The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-04-06

called gain or seigniorage. which would arise
from the coming Of all the bullion on hand,
which gain seigniorage this section declares
TO be So l556sL 1t directs that the money %
coin ID or the certificates issued thereon shall
be used in the payment Of public expenditures.
and o. ovides that If the needs OF the treasury
demands II the secretary OF the treasury may
in his discretion issue silver certificates In ex.
cess Of such coinage not exceeding the amou.t
Of seigniorsge in said section authorized 70 be
coined
The second section declares that as soon a.
possible after the coinage Of this seigniorage,
the remainder of the bullion held by the gov.
erument shall be coined into legal tender
standard silve dollars and that thew shall be
held in the treasury for the redemption Of
treasury notes issued in the PURCHASE Of said
bullion It provides that as fast as bullion
shall be coined for the redemption OF said notes
they shall be re-issued but that they shall be
cancelled and destroyed in amounts equal to
the coin held at any time in the treasury de-
rived from the coinage provided for, and that
silver certificates shall be issued on such coin
in the manner nog pro rided by law. 1t Is,
however. especially declared in such section
that the act shall Tot be construed to change
existing laws relating to the legal tender char
scter or mode OF redemption of the treasury
notes issued for the purchase of the silver bull
lion to be coined
TIE entire bill is most unfortunately con-
stracted Nearly every sentence presents un.
meaning and intent The first section is es.
pecially faulty in this respect and it is extreme
ly doubtful whether its language would permit
the consummation Of its supposed purposes I
am led to believe that the promoters Of the bill
intended in this section to provide for the coin
age OF tho b Illion constituting the gain or
seigniorage, as II Is called, into standard silver
dollars and yet there is positively nothing in
the section to prevent its coinage into any de-
scripton Of silver coins now authorized
this section was also intended, in
case the needs Of the treasury
called for money faster than the seigniorage
bullion could actually be coined TO present the
issue OF certificates in advance Of such coinage;
but its language would seem to permit the is
suance Of such certificates to double the
amount Of seigniorage stated, one-half OF
which would not represent an ounce OF silver
In the treasury The debate upon this section
in congress developed an earnest and positive
difference OF opinion as to its object and mean
ing In any event, am clear that the present
perplexities and embarrassments OF the secre-
tary OF the treasury ought not to be augmented
by devoiving upon him the execution Of a law
so ertain and confused
I am not willing, however, to rest my Obtec.
ton to this section solely on these grounds; in
nv judgment sound finance does not commend
a further infusion Of silver into our currency
at this time unaccompanied by further ade-
quate provision for the maintenance in our
treasury OF a safe gold reserve
Doubts also arise as to the meaning and con-
struction Of the second section of the bill If
the silver dollars therein direct d to be coined
are, as the section provides, to be held in the
treasury for the redemption Of treasury notes.
ii is suggested that strictly speaking certifi-
Gates cannot be issued on such coin "in the
manner now provided by law because these
dollars are money held in the treasury for the
express purpose of redeeming treasury notes
on demand, which would ordinarily mean that
cha sat fprf bo nf ,bSti.
tuting them for these treasury notes They
are not therefore, held in such a way as to fur
nish basis for certificates according to any
provision Of existing Law. If. however, silver
certificates can be properly issued upon these
dollars there is nothing in the section t indi-
cate the characteristics and functions Of these
certificates. If thev were to be of the anne char
acter silver certificates in circulation under
existing laws they would at best be receivable
only for customs, taxes and all public Dues
and under the language OF the section 1t Is to
say the least, extremely doubtful whether the
certflca tes it contemplated would be lawfully
received even for such purposes.
Whatever else may be said of the uncertain
ties of expression in this bill they certainly
ought not to be found in legislation affecting
subjects so important and far reaching our
finances and currency.
In eating other and more important reasons
for my disapprovll of this section. shall, how.
ever, assume that under its provisions the
bull on will continue to be redeemed, as hereto.
fore, in silver gold al the option Of the hold.
ers and that if, when they are presented for re-
demption, or reach the treasury in any other
manner, there are in the treasury coined sill
yer dollars equal in nominal value to such
treasury notes. then and In that case
the notes will be destroyed and silver
certificates to an equal amount substituted
1 am convinced that this scheme Is ill-ad-
vised and dangerous. AS an ultimate result Of
a. nn6a for
all debts. public and private. and which are re-
deemable in gold or silver. at the option Of the
holder. are to be replaced with silver certin-
Gates, which, whatever mav be their character
and inscription, will have none of these quail
tiles In anticipation of this result and as an
imme iiate effect, the treasury notes will natu-
rally appreciate in value and desir ability The
fact that gold can be realized upon them and
the fur ther fact that their has been
decreed when they reach the treasury must
tend to their withdrawal from general circula-
ton to be Immediately pre- sented for gold re.
demptiou to be boarded for presentation at
a more convenient season
The sequel OF both operations will be a large
addition to the silver currency in our circula-
ton and corresponding reduction of gold in
the treasury. The argument has been made
that these things will not occur at once because
a long time must elapse before the coinage Of
anything but the sefgniorage can be entered
upon. If the physical effects Of the execu-
ton OF the second section OF THIS Dill are not 10
be realized until far in the future this may fur
nish a strong reason why it should not
be passed so much in advance: but
the postponement of its actual operation
cannot prevent he fear and loss of confidence
and nervous prostraton which would i'm
mediately follow IS passage AMI br ng about
its worst consequences regard this section
| of the bill as embodying a plan by which the
government will be obliged to pay out its
scanty store Of gold for no other purpose than
to force an unnatural addition Of silver money
into the hands Of our people This is an exact
reversal of the policy which safe finance die
| tates il we are to preserve parity between
gold and silver and maintain sensible bimetal-
| ism
We have now outstanding more than $685.
OOl o 70 in silver certificates issued under exist
| ing laws. They serving the purpose OF
money usefully and without question Our
gold reserve. amounting to only a little more
than 800, 900 90, is directly charged with the
redemption Of s3i5 oO',0oo Of United States
notes. When it is proposed to initiate our sill
yer currency it is q time for Strengthening our
gold reserve instead of depicting it cannot
| conceive of longer step toward silver mono.
metallism than we take when we spend our
gold to buy silver certificates for circulation