The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-09-16
GOLD AND SILVER QUESTIONS
Can Silver Coin b. Obtained From
the United States Treasury in
Exchange for Gold?

the United States Treasury in
Exchange for Gold?
Editor Representative: Your kind let
ter reminds me that in my discussions
of the silver question l must refer to
documents by name and give page and
date, even in the smallest particulars 8,
in order to satisfy our gold bug oppon-
ents.
You are right But had forgotten,
for the moment, that the average gold
bug is still in the kindergarten class on
the money question, and that he sell
dom reads anything except the mis-
leading statements of his partisan news
papers. l had presumed that your OPP
ponents had read at least some of the
many mastery speeches in congress
during the great debate of the extra
session of the Fifty-third congress in
1893. l now stand corrected, and will
write as IL addressing little children
who have not yet mastered their horn
books.
The case l referred to is an applica-
ton to the treasury for silver, offering
gold payment, that was not fully salts
fed, is described in a circular issued
July 20, 1885, by the associated banks
of New York. The circular states that
after careful consideration into the
current operations of the United States
treasury" by banks, it was ascertain
ed that the gold reserve was, in
their judgment, getting dangerously
low, therefore the banks resolved ITO
tender to the government the sum of
ten million dollars from their gold re-
serve in exchange for that amount OF
fractional silver coin"
And it was further resolved that,
should this amount prove insufficient,
"a further sum, not to exceed ten mil
lions be offered
Further along in the circular it is
stated that the silver dollar is not "in
popular demand" but that the ''frac-
tional coins may more largely circulate.
And, therefore, all banks are invited to
aid in circulating the thirty millions (of
fractional cOins) now lying idle in the
treasury"
Here is distinct application to the
treasury for ten to twenty millions of
silver coin, with a tender of gold in
payment for the silver According to
the newspapers of the time the applica-
ton was not fully satisfied, though
there were then in the treasury thirty
millions of fractional coin lying idle.
Why was the application not fully
satisfied? That Is secret Don't ask.
There is, also, another secret; a uecep-
tive one. The banks said they bought
that silver to accommodate the govern
ment. But the sequel proved very soon
that in NV York silver change was
very scarce; in fact, had been cornered,
and was selling at a premium. That
was the secret reason of the purchase.
OF course, during that corner, no appli-
cant at the treasury could obtain silver
In exchange for gold, for that would
have broken the corner and spoiled the
game of the bankers.
The circular referred to was handed
to me in 1885, to prove to me what good
and benevolent people bankers are:
how closely they watch the necessities
and dangers OF the United States treas
ury, and how promptly they sacrifice
tnelr own interests in order to aid the
government. That same old circular
now lies on the table before me- Its
language was intended to cover up the
speculation, and to deceive the very
elect.
In 1893 another panic was predicted.
II not created by the banks. And again
the banks came to the rescue of the
government, putting into the treasury
six millions of gold in lieu of some
form of money which they could use.
discussing the panic of 1893 Senator
Teller referred also to the panic Of 1885.
The senator said:
You, Mr.. President, can remember.
and so can senators all around me.
with what fright the metropolitan press
approached this subject Qo93) They
predicted that if a dollar was taken
from the whole s100,O0O,OOO (of the gold
reserve) catastrophe would be the re-
suit. Then the banks of New York
city, with generosity that they some
times exercise when they see they can
make something by it, and rarely unless
they do, came to the rescue of the gov
eminent, and said they would put in
100000 in gold. That is the second
tlme they have come to our rescue.
fney came to our rescue first in 1885,
congressional Record, August, 1893. %.
1913. -
Will now oner more specific testi-
mony as to the application for silver at
the treasury being refused Every OBJ
server and reader of the memorable de-
Dates IN congress during the extra ses-
sion OF 1893, will remember that most
OF that summer silver coin was selling
at premium over gold in New York
city. OF course every one knows that
such premium could not last for a dav
unless the United States treasury re-
FUSED to furnish silver to supply the de-
mAnd n kho
chant In New York would buv silver
COINS on the street at to 5 per cent
premium when he could take his gold
10 the sub-treasury in the same city
and supply himself with silver change
without premium. So then, in every
case where silver coin in New York is
selling at premium, it may be safely
assured that all applications for silver
at the treasury Offering gold payment
are refused. There is no other explana-
ton OF the existence of the premium.
In his mastery speech of September
IA, 1888, Senator Daniels, of Virginia
referred to this matter as follows:
How Is 1t that If the silver dollar ia
avoided and distrusted men are ready
10 pay a premium of from to 5 per
cent to get possession of it? How is
1t that the secretary of the treasury
tells us that gold has been tapping at
the door Of the treasury during this
panic, begging to be EXCHANGED for the
silver dollars that lie there uncirculated
and disused?"@See Congressional Rec
ord, Appendix, p. 1,479.
Senator COckrell, of Missouri. Oct
3. 1893, referred to the fact of the pre-
MUM on the silver dollars as follows:
The despised and abused silver dol