The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1894-03-30

aestToy. the returning faith and confidence
10 cur soand financial tendencies. and
~ .ssss. ss eoaseaasaee. eur progress 20 re-
newell business health would be urforta-
nafely checked and return TO our recent
distressing plight Seriously threatened.
iaas proposed legislation is So nearly
relased 10 the currency conditions growing
out oi the law compelling the purchase OF
sisser oy tie government that a glance a.
slca condsfious and 3 partial review OF
fhe iss reaerrcd 20 may not be rnprois.-
aoie. Between August IA. iSu, when the
law became operative, and November l.
tSs. when the clause IL contained direct
Ing the purchase OF silver was repealed.
there were purchased by the secretary OF
the treasury more than lSSo0 90 ounces
OF silver bullion In payment for this
bullion the government issued treasury
noscs OF various denominations amount
ing 10 nearly $iss. .os0. 600. which notes were
Immediately addict 10 the currency in
Circulation among our people. Such notes
were oy law msde legal tender in payment
OF All debts, public and private. except
when otherwise expressly stipulated. and
were made receivable for customs. taxes
anu all public dues, and when SO received
might he rcissued. They were also per-
mii,ed to De held by banking associations
as part OF their lawful reserves. On de-
mand oi holders these treasury notes were
TO be redeemed In gold or silver coin in
the discretion of the secretary of tho treas
ury, but 10 Was declared as a nart of
this redemption provision, that IL was the
established policy Of the United States
10 maintain the two metals on . parity
Nith each other upon the present legal
ratio or suth ratio may be provided by
law. The money coiued from such silver
was TO be standard silver dollars. and AZ
ter directing the Immediate coinage of q
little less than 2S.0op.ul ounces the law
provided that a. much Of the remaining
bullion should be thereafter coined as
might be necessary To provide Tor the re-
demptlon OF the treasury notes issued for
ITS purchase, and that any gain or s~ign-
forage arising from such coinage should 10
accounted for and paid into the treasury.
This gain or seigniorage evidently indi-
Gates so much of the bullion owned by the
government as remains after using a suf-
hcient amount To coin as many standard
SILVER dollars as should equal in number
the dollars represented by the treasury
notes issued In payment for the entire
quantity OF bullion. These treasury notes
now outstanding and in circulation amount
To $i52, ,aai. $50. and although there has
thus far been but comparatively small
amount of this bullion coined, vet the So
called gain or sesgniorage as above dc-
fined. which would arise from the coinage
OF the entire mass. has been easily ascer.
tanned TO be aquantity of bullion sufficient
to make when coined IS, ,6sl standard
intrinsic relation between gold aud
silver. the maintenance Of q par
ty bctwesn the two metals, 40
mentioned in this law, can mean moth
ing less than the maintenance OF such Q
parity in tn. estimation and confidencs of
the people who use our money In daily
transaction. Manifestly tho maintenance
OF this parity can only be accom- plished
so far - il Is affected by these treasury
notes and in the estimation of the holders
OF the same, by giving such holders. Oh
their REDEEM ption. the coin. whether gold
that while in terms the law leaves the
choice OF the coin TO b paid on sueh re-.
demption to the discvstiou Of the secrc.
tary Of the treasury. the exercise Of this
discretion. II opposed 10 the demand OF
the holder. II entirely incousistsut with
of parity between the two metals. IL
both gold ard silver are TO serve US a.
money and II they together are 10 supply
TO our people . safe, stable currency, the
necessity Of preventing this parity in OBJ
vious. Such necessity has been repeatedly
conceded in the platforms Of both political
parties. and in our Federal statutes 10 IL
nowhere more smphsticaliy recognised
than in the recent Law which repealed the
provision under which the bullion now
on hand was purchased. This Law insists
upon the maintenance OF parity
in the value Of the coins Of
the two metals and the equal power Of
every dollar At oil timss In the markets
ana in payment OF debts The secretary Of
the treasury has, therefore. for the best rea-
son not only complied with every demand
for the redemption OF these treasury notes
in gold. but the present situation. - welt
as the letter and spirit OF the law, appear to
plainly justify. Ii they do not enjoin upon
him continuation OF such redemption.
The conditions l have endeavored TO pre-
sent may be thus summarized:
"First-The governments has purchased
and now has on hand sufficient silver bull
lion 20 permit the coinage of all the silver
dollars necessary to redeem IN such dol
lars the treasury notes issued for the pur-
chase OF said silver bullion and enough be-
side TO coin s. i56.osi standard silver
dollars.
"Second--There are outstanding and
nov in circulation treasury notes issued
in payment OF bullion purchased amount
ing TO si52. .95l.2so. The notes are legal
tender in pay ment OF all debts public and
private, except when otherwise expressly
stipulated. They are receivable for cus-
toms. taxes and all public dues: when
held by banking associations they may be
counted as part OF their lawful reserve.
and are redeemsble by the government in
gold q. She option OF the holder. These
advantageous attributes were deliberately
attached to these notes Mt the time they
were issued. and they are fully understood
by our people, To- whom such notes have
been distributed a. currency, and have In
spired confidence la theis safety aud
value. and have undoubtedly thus induced
their continued and contented use ~
money instead Of anxiety for their 70.
demption. @
sHaving referred to some incidents
which deem relevant to the subject, ig
remains for me TO submit a specific state
ment of my objections To tho bill now
under consideration. This bill con-
slsta Of two sections, excluding ths
one which merely appropriates . snns
sufficient TO carry the act into
effect. THE first section provides
for the immediate coinage OF the silver
bullion In the treasury. which represents
the so-eailed gain or seigniorags which
would srise from coming all the bullion
on hand, which gain or setrniorage this
section declares to be So, i56.est. II d.
rects that the money 90 coined, or the
certificates issued thereon. shall be used
in payment Of public expenditures. and
provides that If the needs OF the treasury
demand 1t the secretary OF the treasury
may, in his discretion, issue silver ceYttA.
Gates ia excess OF such coinage. not er-
ceeding the amount ci ssigniorage in ssid
section authorized TO b coined. The
second section directs that as soon a pos-
sibls after the coinage Of this ssigniorays
the remainder of the bullion held by the
government shall be coined into legal
tender standard silver dollars, and they
shall be held IN the treasury for the 70.
demption OF treasury notes Issued in the
purchase OF said bullion. Is provide,
that a. fast ~ the bullion shall be coined
for REDEEM ption Of said notes they shall
not BE- rcissued, bus shall b. caneeled
and destroyed In smocnts eQuai 10