The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1894-04-04
made receivable for customs, taxes and


permitted to be held by banking
associations as a part of the lawful re-
serves. On the demand of the holders
+ these treasury notes were to be re-
deemed in gold or silVe. coin in the
discretion of the Secretary OF the
Treasury, but it Was 'the established
policy of the United States to maintain
the Two metals on parity with each
other upon the present legal ratio as
may be provided by law."-
MEANING OF The sEIGNIoRAGE PRO-
VISION.
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 remaining bullion should be
thereafter coined as might be necessary
for the redemption of the treasury
note issued on its purchase, and that
"any gain or seigniorage arising from
such coinage shall be accounted for and
paid into the treasury
This gain. or seigniorage evidently
indicates so much of the bullion owned
by the Government as should remain
after using sufficient amount to coin as
many standard silver dollars as should
equal in number the dollars represented
by the treasury notes issued in pay
ment of the entiere quantity Of bullion
MEANING oFMAINTENANcE OF PARITY.
Considering the presen5 intrinsic
relation between gold and silver the
maintenance of the parity between the
two metals, as mentioned in this law,
can mean nothing less than the main
tenance ofsuch party in the limita-
ton and in the estimation of the con-
fidence of the people who use our
money in their daily transactions. Man.
.ifestly the Maintenance of.this pa ity
can only be accomplished so far as it is
affected by these treasury notes, and in
toe estimation of the holders of the
same by giving to such holders on their
redemption the coin. whether it is gold
or silver, which they prefer. It follows
that while in terms the law leaves the
choice ofcoin to be paid on such redemp-
ton to the discretion of the Secretary
of the Treasury, the exercise of this,
discretion, if opposed to the terms of
the holder, isentirely inconsistent with
the effective and beneficial mainten-
ance of the parity between the two
metals.
SILVER CERTIFICATES REDEEMABLE
IN GOLD.
II 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 preserv-
ing this parity is obvious. Such neces
sity has been repeatedly conceded in the
platforms of both political parties and
in our Federate statutes. It is no.
where more emphatically recognized
than in the recent law which repealed
the provision uader which the bullion
now on hand was purchased. 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 market and
in the payment of debts" The Sec
retary Of the Treasury has, therefore,
for the best of reasons, not only prompt
ly complied with every demand
for the redemption of these treasury
notes in gold, but the present situation,
as well as the letter and spirit Of the
law, appear plainly to justify, if they
do not enjoin upon him, continuation
of such redemption.
THE STATUS OF THE QUESTION.
The conditions have epdeavored to
present may be thus summarized:
First. The Government has pur-
chased and now mas on hand su fhcient
silver bullion to permit the coinage of
all esilver 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
ffty-fve million and one
hunderd ffty-six thousand and eighty
one additional standard silver dollars.
Second. There are outstanding and
now in circulation treasury notes Issued
in payment of the bullion purchased
amounting to sl52,95l ,2So. These notes
are egal tender in payment of all
debts, pdblic and private, except when
otherwise expressly stipulated, they
are receivable 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 advantageous attributes were
deliberately attached to these notes at
the time of their issue, they are fully
understood by our people to whom such
notes have been distributed as current
and have inspired confidence in their
safety and value, and have undoubted-
lv thus induced their continued and
contented use as money instead of an
anxiety for their redemption.