The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1896-09-16

as the Bland Bill" This bill gave free
coinage To both gold and silver II
made coinage compulsory. At the
ratio existing between silver and gold
il was practical recommendation, with
silver as the standard and gold at
premium, for the cheaper metal, when
coined, invariably takes the volume of
circulation and expels the dearer.
The entire character of this bill was
changed in the senate by the Allison
amendment, and became known as the
"Bland-Allson Bill" 1t was then
passed by both houses and became the
'Bland-AllisOn Act" As passed, il in.
volved the principle of bimetalIsm, for
il limited the coinage of the cheaper
: metal, silver, and undertook TO main
/ tain il at a par with gold by providing
for its redemption.
This act restored the silver dollar
with full legal tender power, but did
not restore silver bullion To the mint.
ing privilege which attached to il
prior To 1878, and which was, in every
respect, equal to that bestowed upon
gold. This act re-established the "dol-
lar of the daddies," as it was called
made it legal tender for all debts ex-
cept when otherwise expressly stipu.
lated in the contract-and directed the
secretary of the treasury to purchase
silver bullion monthly at the market
price, not less than two million dollars,
nor more than four million dollars
worth per month, and cause the same
to be coined monthly, as fast as so pur-
chased, into such dollars.
This bill represented the same order
of thought that pervaded the silver
agitation OF the year 1899. Those
who favored the greenback Initiation
scheme were its ardent supporters.
Representatives from the silver produc-
ing states were strongly in its favor, in
the belief that it would enhance the
value of their product. While it made
the coinage of silver dollars compulsory,
to the extent of two million dollars per
month, it placed limit at four million
dollars. 1t was thought this much cir
culation in silver dollars could be kept
at par with gold, but it was soon found
the silver dollars would not circulate.
Out of IL, 1856 tons of silver purchased
by the government under the act at a
cost of S30S, 100, 262, and out of 37S,-
1856, 1893 silver dollars coined therefrom
under the act at an expense of $1,000
000 not more than one out of eight
found It's way into circulation.
For all the benefit to the circulation
derived from the act, the government
might rs well have saved itself the
100000 expense of coinage, and
bought and stored the silver bullion
The bullion was always worth more
than the coined dollars, and could have
been more safely and cheaply cared for
in the treasury vaults than its equiva.
lent in coins.
There was no expansion of the cur
rency, as the ardent advocates of the
bill fondly hoped. Nor was there an
increase in the price of silver bullion,
for it declined from SLIP an ounce in
1879, to 93t cents an ounce in 1899. In
other words, it DECLINED to point
where ii stood to gold as 90 to per
ounce value, and the value of silver in
a silver dollar was only ~ cents. 1t
has steadily declined until it now stands
as 81 to per ounce and the value in a
silver dollar is SO cents The Bland
Allison act of 1878 satisfied neither its
advocates nor its opponents and in
creased, rather than decreased, the sill
yer agitation 1t led to and fastened
the passage of the coinage act of July
IA, 1890. This act directed the secre-
tary of the treasury to purchase 4, 500.
600 ounces of silver bullion each month
at its market value and to issue in pay
ment for such, treasury notes. These
notes were redeemable in gold and sill
yer at the discretion of the secretary of
the treasury and have full legal tender
value. By comparing the two acts of
! 1878 and 1890, better understanding
of the silver question can be reached.
| The act of 1878 made ii compulsory to
| buy silver bullion to the amount of 81
600 600 and not to exceed 81, 900 900
monthly and to coin it into silver dol
| lars. This was drain on the treasury
OF at least S24 900, 900 per year. These
silver dollars could be exchanged in
sums of $40 or more for silver certifi-
Gates, the coin remaining in the treas
ury for their redemption The act of
1890, made it compulsory on the treas
urer to purchase "a 900, 900 ounces of
silver bullion a year, but, instead of
paying cash for it, certificates or treas
ury otes were issued, redeemable in
gold or silver com and clothed with full
legal tender powers. In the one case,
cash was paid for the bullion, and in the
other treasury notes were issued for 1t.
The bullion purchasing clause in the
act of 1890 was repealed in 1898 at the
| special Instance OF ITeslutnt OleNclaNu,
he claiming that this act was the cause
of the panic then existing. The prime
object of the law of 1890 was TO furnish
sure market for the product of our
American mines. 1t was a compromise
act, both the mine owners and the ad.
vocates of free and unlimited coinage"
accepting it AS the best that could be
done to secure home market for their
product. 1t was the general belief at
the time of the passage of this act that
it would increase the market price of
silver. Spectators entered the market
and bulLed silver bullion up to S1.05 an
ounce in April, 1890; to 81 .0S in May;
to S1.15 in August; to S1.21 in Septem-
Der. But the natural law of supply
and demand began TO operate against
them in the markets of the world. The
consequence was that the price of silver
broke. In October, 1890, silver fell to
Bloc; in December to $780, and the
decline has been gradual ever since.
In December, 1891, it dropped TO 94t
cents an ounce; in October, 1892, to SSt
and it has been falling in price ever