New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-27
SEIG NORGE IND REPTDIiIION

SEIGN NORGE IND REPUDIdTION
Does the country want more silver agila'ion'
more delay and uncertainty: President Cleve-
land has declared that business needs, above
AL things an end Of doubt about the sound
ness Of the currency. That it needs even more
an end of tariff agitation he mistakenly denies,
and he must be expected TO act upon his own
convictions. But if an end of monetary uncer-
tainty is the one thing necdful what means me
report that he is about 10 veto the Blaiid OH
because of its palpablc errors Of detail mean
while assuring the silver men that II they pass
a simple bill to coin the scignioraGe he VIII
approve it? Surely he cannot be ready by sucn
Il suggestion 10 expose the country to months
more Of delay and doubt. in the hope OF WIN
ming to his party silver men who. MI Biahd
declares. will not be satisfied with the vacuum
bill as it stands. That would indeed be most
dscrcditablc sacrifice Of public interests to par
tisauship. Business men of all parties on the
contrary. hope that the President Will stand
untinchingly in the position taken by his last
message on this subject. and will maintain mat
further monetary agitation at this time must
be perniciouS 10 public interests
There is a laborcd effort now to create the
impression that the mere coming Of the scgnor-
age however unnecessary or unwise. would not
be Il breach of good faith nor would 1t do scri-
Gus harm. The Sherman act itself, men say
provided for coming the bullion purchased ana
that ANY gain or seigniorasc arising from s'lch
coinage shall be accounted for and paid into
tbc Treasury" This is n misrepresentation.
The Sherman act has only this provision Tor
coming of silver after July l. 1S9l: lie snail
coin of the silver bullion purchased under the
provisions of this act as much rs may be neces-
sary to provide for the redemption OF III"
Treasury notes herein provided for As long
as 10 redemption In silver coin is asked ny
anybody. or contemplated by the Treasury, 10
coinage whatever is necessary 10 provide Tor
such redemption. Therefore none is authorized
until a change in the wishes of notcholderS or
an involuntary change in the plans or III"
Treasury shall make ii necessary to provide Tor
REDEMPTION of Treasury notes In silver coin
This being clear and indisputable. the pro
vision regarding the scignOrage has III" sam"
limitation. IT applies exclusively 10 the "a II
which may arise if ana when II becomes nccrs-
sary to coin silver for redemption OF Treasury
notes Every other Interpretation OF the act
ignores the following explicit provision: "Bn'
no greater or less amount OF such notes snail
be outstanding ut any time than the cost OF the
silver bullion and the standard silver dollars
coined therefrom. then held in the Treasury,
purchased by such notes No greater; not Il
dollar of notes shall be issued without silver
costing ST held in the Treasury. No less If any
of the notes are redeemed in gold or PAD In Tor
taxes. they may be paid out again, ana snail
remain legally outstanding as long as the Dull
ion costing the same amount Is held. Further
the issue permitted and required must he ex-
actlv the "cost"-not the nominal or the market
value-of the bullion or silver coined therefrom
After any part has been coined there must sui
be held for every 500 Of notes issued bullion
and silver dollars in the Treasury costing
500 and not dollars Of the nominal value OF
500. leaving $50 or $40 Of the coins 10 be used
for something else
If is n well-kn0wn principle that Il law must
be interpreted, if possible, in accordance with
each and all Of its provisions. This provision
above quoted cannot be observed and ODeyed
without constituting the precise quantity OF sill
yer purchased with Treasury notes Il reserve
held for their redemption in case redemption
In silver should be demanded or unavoidable.
The President is therefore in error II he Is
correctly reported as saying that there would
be no breach of faith in taking away part OF
the silver so purchased and pledged, and divert
ing IL to other uses. 1t would be distinct vio-
laiion Of the provision under which the notes
went into circulation. namely, that the amount
of notes outstanding should not at any time
be greater than the cost OF the silver bullion.
or dollars coined thcrefrom, then held in the
Treasury. purchased by such notes. When the
President gives this provision Of the law It's
proper weight he will see that the diversion
Of any part Of his bullion, or of any dollars
coined from it. to any other use than the re-
demptiOn Of the notes paid for II would be n
reputation Of contract between the Govern
ment and the notcholders. The President is on
the right road If he has decided TO veto the
Vacuum bill. but II would be fatal to his reputa-
ton if he should tarnish that honorable act with
a suggestion that he would assent to a rcpudia-
ton of a public pledge. and to a further dis
turbance Of the monetary system