The Montgomery advertiser. [volume] (Montgomery, Ala.) 1885-1982, 1904-08-07
4 DETERRINa PRECEDENT.

Senator Fairbanks. the Republican
nominee for vice-Presidentis said in his
acceptance speech:
In Congress and not with the Presi-
dent rests the supreme power to. deter
mine the standard of our money.
Though the Chief Executive should OPP
Independent constitutional authority.
could at any time overthrow or change
the monetary standard.
That is unquestionably true. There
was q notable and deterring demonstra-
ton OF its truth in 1878. when Repub-
lican Senate passed the Allison silver
bill over the. veto OF a Republican
President. requiring a two-thirds vote
in the Affirmative. That was an in
teresting and instructive incident in
our history. which should be well re-
membered at this particular period.
As is generally known the act Of
1873. known as the crime Of 1879"
omitted the silver dollar from the list
OF coins to be coined a. our minis. and
left the gold dollar the unit OF value.
The Allison act Of 1878 displaced the
gold standard and substituted the
'1imping" standard. that is the double
standard. with two units of value of
unequal intrinsic value. The House,
which was Democratic. passed a free
coinage bill. pure and simple. It
made the standard silver dollar a legal
tender for all debts. public and private,
and authorized the deposit of silver
bullion in our mints by any owner
thereof, to be coined into standard sill
yer dollars for his benefit, upon the
| same conditions as gold bullion was
then deposited under existing law.
| This bill, known as the Bland bill
was voted for by William Mckinley,
| then a member of the House. When
II went to the Senate 1t was amended
| by the substitution of the Allison
| amendment which authorized the pur-
| chase of not less than $4,000, 900 worth
of silver bullion per month to be coined
| into standard silver dollars. 1t also au-
thorized the issue of silver certificates
| to holders of such silver dollars upon
| their deposit with the Treasurer Of
the United States, such certificates to
be receivable for customs, taxes and
| all public dues. The House concurred
in the Senate substitute and President
Hayes vetoed the bill. The House and
| Senate both passed the bill over the
| Presidents veto. Mr.. Mckinley again
voting in the affirmative, and the SEN
l
| veto of the President by two-thirds
vote. Notwithstanding there was a ma
jority of Republicans in that body.
This was the first step-and very
| long one 1t was-in the direction of a
silver standard. The House, which was
Democratic. passed free coinage bill
| The holders of silver bullion, under 1t,
could have their bullion coined into
silver dollars at the government minis.
The Senate bill. fixing the minimum
of monthly purchases at 100000
worth and the maximum at 100000
worth. put the government in the mar
ket as a purchaser of silver bullion to
be coined into silver dollars practi-
t-caiiy= 60 be paid for by its silver GER
tificates made receivable for customs
taxes and all public dues. One of the
effects OF thiss lesislation is still felt.
| for there were held idle in the Treasu-
! ry July S1st. 469. 645. 900 silver dollars
representing which there were out
standing a like amount OF these silver
certificates-in other words, we have
| two dollars. only one OF which is use
full.
It was carefully estimated by the
| Republican Senators and the silver
barons some of whom were also Sena-
tors that the monthly output of silver
would not exceed 100000 and thus,
1t was supposed. a market for all tho
silver of the country was provided by
this law.
But later on in 1890, when the Re-
eminent, in order to meet the further
| demands of the silver barons. the
| Sherman silver law was passed. which
directed the purchase each month of
100000 ounces of fine silver, to be
| paid for In Treasury notes redemable in
coin and legal tender for all debts,
public and private. or these pur-
| chases there remains in the treasury
silver bullion which cost s4,916,944.
There are also In the Treasury silver
dollars coined from bullion purchased
under this act amounting to $7.736.O56.
consequently there are outstanding
Treasury notes issued in payment
therefor amounting to s12.653.0 900. Thus
we hold in the Treasury as a trust fund
silver dollars and silver bullion
amounting to $4s2. 29s,oo0 which is
represented or duplicated In our cir
culation with a like amount of Treasu-
| ry notes and silver certificates
The Sherman law was the most
vicious financial legislation, everything
considered, ever placed upon our
statute books. Yet It's author was. in
the Judgment OF his party associates.
the greatest Minister of Finance in his
day. Had that law remained In force
for any great length of time longer, 1t
certainly would have driven this coun-
| try to a silver basis. Fortunately the
Democratic Party came into power In
1898 and by the logged persistency
and indomitable will of Grover Cleve-
land, aided. it Is true, by Republican
legislators. who thought they saw in