The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1894-04-06

10 be ST. i56 6sI 1t directs that the money so
coincd or the certificates Issued thereon shall
be used in the payment Of public expenditures.
and provides that il the needs Of the treasury
demands il the secretary of the treasury may
in his discretion issue silver certificates in eD
cess OF such coinage not exceeding the amount
OF seigniorage in said section authorized to 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.
eminent shall be coined into legal tender
standard silve dollars and that they shall be
held in the treasury for the redemption OF
treasury notes issued in the purchase OF said
bullion II 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 70
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 co.'s
in the manner now pro-ided by law. II is
however. especially declared in such sectios
that the act shall not be construed 10 change
existing laws relating to the legal tender char.
acter or mode of redemption Of the treasury
notes issued for the purchase OF the silver bull
lion to be coined
The entire bill is most unfortunately con-
structed Nearly every sentence presents un-
certainty and invites controversy as to Its
meaning and intent The first section is es
pecially faulty IN this respect and ii is extreme
ly doubtful whether its language would permit
the eonsummation OF its supposed purposes j
am led to believe that the promoters of the bill
intended in this section TO provide for the coin
age of the bullion constituting the gain or
seigniorage, it is called. into standard silver
dollars and yet there is positively nothing in
the section to prevent its coinage into any de-
scriptiou of silver coins now authorized
under any existing law. 1 suppose
this section was also intended, in
case the needs of the treasury
called for money faster than the segnorage
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 as 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-
tsry Of the treasury ought not to be augmented
by deyolving upon him the execution OF law
so uncertain and confused
j am not wiling 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 sde-
Quate provision for the maintenance in our
treasury Of a safe gold reserve
OOuOtS also ARISE as W tHc ulcduAuB anu OOh-
struction OF the second section Of the bill II
the silver dollars therein direct to be coined
are, as the section provides, to be held in the
treasury for the redemption Of treasury notes,
1t Is suggested that strictly speaking certii-
Gates cannot be issued on such coin "in the
manner now provided pv 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
they were set apart for the purpose OF substi-
tuting them for these treasury notes They
are not therefore, held in such a way as to fur
nish a basis for certificates according to any
provision of existing Law. II. 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 II thew were TO be Of the same char
acter as 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 IL is. TO
say the least extremely doubtful whether the
certificates IL 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 as our
finances and currency.
In stating other and more important reasons
for my disapproval Of this section shall, how
ever, assume that under its provisions the
treasury notes issued in payment for silver
bulr on will continue 10 be redeemed, as hereto
FORE in silver gold at the option Of the hold
ers and that IL, when they are presented Tor re-
demption. or reach the treasury in any other
manner. there are in the treasury coined sil
yer dollars equal in nominal value 70 such
treasury notes then and in that case
/ the notes will be destroyed and silver
certificates to an equal amount substituted
am convinced that this scheme is Had
4 Wis md danrprOua IA ultimate result OF
| its operation treasury notes, legal tender for
1 all debts public and private, and which are re-
deemable in gold or silver at the option OF tho
holder. are to be replaced with silver certih-
| Gates, which, whatever may be their character
and inscription. will have none of these quail
| tiles In anticipation Of this result and as an
| immediate effect the treasury notes will natu-
rally appreciate In value and desirabiity. The
| fact that gold can be realized upon them and
the further fact that their destruction has been
| decreed when they reach the treasury must
| tend to their withdrawal from general circula-
ton to be Immediately presented for gold 70.
| demption or TO be boarded for presentation az
| a more convenient season
| The sequel of both operations will be large
| addition TO the silver currency IN our circular
| ton and a 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 or
| anything but the seigniorage can be entered
| upon II the physical effects Of the execu-
ton OF the second section OF this bill are not to
be realized until far In the future this may fur
| nish strong reason why IL should NOS
| be passed 50 much In advance: but
| the postponement of its actual operation
| cannot prevent the fear and loss Of confidence
and nervous prostration which would inn
mediately follow its passage and br ng about
| its worst consequences regard this section
of the bill as embodying a plan by which tho
/ government will be obliged TO pay out It's
| 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, II We are to preserve parity betyeen
| gold and silver and maintain sensible bimetar
/ ism
| We have now outstanding more than $3.50,
Co., OO0 in silver certificates issued under exist
ing laws. They are serving the purpose OF
/ money usefully and without question Our
/ gold reserve. amounting 70 only little more
1 than siOJ 900 OOI, Is directly charged with the
| redemption Of s3f5 Ooj, ooO Of United States
/ notes When IL Is proposed 70 initiate our sill
| yer currency it is a time for strengthening our
gold reserve instead Of depicting IL cannot
/ conceive OF a longer step toward silver mono
/ metallism than we take when We spend our
i gold 10 buy silver certificates for circulation
especially In view OF the practical DIM
| culties surrounding the replenishment OF our
/ gold
This leads me to earnestly present the desir-
ability Of granting to the secretary OF the treas
| ury a better power than now exists TO issue
| bonds to protect our gold reserve. when Tor any
| reason il should DC necessary. Our currency
is in such a confused condition and our financial
affairs are apt 10 assume at any time so critical
| a position that tt seems 70 me such course Is
dictated by ordinary prudence
lam not insensible 70 the arguments IN favor
| OF coming the bullion seignior4ge nov in the
| treasury and believe 1t could be done safely
| and with ADVANTAGE IL the secretary OF the
| treasury had the power TO issue bonds at low
1 ,ndar aurhorirv in substitution