The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-03-17
Treasury Department.

Office of the Secretary,
Washington, ID. c., March Ii, 1885,.
To Hon. Josiah Patterson House Of Rep
resentativeS.
My Dear Sr-The favor of Feb. II was
duly received and ought to have been an
swered at once, but the pressure of otfi-
ciai business has compelled me TO delay
Il response until now, You state that in
speech delivered by Hon. Charles T..
crisp In the house OF representatives or
the fourteenth day of February that gem
tleman said:
''lle ,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
under the act of 1880. and when Il Sher-
man note issued under the act of 1872
In silver. What mockery is this: what
sort Of friendly treatment is accorded
silver by this law and practice that oh-
tains at he treasury of the United
States'' And you ask me to "state fully
how you Cd have dealt with the silver
the office OF secretary Of the treasury. and
whether YOU UD have in dealing with the
subject. discredited silvpr?'
In answer TO your question i can only
say that in all the operations of the treas
ury depart ment during my administration
of its affairs the legal tender gold AMI
treated precisely alike. except that greater
efforts have been made to keep silver coins
in cirrula tion than have been made to
keep gold coins In circulation.
Sil-NE ER COINS PAID OUT
The amount paid out by the department
greatly exceeds the mount paid out in
gold certificates, and in no instance has
the least discrimination been made against
silver or it's paper representative. In no
instance has silver or silver certificates
been refused in payments of Il debt or de-
mand due the government, and In no in
stance has the government refused to
pay silver coins or silver certificates in
discharge of It's obligations when the hold
ers Of th. obligations demanded or re-
questcd such payment. when United
States notes or treasury notes are present
eel for redemption gold is paid If il is de-
manded, and II silver is demanded silver ~
paid. Thus the coins of the two metals
are treated exactly alike In making pay
ments by the government, as well as in
the discharge of debts due to the govern
ment. II has always been the policy of
the treasury department to encourage. the
use of silver to the largest possible eN-
tent. and in order to accomplish this
standard silver dollars will be sent by eN-
press at the expense of the government To
any one who will deposit am equivalent
amount in silver certificates or in treas
ury notes of 1870 with the United states
treasurer or-a any assistant treasurer, or
with a national hank depository. and sub
siliary silver coins will be sent by the AK
press at the expense of the government to
any one who will deposit with such Of
hcers or ba nks any kind of nited States
currency or national bank notes: but gold
Is not sent to anybody free of charge.
In August. 1879. there was u great and
unusual demand in nearly every mart of
the country for currency of small denomi-
nations, and in its attempts to supply this
demand the treasury department paid out,
In defraNinS the expenses of the govern
ment and in exchange for other forms cf
currency. all the silver that could be law
fully used for these purposes. so that for
short period IL was compelled to SIS-
pend payment in standard silver dollars.
except in the redemption of silver certiii-
Gates and treasury notes of 1890 The law
authorizing the issue of silver certificates
upon deposits of silver provides that "the
coin deposited for or representing the cer-
tiiicates shall be retained in the treasury
for the payment of the same on demand"
II is therefore plain that whenever the
amount OF silver dollars in the treasury
does not exceed the amount of silver GER
tiiicateS outstanding. the secretary of the
treasury cannot. without violation of
redemption of certificates.
AN ILLEGAL EXCHANGE.
At such times he has no more right
to exchange silver dollars for gold than
he has to pay out In any other manper.
But there is also another fund in the
treasury which Is required by law to be
held for different purpose. 1t consists
Of the bullion and the standard silver dol
lars coined from the bullion purchased
under the act Os July II, 1890. That act
provides for the purchase of silver bullion
at the market price and the issue of treas
ury, notes in payment 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 bullion and
The standard silver dollars coined there
FROM then held in treasury pure chased by
such notes. Under this provision the
secretary is required to keep i'm the treas
mry a, all times an amount Of silver bull
lion. AT It's cost price, and in standard
silver dollars coined from the purchased
bullion exactly equal 10 the amount of
treasury notes outstanding. and he can.
not. therefore. lawfully use such stand-
ara silver dollars except for the redemp-
tion and cancellation Of treasury notes.
My letter to the United States senate
upon which Mr.. Crisp's statements seems
to have been based. was written on he
seventeenth day of August. 1899. and al
that time there was no free silver i'm the
treasury: that is there was no standard
silver dollars in he treasury except such
as the law required TO be held for the re-
treasury notes of 1890. and these redemp-
tions were made at ali times during thai
month ana every other month when these
forms of currency were presented. Dur
ing the month of August. 1S93 treasury
notes to the amount of 81, Dc were re-
deemed i'm silver and cancelled. and since
the first day of August, 1899. the total
amount of such notes redeemed in silver
and cancelled is $40. 722 Prior to NV
administration Of the affairs of the de-
redeemed I'm silver or cancelled.
GOLD PROCURED.
Since the beginning Of this administra-
tion nearly $ilO.0Oo000 in gold has been
procured in exchange for other forms
OIL currency. VI tnis amount SS.9I5S12 has
been procured in exchange for silver coin,
and SO. 329. $3.50 In exchange for silver cer-
tificates. The department has never re-
fused to exchange silver for gold when IL
had silver that could he lawfully used for
the purpose. and If 1t had SO refused I am
wholly unable to see how 1t could he con
sidered n discrimination against silver
Is refusal to pay out gold in exchange
for silver q discrimination against gold?
IT not. it of course follows that a refusal
to pay out silver for gold is not a dis
criminatiou against silver.
In response to your verbal inquiry con-
cernng the coinage of standard silver
dollars during the present administration
YOU are advised that 1t amounts to the
sum fof ST. s;fe, 900 up to the fifteenth day
of this month. while the whole amount Of
such dollars coined in this country. from
the establi shmept of the mint. In 1892, up
to February. 1878. "a period of eighty-siN
years. was $S.030.0O0
enclose herewith a copy of my letter
to the United States senate referred to
n Very trlilv yOurS