The herald., 1897-12-23

banking system hereinbefore referred to.
1t may be found on pages 121 to 1913 In
elusive, and is in the following words:
"First-All payments shall ultimately
be discharged in a definite weight of
gold
"Second-The production of gold from
native mines; it's importation, either
coined or uncoined, from foreign coun-
tries; its conversion from bullion into
coin; it's reconversion from coins to bull
lion; it's use in the arts; its expectation
to foreign countries and, generally
| speaking, it's monopolization. seQuestra-
tion and destruction, as well as its use
as money. shall be left entirely in the
hands of the banking classes. and the
prerogatives of the crown shall be linn
tied to the fabrication of coins at the
option and upon the demand of the
bankers, and at the expense Of the pub.
lie.
"Thrd--As gold coins Of less than
about twenty grains would be inconve-
nient to handle, money to represent
small sums shall be coined Of silver,
nickel or copper, and those shall only be
issued to small extent; they shall have
a limited course" of legal tender and
among private parties, and shall be re-
ceivable by the government without
limit, thus making them practically re-
deemable by the government in gold
coin.
"Fourth-As it may be to the interest
of the banking classes to initiate or con-
tract the currency more suddenly than
can be done by means of coins, they
shall control the emission of paper
money by making it payable in the
metal which they are legally empowered
to monopolize.
"Fifth-The government shall divest
itself of any possible means of ascer-
tanning the quantity of money in cir
culation. and the dimension of the meas
ure of value shall only be known to the
banking classes
Soon after the adoption of this law by
Spain Mr.. Adee, American charge de
affaires at Madrid, expressed his ap-
proval of this law, particularly of the
third subdivision, in the following
words:
Spain gives another proof of her vi
tality in joining the ranks of the far
richer nations of Europe, which hold
that silver piece, whatever it's intrin-
SIC WOIlIl, 10 lHcIcly al PlolliisC VIZ NhC
part of the government whose stamp it
bears to pay on demand the amount Of
gold due on it's face" (See Del Mar,
page 1913, also United States monetary
commission, page 4S6).
While, as l said at the outset, the law
proposed by you is substantially the
same as the Spanish law, am confident
that you will agree with me that the
law of Spain, which has been in success
full operation for many years, has GER
tain prestige which no new law could
possibly have, that it is easily under
stood, and no supreme court could pos
sibly misconstrue it; and is one that ev-
cry American gold standard man. and
especially every banker, would appreci-
ate and hail with delight.
If, however, on account of the labor
you have performed in developing and
perfecting your bill you are unwilling to
abandon it even for so admirable law
as the one suggested, trust you will at
least profit by it to the extent of incor-
porating in your bill its salient fea-
lures.
In conclusion. I will say, it has been
suggested by some Of our friends that
some provision should be made that
would take from congress. at least for
fifty years, the right to repeal or mod
ify this law in any manner. l, however,
do not believe that Is necessary; If the
law is once passed it will never be re-
pealed; we can always control either the
executive or one branch of the national
legislature in the future, as We
have in the past, and so you
see the law would be, safe. Just
think for a moment of the position we
have maintained on the silver question.
There is no doubt of the fact that a
great majority of the people have at all
times since 1878 been in favor of the
restoration of the right of the free and
unlimited coinage of silver, but we have
always held them in check, and we shall
always be liable to do so; and in case
of last resort we can rely upon the su-
preme court to protect our vested rights.
Very truly yours, A. ]. UTLEY.
Los Angeles, Cal, Dec. 8, 1897.