Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-02-07
SO ASSERTS CHAIRMAN BAKER IN
REGARD TO SILVER.
CALLS 1T DECEASED CURRENCY.
HE REFUSED SILVER DOLLARS IN
PAYMENT OF A DEBT.
Head of n Michigan Democratic COM
mittce Declares BIand-AIIison
Act Unconstitutional, and,
Carries the Issue
Into Court.

Detroit. Mich. Feb. 6.-Fred a. Baker.
chairman of the Democratic state central
committee, who refused 36i silver dollars
rendered him 10 release 4 mortgage held
on piece OF property in Oakland county,
owned by Stephen Baldwin, of this city,
and against whom suit was brought by
the latter in the Oakland circuit court, has
through Albert II. Hall. filed his answer
10 the suit. The cause is friendly one
and, although for an insignificant amount,
the principle is considered of great import
ance.
In his answer Mr. Baker attacks the con-
stitutionaIity OF the Bland-Allison act and
the governments right 10 ''debase the coin
age as he puts it.
Mr.. Baker AYERS congress has no more
authority or power. as far as pre-eXistlns
contracts for the payment Of money are
concerned, to diminish or increase the num-
ber of grains of pure gold or pure silver
:n the dollar In which a contract has been
lawfully expressed than il has on pre-eN-
listing contracts TO change the number or
grains in an ounce or the number OF ounces
in a pound or the number of inches in q
foot or feet in yard, or to change any
other standard of weights or measures.
Nor has congress, where contract at the
time it was made was lawfully payable
only in dollars containing certain number
of grains of one of the precious metals,
any power he says. to change the dollar
of the contract to dollar OF the other
metal of less or greater value than the
former.
silver Bullion Purchased.
By the act of congress Of February r.
1S73 he says the subsidiary silver coinage,
with its limited legal tender quality. was
continued. but the standard silver dollar
h.
tender laws, and II was provided that the
standard gold dollar shall be the unit OF
value"
The act of congress commonly known as
the Bland-Allison act. he points out. was
passed over the veto of President Hayes
February 2s, 1873, and its purchasing
clauses were in force until August IL. 1880,
when they were supplanted by the pur-
chasing clauses of the act of congress of
July H. 1890, commonly known as the Sher-
man silver law. The purchasing clauses of
the latter act remained in force until re-
pealed by the act of November ], 1893.
The total amount of silver bullion pur-
chased by the government under the
Bland-Allison act. Mr.. Baker says, was
POI. .212 0lS fine ounces of the mint or COIN
age value OF 81 2929 an ounce, or a total of
SS76.575.4 492. This silver bullion, however,
was purchased at its market price from
month to month, and the aggregate cost
thereof was only SOS, ,2I9. go, showing net
profit or seigniorage realized by the gov
ernment of s6S. 296, 222. The total amount of
silver purchased under the Sherman sill
yer law, he says. was 16S,6i4.6 line ounces
of the mint or coinage value of S2lS 079, 1896
The actual cost, however. was only S55,-
S3l,002, showing net profit or seigniorage
rs of $62,14s.49i. The net profit or seigniorage
under both of these acts. it is stated,
amounts to sl30,444,12G.
All of the silver bullion purchased under
the Bland-Allison act, Mr.. Baker contin-
ued, has been coined into silver dollars, and
the government has realized the whole OF
the profit seigniorage thereon.
The defendant has been informed and
believes believes, and he charges the fact to be-"
13. 1897. when the said Stephen Baldwin, the
complainant herein, rendered to this de-
fendant the said 3G4 silver dollars in pay
silver in New York was 5sI4 cents. or hun
dredths parts of United States gold dol
silver bullion in said 36i silver coins so ten
dered was only Sl63.9. There are i3i. .2l2, GO
silver dollars in circulation either in coin
or in silver certificates, representing the
coin, but the real value thereof in gold is
only sl95. .395 $780,
The silver dollars coined by the Unit ed
States under the Biand-Allison act and the
Sherman silver law, says Mr.. Baker were
not coined or issued promises TO pay
Oi lne part Oh the government, and there
rs no act OF congress authorizing the sec
retary of the treasury TO treat them as
promises TO pay or authorizing him to re-
deem them either in gold or in United
States legal tender notes.
Calls II Debased Coinage.
This defendant submits" SAYS the an
swer. that said silver dollars are nothing
mere or less than,a debased coinage, such
as was arbitrarily issued in England by
Henry VIII. and Edward VI. but which
and which was subsequently attempted by
Charles J., but which, upon the advice and
onanswerable reasoning of Sir Robert Cot
ton and others before the king in council,
WAS promptly recalled before any public
injury had been done.
The defendant submits that at the time
the constitution of the United States was
adopted il had been recognized and con-
ceGed in England for more than a century
ana halt that a debdSement OF the coinage
Vas not lust. proper or legitimate exercise
of the prerogativeS of the crown or the
powers of parliament: and this defendant
therefore insists that the constitution of the
United States in veStiug congress with Ger
tain enumerated Legislative powers and in
recurring the powers so granted 10 be eN-
ercised subject to the great fundamental
requirement of English constitutional lib
erty that no person shall be deprived of his
life. liberty or property without due process
of law. prohibited congress from imposing
ana infic'ing upon the people any suci!
drbascd coinage that provided by the
Biand-Allison act and the Sherman silver
law"
Legislation Is Attacked.
While conceding to congress power to
change the standard of value and of pay
ments AS far as future contracts are con-
cerned. Mr.. Baker denies that congress has
power. where one of the precious metals
has fallen in value as compared with the
other, Ito purchase such deprecated and
deprociating metal and issue it as of full
value, and retain the scipniorage as so
much net profit or gain for the pockets or
Golfers of the government. substantially
II not precisely. as the despotic kings and
princes OF a former age We're wont to do
when they were guilty of a debasement of
the coinage.
lnasmuch as the Bland-Allison act did
not open the mints 10 the unlimited COIN
age of silver on private account on an
equality with gold. "as had been the con-
tinuous policy of the government from Ice
TO 1873" Mr.. Baker says that Congress
thereby treated silver as deprecated dis
credited or debased metal and announced
fits purpose to continue 10 treat it, and
that upon the facts set forth in this answer
I'm regard 10 the depreciation In the gold
price of silver at the time said act was
passed the provisions making silver dollars
coined from silver purchased under said
act legal tender without limit as Ia
amount were and are unconstitutional and
void. Under the constitution and the valid
acts of congress silver dollars are only n