The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-03
SILVER CURRENCY.
Certificates Ought to Be Exchange
able Only for the Coin Dollars.


Certificates Ought to BE Exchange
able Only for the Coin Dollars.
The silver certificates, being the expressed
representatives, dollar for dollar, of silver
dollars deposited, ought to continue to be
exchangeabe only for silver dollars. The
value of the subsidiary silver coins more
largely exceeds their bullion value than is
wise even in the case of token coins. They
might be called in and recoined; but the
expense and inconvenience of that operation
are such as to render its postponement ad-
visable AS the owners of a large stock of
silver bullion silver dollars, and subsidiary
silver, the people of the United States are
directly interested in the continued use of
silver as currency, provided that the silver
can continue to be maintained at par with
gold.
The silver dollar is by reason of its size
and weight an inconvenient coin carry
about the person or use in change. Most
people, therefore, do not desire to use silver
dollars as currency, if they can have, as
representatives of the coin dollars notes in
denominations of 81, 50 and IS. Even with
the inducement of free transportation from
the treasury, it has never been possible to
force into circulation at any time an amount
of silver dollars exceeding $67OOO,OOO, and
there are now outstanding only $50 1876, rs,
of which at least $4,000 600 are held by the
national and state banks On the other
hand, there are in circulation 1854 355 OBJ of
notes of the denominations of 81. So and s5
of which 1854 965, ,473 are silver certificates
and $199,SS ,55S are United States notes,
treasury notes of 1890, and national bank
notes. OF the total amount of silver GER
tifcates outstanding, AS are, as be-
fore stated, IN denominations Of 81 y and 80
and $229, 20oO3l are in larger denominations.
If, therefore, the United States notes, treas
ury notes of 1890, and national bank notes
of the denominations of 81, 81 and So be re-
tired their places can be taken by fur
ther issue of silver certificates to the amount
$lS9, 1853, ,05S in denominations of 81, Y and IS,
and an equivalent amount of siver certifi-
Gates of larger denominations b. retired,
leaving of the 1929 205. .031 now standing
in larger denominations $29 ,4f5 TO be re-
deemed in silver dollars when presented for
redemption. IT, also, the silver dollars now
in circulation and amounting to $50 l96,77S
should be deposited in the treasury the bal
of $29 ,S15 473 of silver certificates in de-
nominations exceeding 50 could be replaced
by an issue of silver certificates in denOm
inations of ST. 81 and s.. and there might,
without any expansion of the present out
standing circulation be a further issue of
silver certificates in denominations of ST. 81
and $5 amounting to $50, ,3S1, ,30o, based upon
the silver dollars so deposited The place
of the retired United States notes, treasury
notes of 1890 and national bank notes of
small denominations would be taken by an
issue of notes of large denominations of the
same kinds, so long as the United States
notes and treasury notes of 1880 are unre-
deemed.
The effect of this plan will be that the
currency of the country of all denOmina-
tions below $40 will be silver coin, and silver
certificates based upon silver dollars held
IN the treasury, supplemented by gold COINS
of the denominations of $3.50 and s..
WOULD STAY IN CIRCULATION.
The government has received the full face
value for all the silver dollars which have
been put In circulation either in Kind or by
means of representative certificates. The
silver coins differ from the note issues only
in the fact that the material of which they
arc made has some market value as bullion.
They are, nevertheless as justly obligations
of the government and as properly eX-
changeable at par for gold as the United
States notes. A gold reserve must, there
fore, be provided for such exchange; but
as the retirement of the United States notes,
treasury notes of 1890, and national bank
notes of denominations less than $40 will
leave the silver dollar, the silver certifi-
Gates in denominations of 81, 81 and 50, the
subsidiary silver, the minor coins, and the
gold coins of the denominations of $3.50 and
S. as the only currency for small transac-
tions, it Is probable that the trade Of the
country will keep the silver and is repre-
sentatives in circulation, and prevent the
coming in of any considerable quantity OF
that currency. 1t is also TO be observed
that when popular confidence shall have
been restored as to the maintenance OF the
rency system there will be no general de-
sire to exchange silver dollars or silver GER
tificateS for gold, for the silver currency
will then be, beyond question, as good as
gold.
The treasury has an asset in its silver
bullion not held against outstanding certth- |
Gates, which may be utilized by selling 1T
from time TO time as the German govern
ment has done with it's surplus SILVER. 0t
in such quantities not to unduly depreSS |
the market for silver bullion. 1t is, there |
fore, suggested that authority be given to |
the secretary of the treasury to make such |
sales in his discretion.
1t may be well TO consider whether the |
sum of S452 1872 of silver dollar pieces, |
with seignorage of over 50 per cent, which |
remain as the evidence of a serious danger |
to the existing standard, is not too large
to be permanently retained in our currency; |
and If this should prove to be the case, |
whether a sufficient number of these silver
dollars should not be ultimately, although
not Immediately withdrawn and sold as
bullion.
of finance that the government should raise |
by taxation revenue adequate to it's neces-
sary expenditures. But as the revenues
are sometimes deficient it is advisable that |
power be given to the treasury TO sell short
term bonds to supply such deficiency. Tn |
der existing legislation only long-term bonds |
can be sold; and If the government comes
into possession of a surplus such bonds |
cannot be retired save by purchasing them |
at a. premium. On the other hand, short |
term bonds can, under a securely estab-
lished currency system, be negotiated at
low interest rates; can be, If necessary ex- |
tended at maturity, and can be retired by
purchase In advance of maturity without |
heavy loss in payment of premium. For |
similar reasons il is suggested that long |
term bonds should contain a reserved OPP
It IS to the Interests Of the government |
and Of the people that all the people should /
have an equal opportunity OF investing their |
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