The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-06-20
A COLUMBUS MANS QUESTIONS.

A COLUMBUS MANS QUESTIONS.
correspondent in Columbus COM
plains that he is muddled with the
monetary terms he now hears. large
number of which he gives. He then asks
several questions. as follows:
Does the decentralization of silver simply
mean the discontinuance OF its coinage by
act OF legislation, or does Ii mean its alb
solute withdrawal from the circulation?
The dictionaries define "demonetize" as
draw from use as money" The United
States has never withdrawn silver once
stamped from use as money. Germany,
Sweden and Denmark called in and sold,
as bullion. $15O,O0000O of their silver
money. between 1872 and 1875, but there
remained In circulation in the world at
that date 81, 400, 0OO. 900 of silver money,
which increased to S4,5OO, 900, 900 in 1894
Do not all the European nations which
have suspended the free coinage of silver
as full legal tender money continue to
use il as subsidiary money and kept it at
a parity with gold"
Yes; Great Britain's stock OF silver
subsidiary money. which is a legal ten
der in sums of f., or about $40. is Sl12,-
00o. 900; Germany. single gold standard.
carries $105. 700 of legal tender and
s110.00000O of subsidiary silver. The ten
nominally gold standard nations of Eu-
rope carry s219,OOO.0 900 of silver. which is
full legal tender and s317, 0Oo. 900 of sub
sidiary silver, which is a limited legal
tender In 1888 the silver money of Eu-
rope was $40S, 100000, but i'm 1894 it was
$543, 900, O00-an increase of nearly 33 per
cent.
While. strictly speaking, only
demption primary money may be gold,
is not the United States on a bimetallic
are a full legal tender for all debts? If
not, why not?
There is much nonsense about gold
being the only redemption money Of the
United States. If a man owes a note at
a bank he can pay it in standard silver
dollars, and so of all accounts in the
United States, unless by contract it is
otherwise specified. If it is foreign ac-
count payment must be made in gold,
because gold is the money recognized in
foreign exchanges. But our gold is not
accepted abroad because it is coin or le-
gal tender, but because of it's value as
bullion, just as silver would be, namely
at it's market bullion value. In Indiana,
in current transactions, embracing all of
the traffic and borrowing and lending Of
money. silver is as much the money of
redemption as gold. State and munic-
ipal bonds. and probably a few long
time mortgages, are, when it is speci-
fed. payable in gold. chiefly because of
the extended periods of the contracts.
We use both metals as money, holding
the values of dollars at parity by limit
ing the issue of those of silver. Conse-
quently. our monetary system is bime-
tallic.
How much silver and how much gold
are represented by certificates?
May /, 1895, $4s,7 ,O09 of gold in the
treasury was represented in circulation
by certificates, and 1928, 215,271 standard
silver dollars were in the treasury, for
which silver certificates were in circula-
ton. In addition to the silver certifi-
Gates, s12l, SAC, 500 of the treasury notes of
1890, issued for the purchase of silver
bullion under the Sherman act of 1890,
were in circulation as legal-tender
money.
Is the Secretary of the Treasury caus-
ing any portion of the thousands of tons
OF silver bullion owned by the government
to be coined?
During May 100000 standard silver dol
lars were coined from the seigniorage of
the silver bullion purchased under the
Sherman act. The value of that bullion,
May 81, was $124,52s,5 $50, against which
s121, $40, 500 of treasury notes are in cir
culation. In the treasury and in circula-
ton there are S14S 044, $50 of notes which
are practically carried by the $124, 52S $50
of silver bullion. r.