The morning call., 1894-03-30


ing the amount OF the seiguiorage in said Sec
! tion authorized TO be coined.
The second section directs that as soon as
possible after the coinage of this seigniorage
The remainder of the bullion held by The Gov
eInmenl shall be coined into legal tender stan.
dard silver dollars, and that they shall be held
in The tr asury for be redemption OF treasury
notes Issued TO purchase SAID bullion. 1t pro-
vldes that fast the bullion shall be coined
for The redemption Of said nOtes they shall not
De reissued, but shall be Cancelled and de-
siroyed III amounts equal 10 The coin held al
any time in the treasury derived from The coin
agr provided for, and that silver certificates
shall be issued on such coin in The manner now
provided by law. 1t Is, however. especially de-
clared in said section that the act shall not be
construed TO Change the existing laws relating
10 the legal nder character OF mode of re-
demption of the treasury EOtes Issued for the
purchase of silver bullion 10 be coined.
The entire bill Is most unforlun stely con-
structed. Nearly every sentence presents I'M
certainty and Invites cont OVersy as TO It's
meaning and intent The first section is espe-
claly faulty IN tins respect, and ii is extremely
doubtful whether It's language will permit the
consummati0n OF its supposed purposes.
Doubts also arise as 10 the meaning and con-
struction of The second section OF the bill. II
tile silver dollars therein directed 10 be coined
are, as the section provides, 10 be held in ine
treasury for the redemption of treasury notes,
IL Is suggested that. strictly speaking, the GER
tifcates cannoi be issued Oh such coin ''In The
manner now provided by law" because these
collars are money held In the treasury for the
express DurDose of redeeming the treasury
notes on demand, which would ordinarily mean
that they are set apart for the pur Ose OF sub
situting them for these treasury notes. They
are not, therefore, held In such way as II fur
nsh a basis for certificates according 10 any
provision OF existing law. II, however, silv
certificates can properly be issued upon these
dollars, there is nothing IN the section 10 indi-
cate the characteristics and functions OF these
certificates. II they were to be of the same
character as the silver certificates In cTcula-
tion under existing laws, they would at besl be
receivable only for customs, taxes and all pub
lie dueS; and under the language OF ibis section
1t Is. 10 say The least. extremely doubtful
whether the certificates IL contemplated can be
lawfully received even for such purposes.
Whatever else may be said of The uncertain
ties OF the expressions in this bill, they GER
talDly should not be found IN legislation affect
ing uDject so important ana far-Teaching as
our finances and currency. In stating other
and more Important reasons for my disapprOval
OF this section, / shall. however assume that
under its provisions treasury notes issued in
payment for silver bullion will continue to be
redeemed as heretofore. in silver or gold, at
the option OF the holders. aud that If when they
are presented for redemption or reach the
treasury In any other manner, there are in the
treasury coined silver dollars equal IN nom-
inal value to such treasury notes, then and In
that case the notes viii be destroyed, and silver
certificates 10 an equal amount substituted.
am convinced that this scheme is i'll advised
and dangerous. AS the ultimate result of It's
operation treasury notes, which are legal ten
ders for all debts public and private. and which
are redeemable in gold or silver at The op lou OF
the holder viii be replaced by silver certificates
which. whatever may be their character aud
description. VIII have none of these qualities.
10 anticipation of this result, and as the imme-
dlate effect, treasury notes will naturally ap-
preciate in value and q STABILITY. The fact
that gold can be realized upon them, and The
fact that their destruction has been decreed
when they reach the trr asury, must tend TO
their withdrawal from general circulation, TO
be Immediately presented for gold redemption,
or 10 be boarded for presentation at a more
convenient season. The sequel of both opera
tions will be large addition 10 the silver cur
rency In our circulation and corresponding
reduction OF gold In the treasury
The argument has been made that these
things VIII not occur at once, because a long
time must elapse before the coinage of anything
but segniorage can be entered upon. IL the
physical effects OF the execution of the second
section of this bill are not 10 be realized until
far IN the future. this may furnish a strong
advance; but The pOstpOnement OF It's actual
oneratlon cannot prevent the fear aud loss
of confidence and nervous prostration which
would Immediately follow its passage and bring
about the worst consequences.
regard this section of this bill as embodying
a plan by which the Government will be
obliged TO nay out lis scanty store OF gold for
no other purpose than 10 force an unnatural
addition OF silver money into the hands of our
people. This is the exact reversal of the policy
which SAT- nnaDce dictates, II we are to pre-
serve a parity between gold aud silver
and maintain sensible bimetallsm. We
have now outstanding more than $685.
OOO,OOO IN s'lfCi CSt tluCdtcSs lSSucu un-
der existing laws. They are serving the
purpose OF money usefuily and without ques-
tioD. Our gold reserve. amounting to only a
little more than 100000, 600, is directly
charged with the redemption of S346, ,O00 600
OF UniIed States notes When it is proposed 10
Initiate our silver currency 1t is time for the
strengthening OF our gold reserve instead of its
de DletOn.
/ cannot conceive Of a longer step toward sill
yer monometallism than we taxi when we
spend our gold to buy silver Gel tifcates for cir
culatiOD, especially in view OF the practical
difficulties surrounding the replenishment OF
our gold.
This leads me TO earnestly present the desir-
ability OF granting he Secretary OF the Treas
Ury better power than now exists TO issue
bonds TO protect our gold reserve when for any
reason it should be necessary. Our currency is
in such confused condition, and our financial
affairs are apt TO assume At any time so critical
position, that 1t seems TO me such a course
should be dictated by ordinary prudence.
am not insenslble to The Arguments in favor
OF the coinage OF the bullion selgniOrage now in
the treasury. and | believe u could be done
safely and with advantage II the Secretary OF
the Treasury had power TO issue bonds at a
low rate of interest, under authority, in substi-
tuition OF that now existing. and better suited 10
the protection OF the treasury.
/ EODe way will present Itself in the near
future for the adjustmedi OF our monetary
affairs In such a comprehensive and eOnserva-
tive manner as will afford TO silver its proper
place IN our currency. But 10 the meantime /
am extremely sOlicitous that whatever clion
we take on this subject may be such as TO pre-
vent loss anG discouragement 10 our people at
home and the destruction of confidence In our
financial management abroad.
GROVER CLEVELAND.