Mexico weekly ledger., 1898-09-29

Some people know what is meant by
''the seigniorage," and some do not.
To many 10 IL q profound mystery. No
living man knows al much about the
coinage question as Mr.. Bland. He has
given the study Of o lifetime to the sub
ject and has brought to its considera-
sion perfect honesty of purpose and q
patriotic heart. On this and kindred
subjects there is, there can be, no high
er authority than Richard Parks Bland.
Here is his definition:
Now, Mr.. Chairman, what Is this seignior-
agef 10 is simply to coin the bullion held In
the treasury In excess OF what is necessary to
redeem the outstanding notes issued for the
purchase Of this bullion. Under the law known
a. the Sherman law notes were issued for the
purchase Of the silver bullion now In the trens-
ury. Under that statute this bullion must be
coined, as much as may be necessary, in the
discretion Of the secretary Of the treasury, for
the redemption Of those notes, and the law IT.
self stateJ what IL the seigniorage. It is that
part that IL not necessary for the redemption
Of the notes, or, in other words, it is that part
which accrues as o profit, and that profit the
excess Of the coin above what il necessary for
the redemption Of the notes. That act was
passed by the Republican party. We propose
to pursue that act, except that we first coin
the profit Of the seigniorage and make 1t i'm
,mediately available, and that Is the Only change
that we make in respect to 1t.
People who read these letters should
commit that definition to memory, as it
forever disposes Of the ~variegated and
fallacious twaddle with which gold mon
ometallists Of high Iepute constantly
seek to delude those who have neither
the time nor means to investigate these
questions for themselves.
No Reason For . Bond Issue.
Mr.. Bland closed his speech with the
following ~irrefutable piece of logic:
There can be no good reason, SO far as the
prosecution Of the war Ii concerned, for resort
ing to the extraordinary power Of issuing in
terest bearing bonds- We are not In favor Of
increasing the bonded debt of the government
for many reasons. In the first place, 1t e q
mortgage upon the future resources that we
ought not to make, for we know not what the
future may bring forth. Other occasions may
arise for pledging the credit Of the govern
ment, and should such occasions occur our
credit and our ability to raise money would be
restricted in proportion to the magnitude Of
our bonded debt.
Our bonded debt at this time mounts to a
little less than SOC, Gee. 900. The present bill
proposes to issue $500, 100000 more Of bonds,
pay dBlc, pTluClpa4 II " IstI IA Will ZIG
bonds subject to redemption after ten years
and due In 20 years. The bill also provides for
Issuing 500, oO0, 900 Of certificates of indebted
ness, payable in one year In lawful money and
bearing 8 per cent interest, 80 that, rs a mat
ter Of fact, the bill contemplates borrowing
500. 0oo. 900. bearing interest ut the rate Of 8 per
cent
Fixed on the People.
But in calculating the bonded debt you have
practically fixed upon the people Of this ooun-
try we will only include the $500. 000, 900 of 1920
bonds before stated. This, with our present
bonded debt Of $500, 600, 600, as before stated,
amounts to 81, 400, 000, 900. Inasmuch as it can
not be claimed with any reasonable certainty
that q single one Of these bonds would be nee
essary at all, provided our propositions for is
suing treasury notes and the coinage Of the
seigniorage and other measures alluded to were
adopted, we fear there are parties whose in
terests are being subserved in this bond issue
and whose interests are not being neglected,
but, on the contrary, are being well cared for
in the name of patriotism. I allude to the ma
tional banks and to those who believe in bank
currency.
The increase of our currency by issuing $780,
10000 in g~reanbacks and so, 000, 600 Of silver,
making near s2O0, 900, 900 in all, would tend to
increase prices and stimulate business by Civ
ing employment to labor, thus enabling our
people to meet increased taxation and war ex-
penditures without feeling any great burden.
On the contrary, il we issue 500,0O0,o Of In
terest bearing bonds, the money paid for these
bonds Will go into the public treasury and in
q great measure be boarded out Of circulation,
decreasing prices and prostrating business.
We cannot afford to do this in face Of the fact
that we have not now q sufficient amount Of
money in circulation.