The morning times., 1896-03-17

My Dear Sir-Your favor of February
II was duly received, and ought to have
been answered at once, but The pressure
OF official business has compelled me TO
delay response until now. You state
that in speech delivered by Hon. Charles
F. Crisp in the House of Represent atives on
the 14tb day Of February, that gentleman
said:
ne (meaning the Secretary of the
Treasury refuses to give silver for gold
because he must hold the silver to pay
the silver certificates, and Sherman notes
issued under the act of 1890, and when Il
Sherman note, issued uuder the act of
1880, is presented ne red ems ii i'll gold
aud not in silver. What Inockery is this?
What sort OF friendly treatment is accorded
silver by this law, aud the practice that
obtains nj the Treasury or the United
Statcs?"
TREATED THEM ALIKE.
Aud you ask me TO state fully how
YOU % have dealt with the silver cur
rcacy since your (myl iDcumbency of the
office OF Secretary OF the Treasury, and
whether you C) have, in dealing with the
subject, discr,ditcd silver?'
III answer to your question | can only
say that i'll ali the operations of the Treas
ury Department during nay administration
! of its affairs the legal tender gold ana silver
precisely alike, exec pt that greater efforts
! haze been made to keep silver coin in cir
cuiation than have been made To keep
gold coins in circulation.
The amount paid out by the department
i'll silver coins and silver certificates greatly
exceeds the amount paid out IN gO.u COlns
and gold certificates. and i'll no instance
has tne least discrimination been made
against silver or It's paper representa-
has or
certificates been refusei in payment OF a
! debt or demand due the COVE ernment and
III no instance has the government refused
to pay silver coins or silver certificates i'll
discharge OF its obligations When the Lo.d-
crS OF the obligations demanded or re-
questel such payment.
When the United States notes or Treas
ury notes presented for redemption gold is
paid il il Is demanded, ana Ii silver is de-
mandCd silver is paid. Thus the coins os
the two metals ar" treat ett exactly alike in
making payments hy the government, as
WeI. as III the discharge or ucbts due to the
government.
ENCOURAGE Use OF SILVER
II has always been the policy OF the
Treasury Department To encourage the
use Of silver TO the largest possible extent.
aud in order TO accomplish this standard
silver dollars viii be sent by express at
the expense OF the Government to any
one vino viii deposit an equivalent amount
IN silver certificates or in Treasury notes
OF 1890 with the United States Treasurer
or with n national bank depository,
aud sdbtredSuFy silver coins viii be
sent by express at the expense of the Gov
cfnmtnt to any one who Will deposit with
such Officers or banks any kind OF United
States currency or national bank EOteS;
hat gold is not sent to anybody free OF
charge.
In August, 1893, there was great and
unusual demand in nearly every part OF
the country for currency Of small denoiLi-
na lions, and in its attempts to supply this
demand the Treasury Department paid
out, IN derraying the expenses of the GOV
rrunent and in exchange of other forms
of currency. all the silver that could b.
Ia wfuIly used for these purposes, so that
for short period it was compelled to
suspend payment in standard silver dol
lars, except in the redemption OF silver
certificates upon deposit of silver certifi-
Gates and Treasury notes of 1890.
The law authorizing the issue OF silver
certificates upon deposits of silver, pro-
viles that the coin deposited for or
representing the certificates shall be re-
t4IEcI in the Treasury Tor the payment Of
The same on demand"
NO RIGHT TO USE IT.
IL IL lutItl5Ec pidul lIldI whenever Iilt
amount of silver dollars in the Treasury
does not exceed the amount of silver cer-
ttficatcs outstanding, the Secretary of the
Treasury cannot, without a violation of
law, pay out such silver except for the
redemption of certificates.
At such times he has no more right to
exchange silver dollars for gold than he
has TO pay them out in any other manner
But there is also another fund in the
Treasury which is required by law to be
held for different purpose.
IL consists o. the buiiiou ana the standard
silver dollars coined from the bullion
purchased under the act OF July Ia, 1890.
That act provides for the purchase of silver
bullion at the market price and the issue
OF Treasury notes in pa yment for it, and it
also declares that mo greater or less
amount of such notes shall be outstanding
at any time than the cost of the silver
| hnlnon ana the standard silver dollars
coined therefrom than held in the Treasury
purchased by such notes.
Under this provision the Secretary is re-
CURED 10 keep in The Treasury at all times
an amount OF silver bullion, at its cost price
and in standard silver dollars coined from
tie purchased bullion. exactly equal to the
amount of Treasury notes outstanding,
and cannot therefore Ia awfully use such
standard silver dollars, except for the re-
OSlllptibllHlltl lFdHGpIIiIObO treasury notes.
WASNO FREE SILVER.
My letter to the United States Senate,
upon which Mr.. Crisps' statement seems
To have been based, was written on the
17th day of August, 1898, and at that time
there was no free silver in the Treasury:
that is there were no standard silver dol
lars in the Treasury, except such as the II w
required to be held for the redemption OF
silver certificates and the Treasury notes
of / $50, and these redemptions were made
at all times during that month and every
other month when these forms of currency
were presented.
During the month of August. 1893. Treas
ury notes TO the amount of $1,273, ,267
were redeemed in silver and Cancelled, aud
since the first day of August, 1898, the
total amount OF such notes redeemed in
silver and cancelled is SIS, 0,533 722. Prior
TO my administration of the affairs of the
department none of these notes had been
redeemed III silver or Cancelled.
Since the beginning of this administrI-
tion nearly $110,0GG,0 600 has been pro-
cured in exchange for other forms of cur
been procured in exchange for silver coin,
and SO, 1929, $50 in exchange for silver
certificates.
HAS NEVER REFUSED.
The Department has never refused 10 ex-
change silver for gold when it had silver
that could be lawfully used for that pur-
pose, and if it had so refused / am wholly
unable to see how it could be considered
a discrimination against silver. Is a re-
fusalto pay out gold in exchange for silver
a discrimination against gold? If not, it
OF course follows that IL refusal to pay
out silver for gold is not discrimination