dictated 10y ordinary prudence
/ am not InsensIble 10 the arguments in favor
Of coming the bullion seigniorage now in the
treasury. aud believe ii could he done safely
and with advantage, If the secretary OF the
treasury had the power to issue bonds at low
rate OF interest. under authority in suhstitu-
lion of that now existing. AMI better suited to
he protection OF the treasury.
l hope a way wiz present itself IN the near
'UturC for the adjustment of our monetary af-
Tairs in such n comprehensive and conserva-
live manner as will accord TO silver its
proper place in our currency; hut in
Inc meantime / an extremely soliCitiOus
hat whatever action We take on this subject
nay lie such as to prevent loss and discourage
ncnt to our people at home and the destruc-
ion OF confidence in our financial management
lbrOad. GROVER CLEVELAND.
Executive Mansion. March -. 1891