New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-22
NOT LAWFUL MONEY.

It was unfortunate for Mr.. Bland tha'' even
while he was struggling to get Il quorum i''
his silver notes imitation bill. the A''orhc! '''H
eral rendered an opinion rc@aTuln- .c "-'''
status Of silver certificates lie says 'ilaI uc!
are just what they purport 10 DE- III eic''
mere warehouse receipts for certain S!N'r az
posited: and they attest the TACT 'ha' wv
United States has on deposit - many SILVER u"l'
lars which Will be paid 10 the hold'iS u.'oh III.
presentation and surrender OF Such ''f'IIl'"''H'
He rightly adds that. If thcy can be r'-''f"''!
rs money at all, d" ii is only DcciliS" 'I' INV"
States agrees TO receive them for CUSTOMS ''AVS
and all public dues, and only 10 lIi"I 'H''"'
and for those specific purposes. II" '''T'
fore holds that they are not law1u! money ana
II follows that they cannot be hcld aS SUCH
hv hanks rs part of their reserve. nor can any
body be compelled TO receive them III Sc''lcih'ht
OF any claim excepting dues To the Govern
mcnt This will not be news To the N'llAS'
When these certificates were hrSf ISSUED TIE
banks took legal advice. which i'u ih'h 10
receive and hold as few of the ccrlhc;llcS aS
nossiblc Mere habit of accepting them WITH
other notes. because they are commonly cTcu-
lated at par with other kinds OF paper cur
rency. has led banks TO hold more OF the GER
tificatcs during late years; but Inc law re-
mains unaltcrcd.
The opinion Of the Attorncy-Gcncral was
called out by Secretary Carlisle. who hhd on
served much "diSincnation of the National
banks TO receive silver certificates 1t was not
in the least remarkable that this reluctance
Increased and became conspicuous when TIE
majority in the House proposed To ISSUE S'''-
100000 more Of such certificates not having the
silver dollars behind them. Under the prcich'c
Of coming the scgnoragc" the Bland blll
would empower the Secretary 10 put out silver
certificates without waiting for the coinage "t
bullon thus issuing false certificates That the
United States actually has on deposit silver dol
lars which have not yet been coined THIS pro-
cccding appears to bankers and business men
the more dangerous because, in order 10 get
even shadow of excuse for such an i'uc OF
false certificates. the pending bill would violate
the pledge that the quantity Of silver bullion
purchased with Treasury notes should nj al
times be held against them.
Secretary Carlisle perceived the reluctance ~
banks 10 receive silver certificates, ana pos
sibly hoped 10 remedy it 10y getting legal
opinon. The effect Of the opinion VIII evident
" be 10 increase the unwillingncSS of banks -
receive or hold kind of paper which IS not
lawful money only where large obligations 10
Government are constantly 10 hc pail 50 That a
moderate quantity Of the silver certificates can
be worked OFF ia such payments every wccN.
can the banks afford 10 carry even that amount.
The Attorncy-GcncrarS opinion and The Bland
bill will probably affect the use ~ all silver
certificates in future, and may lead 10 sharp
discrimination against them In ordinary pay
mcnts, thus in effect l"Sscnn. the volume Of
currency available for all commcrc.al purposes.
for individual payments or for settlement with
banks Should the Bland srignior1-r bill pass.
the Secretary might Nud II not easy 10 get new
and false silver certificates ino circulation. ai
least IN advance Of the actual coinage of The
silver which they would pretend 10 rcprcS' mt.
Thus the pending measure would Increase lis
trust would tend 10 lessen IL" purchasing
power of currency. and II II had any effect on
prices, would tend - lower them Yet IFS OBJ
jcct is 10 secure higher prices 81 wheat cotton
and other great staples. by initiating the paper
circulation Srch is Democratic slatcsm1n,hlp.