The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1894-04-07

notes OF various denominations. amounting
to nearly sI56.O0o,COl which notes were
Immediately added TO the currency In cir cula
tion among our people. Such notes were by
the law made legal tender in payment OF all
debts public and private except when other
wise expressly stipulated and were made re-
ceivable for customs taxes and public dues,
and when received ay be reissued. They
were also permitted to be held by banking as
sociations as q part Of their lawful reserves. On
the demand Of The holders these treasury notes
were to be reiecmable In gold or silver coin In
the discretion OF the secretary of the treasury:
but IL was declared as part of this redemption
provision that IL was "the established policy OF
the United States To maintain the two metals
on II parity with each other upon the present
le al ratio or such ratio may be provided by
law" The oney coined from such bullion WAS
TO be standard silver dollars, nd after direct
ing the immediate coinage OF a little less than
%, ,0jO.'O) ounces the law provided that as much
OF the remaining bullion should be therea. ter
coined as night be necessary 10 provide for the
redemption Of the treasury notes issuci on its
purchase ami that am gain or seigniorage aris-
ing from such coinage shall be accounted for
and paid into tho treasury.
This gain seign orage evidently indicates
so much Of the bullion own bT the govern.
ment should remain after using sufficient
amount to coin as many standard silver dollars
rs should equal in number the dollars repre-
sented by the treasury notes issued In payment
OF the entire quantity OF bullion These treas
ury notes nov outstanding and in circulation
amount to Si5?, Ji,2D. and. although there has
been thus far bat a comparatively small amount
OF this bullion coined ct the so called gain or
scigniorage. above defined, which would
arise from the coinage OF the entire mass. has
been easily ascertained to be q quantity Of
bullion sufficient to make when coined 55 156 6Si
standard silver dollars
Considering the present intrinsic relation be-
| tween gold and silver the maintenance Of the
paritv between the two metals. as mentioned
in this law, can mean nothing less than the
maintenance OF such u parity In the estimation
and confidence OF the people who use our money
in their daily transactions Manfestly the
maintenance OF this parity can only be accom-.
plished so far as IL Is affected by these treasury
notes. and In The estimation OF the holders OF
the same, by giving to such holders. on their
redemption, the coin. whether IL Is gold or sill
yer which they prefer. 1t follows that while in
terms the law leaves the choice of coin to be
paid Oh such redemption TO the discreet ton OF
the secretary OF the treasury. the exercise Of
this discretion IL opposed to the demands of the
holder, is entirely inconsistent with the effect
i've and beneficial maintenance of the parity
between the two metals.
II both gold and silver are to serve us as
money and IL they together are TO supply our
people o safe and stable currency. the necessity
Of preserving this parity is obvious
The conditions have endeavored to present
may be thus summarized
First-The government has purchased and
now has on hand SUFFICIENT silver bullion to
permit the coinage Of all the silver dollars
necessar; TO redeem, in such dollars the treas.
ury notes issued for the purchase of said silver
bullion and enough besides to coin, Us gain or
seigniorage. 55,l5e,6sl additional standard
silver dollars.
Second-There are outstanding and now In
circulation treasury notes issued in pay yment Of
the bullion purchased amounting to sl52, ,9ji, go.
These nOtea leQul tender in navment of all
debts. public and private except when other
wise expressly stipulated, they are receivable
for customs. taxes ani all public dues, when
held by banking associations they may be
counted as part Of their lawful reserves and
they are redeemed by the government in gold
ut the option of the holders. These advantage
Gus attributes were deliberately attached TO
these notes nt the time of their issue, they are
fully understood by our people 20 whom such
notes have been distributed rs currency and
have inspired confidence in their safety aud
value and have undoubtedly thus induced their
continued and coniented use as money, instead
of AM nxiety for their redemption.
This bill consists OF two sections. excluding
one which merely appropriites n sum sufficient
tOcarry the act into effect The nrst section
provides for the immediate coinage of the silver
bullion In the treasury which represents the so
called gain or seigniorage. which would arise
from the coming OF all the bullion on hand,
which gain or seigniorage this section declares
10 Dc 1oN loo,os IL uirectS tnat tuo money 80
coined or the certificates issued thereon shall
be used in the payment OF public expenditures.
and p Divides that IL the needs Of the treasury
demands It the secretary OF the treasury may
In his discretion issue silver certificates in ex
cess OF such coinage not exceeding the amou 4
OF seigniorage in said section authorized to be
coined
The second section declares that Us soon rs
possible after the coinage of this seigniorage,
the remainder Of the bullion held by the gov
ernment shall be coined into legal tender
standard silver dollars and that they shall be
held in the treasury for the redemption oi
treasury notes issued In the purchase OF said
bullion 1t provides that rs fast as bullion
shall be coined for the redemption OF said notes
they shall be re-issued but that they shall be
cancelled and destroyed In amounts equal Il
! the coin held at any time In the treasury de
rived from the coinage provided for and thai
4 silver certificates shall be issued on such COLI
: In the manner now provided by law. 1t Is
however. especially declared In such section
! that the act shall not be construed to change
existing laws relating to the lie yal tender char
{ acter or mode OF redemption OF the treasury
notes issued for the purchase OF the silver bul
I lion TO be coined
The entire bill Is most unfortunately con
structed Nearly every sentence presents un
certainty and invites controversy Us to Its
meaning and intent The first section is es
pectally faulty in this respect and IL Is extreme
ly doubtful whether its language would permi
the contamination Of its supposed purposes
am led to believe that the promoters OF the bill
intended In this section TO provide for the coin
| age OF the blllion constituting the gain Of
seigniorage, as IL Is called, into standard silve
dollars and yet there is positively nothing IL
the section to prevent Its coinage into any de
scription OF silver coins now authorized
under any existing law. l suppose
this section was also intended ii
case the needs OF the treasury
1 al for mn fast rh.a aaiU Inro
bullion could actually be coined. TO present tn,
issue OF certificates In advance of such coinage
but its language would seem to permit the Is
suance OF such certificates to double III
amount OF seigniorage US stated. one-half o
which would not represent an ounce of silve
in the treasury The debate upon this sectio
In congress dev eloped an earnest and positiv
difference OF opinion as To its object and mean
ing. In any event, am clear that the presen
perplexfties and embarrassments OF the secre
tary Of the treasury ought not TO be augmente,
by devolving upon him the execution of u Law
so uncertain and confused
i am not willing, however to rest my objec
lion to this section solely on these grounds: IL
nv judgment sound finance does not commen
further infusion Of silver into our currenc
at this time unlccompanied by further nde
auate provision for the maintenance In GU
treasury OF q safe gold reserve.
Doubts also arise as to the meaning and con
structon OF the second section OF the bill
the silver dollars therein direct u TO be coine
are, rs the section provides, 10 he held in tn
treasury for the redemption OF treasury notes
il IS suggested that strictly speaking cer,if
Gates cannot he issued such coin "in tn
manner now provided by law" because thes
dollars are money held in the treasury for IN
express purpose OF redecming treasury note
on demand, which would ordinarily mean tina
they were set apart for the purpose OF subst
tuting them for these trelsury notes. The
are not therefore, held in such way as to fui
nish u basis for certificates according TO an
provision Of existing Law. II. however, silve
certificates can be properly issued upon thes
dollars there is nothing In the section t. ind
cate the characteristics and functions of thes
certificates. II they were TO be Of the same cha
acter as silver certihcltes In circulation unde
existing laws they would at best be receivabl
only for ustom5. taxes and all public dues
and under the language OF the section 1t Is.
say the least, extremely doubtful whether III
certificates IL contemplated would be lawful
received even for such purposes.
Whatever else may be said OF the uncertain
ties Of expression In this bill they certainl
, ought not To be found In legislation affectin