The Coconino weekly sun., 1894-04-05

fully understood by our people to whom such notes have been distributed as currency and have inspired confidence in their safety and value and have undoub tedly thus induced their continued and contented use as money, instead Of anxiety for their redemption,
 Having referred to some incidents which I deem relevant to the subject it remains for me to submit specific statement of my objections to the bill now under consideration.
 This bill consists Of two sections, excluding one which merely appropriates sum 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 called gain or seigniorage, which would arise from the coining of all the bullion on hand, which gain or seigniorage this section declares to be SoS l566Sl. It directs that the money so coined or the certificates issued thereon shall be used in the payment of public expenditures, and p ovides that if the needs of the treasury demands 1t the secretary of the treasury may in his discretion issue silver certificates in ex- cess of such coinage not exceeding the amou t of seigniorage in said section authorized to be coined
 The second section declares that as soon IS possible after the coinage of this seigniorage, the reminder of the bullion held by the gov. ernment shall be coined Into legal tender standard silve dollars and that they shall be held in the treasury for the redemption of
  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 now provided by law. It is, however, especially declared in such section that the act shall not be construed to change existing laws relating to the legal tender chIr. 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 1t is extreme ly doubtful whether it's language would permit the consumrnation 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 the bullion constituting the gain or seigniorage as 1t 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 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 t0its object and mean ing. In any event, am clear that the present perpleXities and endorsements of the secre- tary Of the treasury ought not to be augmented by devolviny upon him the execution Of a law so uncertain and confused.
 I am not willing, however, to rest my objec. ion 10 this section solely on these grounds in my judgment sound finance does not commend a further infusion of silver into our currency at this time unlccompanied by further ade- Quate provision for the maintenance in our treasury of safe gold reserve.
 Doubts also arise as to the meaning and con of the second section of the bill If 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 it is suggested that strictly speaking certih- cates 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 they were set apart for the purpose of substi- tuting them for these treasury notes. They are not therefore, held in such 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 t1 indi cate the characteristics and functions of these certificates. If they were to be of the same char acter IS 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 sectioA 1t Is, to say the least extremely doubtful whether the 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 as our finances and currency.
 In stating other and more important reasons for my disapproval of this section. shall, how. ever, assume that under it's provisions the treasury notes issued in payment for silver bull on will continue to be redeemed, as hereto. fore in silver or gold at the option of the hold. CTS and that if, when they are presented for re. or reach the treasury in any other 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 I am convinced that this scheme is ill-ad.
 
 it's operation treasury notes, legal tender for all debts, public and private, and which are re- in gold or silver, at the option of the holder. are to be replaced with silver certih- cates, which, whatever may be their character and inscription, will. have none of these qual- ities In anticipation of this result, and as an immediate effect the treasury notes will natu. rally appreciate in value and desirabilitv 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- tion to be immedia tely presented for gold re. demption or to be hoarded for presentation at a more convenient season.
 The sequel of both operations will be large addition to the silver currency in our circula- tion 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 any thing but the seigniorage can be entered upon. If the physical effects of the execu- tion of the second section of this bill are not 10 be realized until far in the future this may fur nish strong reason why it should not be passed so much in adyance but the postponement of it's actual operation cannot prevent the fear and loss of confidence and nervous prostration which would im- follow its passage and bring about it's worst consequences I regard this section of the bill as embodyng plan by which the government will be obliged to pay out It's