The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1894-04-04

bAAibn now on ndlQ was purchased Il his
parity in value OF the coins of the two
metals and the equal power Of every dol
lar. at all times in the markets and in the
payment Of debts.
The Conditions Presented.
The secretary OF the treasury has. there
fore, for the best reas sons. not only COM
piled with every demand for the redemp-
ton or these treasury notes in gold, but the
present situation, as we'll as the letter and
spirit Of the law appear plainly 70 Justify.
II they do not enjoin upon him continua-
ton OF such retention. The conditions
have endeavored to present may be thus
summarizes
j. The government has purchased and
now has on hand sufficient silver bullion
10 permit the coinage Of all the silver dol
iars necessary TO redeem in such dollars
OF said silver bullion and enough beside 10
com as gain or segnioTage. 55.l5S6I aodi-
uonal standard silver dollars
:. There are outstanding and now In cir
cuiatlon treasury notes issued in payment
OF me bullion purchased amounting to
2,s9l, go. These notes are legal tender
in payment Of all debts public and private.
except when otherwise expressly stipulated:
they are receivable fer customs. taxes and
sociauons they may be counted as part OF
their lawful reserves. and they are re-
aeemed oy the government in gold at the
opuon OF the holders. These advantageous
attributes were deliberately attached 70
these notes at the time OF their issue. they
are fully understood by our people 10 whom
such notes have been distributed as cur
rency and have inspired confidence in their
safety and value. and have undoubtedly
Use as money instead Of anxiety for their
redemption. {
Having referred TO some incidents which
l deem relevant to the subject IL remains
for me 10 submit q specific statement Of
my objections TO the bill now under consid-
Grafton.
This bill consists Of two sections. exclude
slIffcient TO carry he ar mo effect THE
first section provides for the Immediate
coinage of the silver bullion In the ar sasury
winch represents the so-called gain, or
coinage of all the bullion on nand which
gain or seignorage the calculation declares
TO be 50; l56eSl- II directs that the money
SO coined or the certificates ISSUED thereon
shall be used in the payment Of public eN-
penditureS and provides that IF the needs
of the treasury demand il the secretary
silver certificates in excess Of such coin
age not exceeding the amount OF seigniOr-
age in said section authorized TO be coined.
me second section directs thar a. soon
as possible after the coinage OF this seign-
forage the remainder of the bullion held by
the government shall be coined into legal
tender standard silver dollars and they
shall be held in the treasury for the re-
demption Of the treasury notes issued in
the purchase OF said bullion. IT provides
that as fast as the bullion shall be coined
for the redemption OF said notes they shall
not Do EtlSSuet. buL Sffdil De EGAlEtlitl anu
destroyed in amounts equal 10 the com
held al any time I'm the treasury derived
from the coinage provided for. and that the
silver certificates shall be issued on such
coin in the manner now provided by law.
1t is. however, especially declared in said
section that the act shall not be con-
strued to change existing laws relating TO
the legal tender character or mode OF re-
demption of the treasury notes issued for
the purchase Of the silver bullion 10 be
coined.
Unfortunately Constructed.
The entire bill is most unfortunately con-
structed. Nearly every sentence presents
uncertainty and invites controversy as TO
it's meaning and intent The first section
is especially faulty in this respect and il
is extremely doubtful whether its language
viii permit the contamination of its sup
posed purposes.
1 am led to believe that the promoters
of the bill intended in this section to pro-
vide for the coinage Of the bullion con-
stituting the gain or seigniorage, as il Is
called, into standard silver dollars and Yet
there is positively nothing in the section
to prevent its coinage into any description
Of silver coins now authorized under any
existing law. ] suppose this section was
also intended, in case the needs OF the
treasury called for money faster than the
coined. to permit the issue Of silver GER
tihcates in advance Of such coinage; but
suance Of such certificates 10 double the
amount OF seigniorage as stated, one-half
Of which would not represent an ounce OF
silver in the treasury. Ine deDdle upon
this section in the congress developed an
earnest and positive difference of opinion
as To its object and meaning. In any
event / am clear that the present per-
pleXities and embarrassments OF the secre-
tary Of the treasury ought not TO be aug
mented by devolVing upon him the exc
cution Of a law so uncertain and confused.
1 am not willing, however. 10 rest my
objection 10 this section solely on these
grounds: IN my judgment sound finance
does not commend further infusion OF
silver into our currency at this time, IN
accompanied by further adequate provisions
for the maintenance IN our treasury OF 4
safe gold reserve.
Do1ibts also arise as 10 the meaning and
construction Of the second section OF The
bill If the silver dollars therein directed
10 be coined are, as the section provides,
10 be held in the treasury for the re-
demption Of treasury notes, II Is suggested
that strictly speaking, certificates cannot
be issued on such coin In the manner now
provided by law because these dollars
are money held i'm the treasury for the ex-
press purpose of redeeming treasury notes
on demand, which would ordinarily mean
that they were set apart Tor the purOpse
OF substituting them Tor JheSe treasury
notes. They are not. therefore, held IN
such a way as to furnish a basis for Ger
tifcates according TO any provision or ex-
listing law. II, however, silver certificates
can properly be issued upon these dollars,
there is nothing in the section 10 indicate
the characteristics anu AullEA4DLiS u Aureo
certificates. If they We're TO be OF the
same character as silver certificates in cir
culation under existing laws they would
at best be receivable only for customs
taxes and all public dues; and under the
language Of this section ID IS, 10 say the
least extremely doubtful whether the GER
tifcates 1t contemplates would be lawfully
receivabl even for such purposes.>
Whatever else may be said of the uncer-
tainties Of expression in this bill they GER
tafnly ought not To be found in legislation
affecting subjects SO important and TAR
reaching as our finances and currency.
Other Objections.
In stating other and more important rea-
sons for my disapproval Of this section l
shall however assume that under its pro-
visions the treasury notes issued in pay
r,ent for silver bullion will continue 10 be
redeemed. as heretofore, in silver or gold
at the option of the holder. and that II
when they are presented for redemption
or reach the treasury in any other manner
there are in the treasury coined silver dol
lars equal in nominal value 10 such treas
,lrv notes, then, and in that case, the notes
would be destroyed and silver certificates
WINGED that this scheme is il-adviSed and
dangerous As an ultimate result OF tie
operation treasury notes, which are legal
tender for all debts. public and private.
and which are redesEnable I'm gold or silver.
al the option Of the holder, will be replaced
by silver certificates which, whatever may
be their character and description, viii
have none Of these qualities. In anticipa-
ton of this result and as an Immediate
effect the treasury notes viii naturally APP
preciate in value and desirability. 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
circulation. to be Immediately presented