The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-04-03
rnoNrINnEn From sECoNp PAGE


States to maintain the two metals on a
parity with each other upon the pres
emit legal ratio or such ratio as may be
provided by law" The money coined
from such bullion was to be standard
silver dollars, and after directing the
immediate coinage of a little less than
twenty eight million ounces, the law
provided that as much of the remain
ing bullion should be thereafter coined
as might be necessary to provide for
the redemption of the treasury notes
issued in its purchase, and that any
gain or seigniorage arising from such
coinage shall be accounted for and paid
into the treasury" This gain on seig-
niorage evidently indicates SO much OF
the bullion owned by the government
as should remain after using a suh-
Gent amount to coin as many standard
silver dollars as should equal in num-
Der the dollars represented by the treas
ury notes issued in payment of the
quantity of bullion.
These treasury notes now outstand-
ing and in circulation amount to 1882
951, $50, and although there has been
thus far but a comparatively small
amount of this bullion coined, yet the
so called gain of seigniorage, as above
defined, which would arise from the
coinage of the entire mass, has been
easily a~scertained to be a quantity of
bullion sufficient to make when coined
fifty five millions one hundred and
ffty-six thousand, six hundred and
eighty-on standard silver dollars.
Considering the present intrinsic re-
lation between gold and silver the
maintenance of the parity between the
two metals as mentioned in this law,
a mean nothing less than the main
tenance of such a parity in the estima-
tion and confidence of the people who
use our money in their daily transac-
tions. Manifestly the maintenance of
this parity can only be accomplished,
SO far as it is affected by these treasury
notes, and in the estimation of the
holders of the same, by giving such
holders, on their redemption the coin,
whether it is gold or silver, whichthey
prefer. 1t follows that while in terms
the law leaves the choice of coin to be
paid on such redemption to the discre
ton of the Secretary of the Treasury,
the exercise of this discretion, if op
posed 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 a safe and
stable currency, the necessity of pre-
serving this parity is obvious. Such
necessity has been repeatedly con
coded in the platforms Of both political
parties and in our Federal statutes. 1t
is nowhere more emphatically recOgn
lied than in the recent law which re.
pealed the provision under which the
bullion now on hand was purchased.
This law insists upon the maintenance
of the parity in value of the coins Of
two metals and the equal power Of
every dollar at all times in the markets
and in the payment Of debts"
The Secretary of the Treasury has
therefore for the best of reasons, not
only promptly complied with every de-
mand for the redemption of these
Treasury notes in gold, but the present
situations as well as the letter and
spirit of the law, appear plainly to jus,
tify, if they do not enjoin upon him, a
continuation of such redemption.
The conditions l 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 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
seigniorage, ffty-fve million, n hun
dred and fifty six thou sand six hundred
and eighty-one additional standard sill
yer dollars.
Second. There are outstanding and
now in circulation treasury notes issued
in payment of the bullion purchased
amounting to 1852, 951, $50. These notes
are legal tender in payment of all debts
public and private, except when other
wise expressly stipulated, they r re
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
are redeemed by the government in
gold at the option of the holders. These