Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-09-01
ADMINISTRATION TO BLAME.
Its Hostility to silver Has Kept
sherman Notes In Circulation.

washington Telegram in New York
JournaL)
Since August lst the United States Mint
az Philadelphia has been working fun
time and at full capacity. coming stand
ard silver dollars from the bullion pur-
chased under .he act OF July "A. 1890
This means the coinage OF S25o,o0O every
month. and I'm the turning into the Urea
sury monthly Of 1880 in accruing
seigniorage
In the first six months OF 1886 7,50s,4l2
silver dollars were coined Of which
amount 5.l7l 79S represented the cost
OF the silver bullion, and s. S27 6H the
profit to The government. On August LIST
orders were issued 10 run the Philadelphia
mint TO its fun capacity, and that order
win stand indefinitely.
The Treasury now holds about Si0oo0,0o0
in silver, coined from the bullion pur-
chased under the Sherman act, which II
uses to redeem and retire the Sherman
notes. II has. since August l, 1898. re-
deemed and cancelled S27lTS.009 I'm Sher-
man notes, replacing them with either
silver dollars or silver certificates.
II was the undoubted intention and ex-
pectatlon OF Congress that the Treasury
would retire the Sherman notes and re-
place them with either coined silver or
silver certificates as rapidly as possible.
Finding that this purpose was being de-
feated the bill providing for the coinage
OF the seigniorage was passed, only TO
meet with veto at the hands Of Presi-
dent Cleveland. Had that bin been al
lowed TO become a law. or had Secre-
taries Foster and Carlisle been as
anxious TO find means for carrying out
the purpose OF the Sherman act as for
defeating It, all the Sherman notes would
have long since disappeared, and the
banks Of New York would have been
shorn Of one OF their most formidable
weapons with which to raid the Treasury
gold. and make excuse for the last two
bond issues which have made this adj
ministFatiOn notorious.
INCONSISTENT HODGE-PODGE.
The Sherman act is a strange and incon-
sistent hodge-podge. 1t prescribes that the
Treasury notes. issued in payment for
silver bullion shall be redeemable In CON-
and when 50 redeemed, or received in
payment Of public dues may be reissued.
But no greater or less amount OF such
notes" says the act, shall be OUT
standing at any time than the cost Of the
silver bullion and the standard
silver dollars coined therefrom then held
I'm the Treasury purchased by such notes"
Secretary Foster made no effort what
ever 10 retire a single note. When the
present administration came in the full
amount was outstanding. In August
Secretary Carlisle issued an order TO can
eel such Sherman notes as were offered
in exchange for silver dollars. Under
this narrow construction Of his powers
something over 81. 0o9. 90, as stated above.
has been cancelled. Were the law 20 be
interpreted IN its spirit, the bullion
would be coined. silver certificates Is
sued against the standard silver dollars
thus coined, and paid out, and the Sher-
man notes cancelled as fast as re-
celved for public dues, or redeemed
whether In gold or silver.
The reissuance Of the Sherman notes Is
clearly not mandatory. as the law says
may be relssued" not shall be re-
issued" and there Is no restriction in the
law as TO the amount Of bullion which
may be coined for redemption purposes.
Untn recently government repositories
were not required 10 give the government
whatever benefit might come In the reten-
ton for government use OF preferred
forms Of currency such as gold COIN
greenbacks. and Sherman notes. This Is
now being done. and the activity at the
mints In the coinage OF bullion shows that
the Treasury has AT last awakened 10 the
advisablity Of getting rid OF the Sher-
man notes as rapidly as possible.
cLEyELAND's HOSTILITY.
Since the passage Of the Sherman act,
July. IA. 1870. the whole body Of Sherman
notes have passed through the Treasury.
not once. but several times. Had the pres
ent administrator hostility 10 silver
been tempered with little financial sense
the sherman notes would have practi-
caIly disappeared from circulation more
tran a year ago The total body OF Shef-
man notes. yl55. $1,000. would have been
replaced by 500 .722.s12 In silver dollars,
or silver certificates, OF which amount
s5S 202 665 would have been put into the
Treasury as profit. or seigniorage.
Had this easy transaction been accom-
plished by January 1. 1896. two important
results would have followed-the Urea
sury would not have been short OF cash.
and the banks would have ceen deprived
OF the Sherman notes. and thus would
have been unable 10 withdraw gold 20
the extent they did. Following, as natu-
raj sequence, there would have been
neither necessity nor excuse for the bond
contract Of February. 1896. nor the bond
issue OF January. 1886 The Treasury
would to-day have about $50 10000 In
cash, instead OF being congested with
s24s 900 90, and the balance. moving freely
In the channels Of trade. would have
done it's mission In reviving business.
As Il ~, business II choked for want OF
money. interest Is high. and the country