The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-01-05
the ranks Of the small band Of bold. able
and aggressive leaders who at present DOM

the ranks Of the small band Of bold. able
and aggressive leaders who at present DOM
mate the policy Of the Democratic party.
who believes for an instant that the OPEN
ing Of our mints to the free coinage of sill
yer at the ratio Of ls to will raise the
value Of silver bullion from its current
commercial price to its mint price, meas
ured with relation to gold.
THE Democratic advocates OF free coin.
age are not in any sense bimetallists, but
silver monomctallists Of the most pronounce
ed type.
''The second section provides for re-
serve fund OF Sl50. 1000 in gold to secure
the prompt and certain redemption Of out
standing United States notes and treasury
notes. This fund Is Increased $50,0Oo.000
over that which is now held by the treas
ury for redemption purposes
THAT this amount of $50, ,000, 900 can be
held without embarrassing the treasury
will be evident when we consider that the
total amount OF gold in the treasury on the
1st of November, 1899, exclusive OF the
amount held to pay gold certificates, was
$252 900, 600 and the available cash balance,
including the gold reserve. was $3.50 100000.
This section makes II the duty Of the
secretary of the treasury to replenish the
reserve fund from time to time by the
use Of the notes redeemed. This he may do
by exchanging the notes for any Of the
funds Of the treasury or money which may
be deposited at the treasury or subtreas-
ury; or he may use the notes for securing
gold coin under the provisions of section
800 Of the Revised Statutes.
''In case all Of these methods shall fail
and the gold in the fund shall fall below
500 100000 then It becomes his duty to cell
United States bonds. the proceeds to be
used to restore the fund to the maximum
amount by paying the gold SO obtained into
the general fund Of the treasury and then
exchanging for 1t an equal amount Of notes
which have been redeemed from tho re-
serve fund. The committee having In View
the rapid increase in the gold production
Of the world and the equally rapid increase
in the available stock Of gold in the coun-
try are Of the opinion that It win not be
at any time necessary to sell bonds under
the provisions of this section
Aldrich quoted statistics on the gold pro-
duction to show that there will be no diffi-
Guilty in securing. by use Of notes, the gold
which will be necessary to maintain the
fund at its maximum amount.
'In considering questions affecting the
adequacy and use of the gold reserve, we
are bound to inquire into the ability OF
the treasury to maintain an equality Of
value between the silver dollar and silver
certificate and the gold dollar, without pro-
vision for direct exchangeability. Our own
experience and that OF other countries,
notably France and Germany, clearly
prove that 1t is possible to keep in circula-
tion at a parity OF value with gold large
but limited amount of legal tender silver
or notes based upon such silver without
any provision for q compulsory redemption
in gold.
"The amount of silver certificates in cir
culation on the LIST OF December, 1893,
was $394, 800, and of standard silver dol
lars SIS. 2S2 ,454, a total OF $47255.254 This
amount WIN be gradually Increased by tho
silver coinage which will take place under
the provisions Of the act of June 13. 1893.
Both silver dollars and silver certificates
are by law receivable for all public dues
and as long as the ordinary receipts of the
government ars more than $600,000,000 per
annum. 1t is evident that silver certificates
are not likely to go to discount.
THE government itself, in the absence CT
a positive Injunction, would be bound to
maintain the value OF this form Of cur
rency, through the ordinary business chan
nels Of exchange, for seif-protection.
1.-THE committee does not suggest any
changes in the status of the silver dollar
or the silver certificate. We do not pro-
pose to take away from silver any of the
monetary privileges or prerogatives which
1t now enjoys. In fact, we believe tho
legislation suggested will greatly strength
en- its position in our monetary system.
''The third section makes 1t the duty
of the secretary of the treasury, as fast
as standard silver dollars are coined, as
required by law, from the bullion pur-
chased under the act Of July IA, 1890, to
retire and cancel an equal amount of treas
ury notes, and provides that upon cancel
lation of the notes silver certificates shall
be issued against the silver dollars SO
coined.
'The fourth section authorizes and d.
rects the secretary Of the treasury to re-
ceve deposits Of gold. coin and to issue
gold certificates therefor, In denominations
of not less than $40. The provisions Of this
section are in most respects the same as
those contained in the twelfth section Of
the act of July IL. 1882
1.-THE purpose Of the section as a whole
Is to give certain and active monetary use
to the large and rapidly increasing amount
of gold in the country.
1.-THE fifth section provides that no Uni
ted States notes or treasury notes shall
hereafter be issued or reissued in denom-
nations of less than SO, and all such notes
of smaller denomination, whenever re-
deemed, shall be cancelled and notes Of SO
or upwards substituted therefor. 1t also
provides that no silver certificates of a
higher denomination than $40 shall be is
sued
saTbe sixth section gives 70 the secretarv
of the treasury power to convert a portion
per cent interest. The proposition contem-