The Oskaloosa herald., 1902-07-31


object attained by coming the bullion
is the creation of the seignor age
which is the difference between the
cost of the bullion and the face value
of the coin, the former being about 90
cents and the latter 81. 30 per ounce.
| On the other hand, while the silver
dollar is not in demand, there Ia a
steady and growing demand for dimes
quarters, and half dollars, and an ex-
listing statute for some unaceountable
reason limits the stock OF these coins
in the country to s1Oo, 1000, 900, which
will be reached before congress meets
In December. The monetary act of
1900 authorized the coinage OF these
fractional pieces within .this limit,
from the bullion purchased under the
act of 1890, but there is no other or
further authority for their issue.
That there will be steady and inn
perative demand for the fractional
coins Is as certain as that the popu-
lation and business Of the country
will increase and under the laws
which govern their issue and redemp-
tion there is no necessity for any linn
it upon their coinage. They are not
q legal tender for sums above Ave
dollars and therefore cannot be fore
ed into circulation, and they are re-
deemable in sums OF $40, and there
fore can be retired whenever they ac-
eumulate in an inconvenient amount.
The commercial world is supplied by
the banks and the banks get them
from the treasury in exchange for
lawful money. When the trade slack
ems they accumulate in the banks and
are returned to the treasury. The
net absorption of these coins by the
country is averaging $1,000, 900 per
year.
The limit should be removed lfrom
the coinage of these convenient tok-
ems, and the entire stock of bullion
remaining in the treasury should be
diverted to this use. That an addi-
tional coinage will be authorized is
certain, but the democrats In con-
gress are opposed to diverting the
present stock of bullion for that pur-
pose. Their policy is to force the
government, Notwithstanding it's g.
normous purchases covering period
of fifteen years, to re-enter the mar
ket as q buyer of silver.
The Hill bill proposes to not only
stop the coinage of dollar pieces but
after the bullion in the treasury has
been exhausted, to meet further de-
mands for subsidiary coins by the re-
coinage of dollars. This is the pol.
icy upon which Germany, France,
and the other countries of the Latin
Union have entered, l. e., the reduc-
tion of their full legal tender silver to
subsidiary coins.
The dollar coin Is an anomalous
piece of money. 1t is not standard
money, for it circulates, not at It's
own value but the value of the gold
dollar. 1t is not an economical form
of token money, because paper
would serve the purpose as we'll and
be cheaper. 1t can not be said that
the silver dollars in the treasury per-
form any effective part in the none
tary system of the country. They ara
| simply a miscellaneous asset of the
treasury. The certificates, while
nominally issued against them, are
actually charge upon the general
credit of the government, and are
sustained at par by that and the fact
that they are limited in quantity, are
in convenient denominations, and
are received by the government for
all dues. They constitute large ell
ement in the monetary stock of the
country, and are unquestionably an
element that Is viewed with sus-
picion, and for that reason are a
source of weakness whenever there
is financial strain. Mr.. Hills propos-
al would gradually reduce the stock
OF dollars In the treasury and of cers
tificates in circulation, but it would
operate so slowly that the withdraw
al would be without disturbance, the
annual additions to the stock of gold
furnishing an ample money supply.
The whole policy of silver purchase
is now demonstrated to have been q
mistake. When it was insugurated
the bullion value of the silver dollar
was about 80 cents, and it was hoped
that the governments purchases
would advance the price to the gold
par and that free coinage might be
inaugurated. Instead of having that
effect the new demand stimulated
production and the price fell until the
policy was definitely abandoned.
The Hill bill furnishes q policy by
which the government may gradually
I, retrace it's steps, reform our none
tary system upon lines scientifically
correct and approved by the expert
ence of the world.
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