Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-02-05


notes, which many persons seem to think
belong to the government, 346 millions be-
long to the owners of silver certificates of
which only IA millions are held by the
Treasury.
The Silver Seigniorage.
The second provision of the Senate sub
stitute authorizes the issue of about 20
millions of silver certificates representing
1t is said, what would be the seigniorage or
profit on the coinage Of the silver bullion
purchased under the act of 1890 at a cost of
124 millions after it shall have been coined
In other words. this provision directs the
Secretary of the Treasury to issue certifi-
Gates falsely certifying that about forty
millions of silver dollars coined from this
l24 millions of bullion, have been deposited
In the Treasury, when not one has been or
can be deposited, for the reason that not
one has been coined And even these GER
tihcates, representing the so-called segnior-
age, are devoted by the provision to the
payment of current expenses and afford
not one silver dollar for the redemption of
greenbacks.
In view of the fact that under existing
law the silver bullion in the Treasury pur-
chased by the issue of Treasury notes I'M
der the act of 1890, is gradually being
coined and the silver dollars used in re-
deeming and cancelling such notes volun-
tarlly presented for redemption in silver in
order to obtain silver certificates of small
denominations-1S millions having already
been used and the most of it within the
past year, so that now only 137 millions of
treasury notes are outstanding and within
few years all will be thus redeemed and
cancelled, and the real seigniorage covered
INTO the Treasury-it is difficult to under
stand any excuse for the Senate provision
requiring false silver certificates to he is
sued which would simply greatly increase
the distrust by fastening by illegitimate
means the utilization of the Treasury bull
non IN SUCH a manner could not fail to
The repeated declarations that the first
provision OF the Senate amendment author
iZing the free and unlimited coinage of pri-
vate silver by the minis of this country aft
the ratio of 1G to l is the main feature of
the legislation proposed by the Senate as
a substitute for the House act and that
upon which reliance is placed to relieve the
situation of the Treasury and restore con-
hdence and prosperity to the country that
1t becomes necessary to inquire on what
grounds this expectation rests.
Free Coinage.
1t is evident that the free coinage of pri-
vate silver on the basis of regarding sixteen
ounces of silver the equivalent Of one ounce
of gold, when in every market of the world
one ounce of gold will now buy 80 ounces
of silver, cannot give the government sin
gle additional dollar either for the redemp-
ton of greenbacks or Treasury notes or for
any other public purpose. 1t is private silver
only that is to be coined and every dollar
coined from the silver brought to the minis
Is to be returned to the private owner of the
bullion-two silver dollars for every dollars
worth of silver taken to the mint--and the
Treasury is out to the extent of the cost of
coming The necessity of maintaining the
coin redemption fund by the only means
open-that of selling bonds to purchase coin
is not removed by providing for the free
coinage of private silver.
Where, then, is the advantage to the gov
eminent and the people who do not own
silver bullion? 1t is replied that it will be
found in the restoration of silver to its
former place as yoke-fellow of gold by
which this country will have both gold and
silver freely coined and permanently con-
currently in circulation as the money of
the people, or in other words true bimetal-
ism.
If 1t be true that opening of the minis of
this country alone to the free and unlimited
coinage of private silver at the ratio of 16
| to 1, would give this country the permanent
concurrent coinage and circulation of both
gold and silver as money, which is the popu-
lar understanding of the meaning of bimetal-
ism, then such coinage would be welcomed
But what is the evidence that the opening
of the minis of this country to the free and
unlimited coinage of private silver on the
basis of regarding 16 ounces of silver the
equivalent in coinage of one ounce of gold,
would result in bringing gold as well as
silver to be coined and permanently con-
| currently circulated when in every market
of the world b ounces of silver is now the
Gold Would Be Withdrawn.
1t must be conceded that under free and
unlimited coinage Of private silver bullion
after sufficient time had elapsed to give
an opportunity to get into full operation,
there could be no material difference in
market value between 371A grains of fine
silver in the form Of bullion before coinage
| and 371A grains Of silver coined into a stand
| ard silver dollar; for no owner of silver here
| or abroad would sell BIN grains of silver
bullion materially less than he could dispose
Of silver dollar coined from such silver.
when he could have his bullion converted
into single dollar without cost to himself.
This Is exactly what is found to be the ca Sc
under the free and unlimited coinage of gold
The gold bullion required to mint gold dol
lar is worth the same before coinage as after
1t follows from this that gold would nor
| be brought to our minis for coinage on the
basis of regarding one ounce of gold as the
equivalent in coinage of only 16 ounces of