The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1894-04-05

an ounce VI SllN6r III lne lI6hSuI {.
| The debate upon this section in the
congress developed an earnest, posi-
tive difference OF opinion as to its OBJ
iect and meaning. In any event am
clear that the present perpleXities
, aud embarassments of the secretary
of treasury ought not to be augmented
by devo.ving upon him the execution
OF law so uncertain and confused.
am not willing, however, TO rest
my objection to this section solely on
these grounds. In my judment sound
| finance does not commend further
infusion of silver into our currency at
this time, unaccompanied by further
adequate provision for the mantle
nance in our treasury of S 4te gold
reserve.
AMBIGUITY OF THE BILL.
Doubt also arises as to the meaning
and construction of the second section
of the bill. Ifthe silver dollars there
in directed to be thus coined are, as
the section provides, to be held in the
treasury for the redemption Of treas
ury notes, it is suggested, strictly
speaking, certificates cannot be issued
on such coin lin the manner now pro.
Jided by law because these dollars
are money held in the treasury for
the express purpose of redeeming
the treasury notes on demand, which
would ordinarily mean that they
were set apart for the purpose of sub
stituting them for these treasury
notes. They are not therefore held
in such way as to furnish basis for
certificates, according to any provi-
sion of existing law.
If, however, silver certificates can
properly be issued upon these dollars,
there is nothing in the section to indi
cate the characteristics and functions
of these certificates. IT they were to
be the same character as the certifi-
Gates in circulation ander the existing
law, they would be at best receivab BILE
onlyf or customs and all public dues,
and under the language of this section
it is to say the least extremely doubt
full whether the certificates it cons
templates would be lawfully received
even for such purposes. Whatever
else may be said of the uncertainty of
the expression of this bill, they GER
tainly ought not to be found in legis-
lation affecting subjects 80 important
and far reaching as our finances and
currency.
OTHER REASONS.
In stating other and more import
ant reasons for my disapproS al OF this
section shall, however, assume that
under its provisions the treasury notes
issued in payment for silver bullion
will continue to be redeemed as here
tofore in silver or COLO at the option OF
the holders; that if they are presented
for redemption, or reach the secretary
in any other manner, there are in the
treasury coined dollars equal to such
treasury notes, then in that case the
notes would be destroyed and silver
certificates to an equal amount substi-
tuted. I am convinced that this
scheme is i'll advised and dangerous.
AS an ultimate result OF its operation
treasury notes which are legal tender
for all debts, public and private, and
which are redeemable in gold or
silver at the option of the holder
will be replaced by silver certificates
which will have not those qualities
In anticipation of this result and al
an immediate effect the treasury notes
will naturally appreciate in value an
desirability. The fact that gold car
be realized upon them and the further
fact that this destruction has been de-
creed when they reach the treasury
must tend to their withdrawal from
general circulation to be Immediately
presented for gold redemption or to
be boarded for presentation at q more
convenient season.
ENLARGED SILVER CIRCULATION.
The operations of the bill will be q
large addition to the silver currency
in our circulation and corresponding
reduction of gold in the treasury. The
argument has been made that these
things will not occur at once because
3 long time must elapse before the
coinage of the seigniorage can be en-
tered upon. II the effects of the
execution of the condition are not "a
be realized until far in the future, this
may furnieh a strong reason why il
should not be passed so much in adj
vance. But the postponement of its
actual operation cannot prevent the
fear and loss of confidence and nervous
prostration which would immediately
follow its passage and bring about its
worst consequences
l regard this section of the bill as
embo1ying a plan by which the gov.
eminent will be obliged to pay out it's
scanty store of gold for no other pur.
pose than to force an unnatural addi-
tion of silver money into the hands OF
our people. This is an exact reversal
of the rolicy which safe finance dies
tates if we are to preserve parity he.
tween gold and silver and maintain
possible metallism.
OUTSTANDING SILVER CERTIFICATES.
We have now outstanding more
than $33S, 000,00 in silver certificates,
issued under existing laws. They are
serving the purpose Of money usefully
and without question. Our gold re.
serve, amounting to only little more
than $l00,000,00 is directly charged
with the redemption of $4,000, 0CO of
United States notes When it ia pro-
posed to initiate our silver currency it
is time for strengthening our gold
reserve instead of depicting it. l can
not conceive longer step towards a
silver recommendation than we take
when we spend our gold to buy silver
certificates for circulation, especially
viaw Of tho raotioal L., ;oc