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(fongmstflttal FIFTY-FIRST COjSTGEESS, FIRST SESSION. Free Coinage o f Silver# SPEECH OP HON. JOHN LIND, OF M IN N E S O T A , In the H ouse of R e p r e s e n t a t iv e s , Saturday, June 7, 1890, The House having under consideration the bill (II. It. 5381) authorizing the Issue of Treasury notes on deposits of silver bullion— Mr. LIND said: Mr. Speak er : No one who has followed the discussion of this ques tion or noted the expressions of members of the House in private con versation can escape the conviction that our industrial conditions are not as prosperous as they should be. Trade is dull, enterprise is lagging, and it is conceded by all that our agricultural interests are suffering. No expression has been more frequent on tlio floor at this session than this: We must do something to relieve the farm ers. Everything has been suggested for their benefit, from a bounty on sugar to a tariff on hides. Our friends on the other side suggest free trade. What promise is there in that ? While our agricultural interests are suffering, the condition of the farmers in free-trade England and Ireland is abso lutely deplorable. Something must bo done. But to intelligently propose and provide a remedy we must carefully study the situation and its cause. The district which I have the honor to represent is a typical agri cultural district. We have no other interests. We have had aver age crops for a series of years. Last season we had a most bounte ous Jbarvest, except in a very small portion. We are favorably situated. The great American cereals of wheat and corn are equally at home with us. Our production of flaxseed I have called atten tion to heretofore. We have an abundance of natural meadow, and onr farming is thoroughly diversified. Our population is as diversified as our productions. The nativeborn American element predominates and gives bent and spirit to our efforts. We kave many Germans and Scandinavians, aud some Irish; all are intelligent and industrious. There is ample opportu nity for comparison of methods of work; no lack of rivalry. Our people do not observe any eight-hour law, I assure you. We are not suffering. Wo are not poor. It might even be said that we are rich in goods and lands, but we are not prosperous. Those who are un fortunate enough to have a mortgage on the farm, either for bor rowed or purchase money, are barely able to pay the interest and despondent over the prospect of their ability to pay off the principal. Those whose farms are clear are restless because they can not better their condition. Things are at a fi stand-still.” We have plenty to sell, bat no buyers at “ living” prices. Wheat is60 cents; cows and steers, $10 to$l.>. My father wrote me the other day that he had just sold 6 head for §00. For produce there is hardly any market at all. Wo are within 250 miles of Lake Superior; have a' network of railroads and easy access to the markets of this country and of Europe, but find no buyers at adequate prices. All agree that the immediate cause of our depressed condition is the prevailing low prices of all commodities, and especially agricult ural productions. This lowering of prices commenccd in 1873-74 and has continued with but few interruptions to date. It has af fected all classes injuriously (except the moneylenders); but the farmers the most severely of all. The reason of this is plain. The farmers profits (wages) depend on the value of the surplus of his crops after paying for machinery, store bills, and other expenses. While it is true that a bushel of wheat will go as far as it ever did in exchange tor commodities, it is also plain that the surplus, the profit, or wage-fund, is more than one-third less than it was in 1873 for the purpose of paying taxes, interest, mortgage indebtedness, or purchase-money on land. To illustrate, we will assume that the wheat crop of the average Minnesota farm was 1,000 bushels in 1873, and the same in lccl). The amount of wheat required to pay for machinery, to pay store bills and other expenses, and for seed was the same as last year—say 700 bushels. According to the table of prices which I will submit further on, the surplns of 300 bushels was worth in New York in 1873, $393, and in 1889 only $267. Mr. VANDEVER. Has there not been a reduction in the price of transportation between Minnesota and the seaboard? Was it not lower in 1889 than in 1873? Mr. LIND. Undoubtedly; but I will say to my friend from Cali fornia that, making due allowance for that difference, the difference in prices at home is nearly as large for the respective years as the difference in export prices. I chose to take the export ligures from the statistical department in preference to the figures of our own publications at home, because the former can not be questioned. Mr. VANDEVER. But the price of transportation at the present time is less than it was in 1873. Mr. LIND. It is less, certainly; but I want to say to my friend in that connection that there is need of still further reduct ion. Taxes, interest, and mortgage indebtedness, which must be dis charged from this surplus, remain about the same now as in 1873. This, to my mind, tells the story. But while we agree as to this, there is a radical difference of opinion as to the cause of this fall in prices. Some contend that it is due to the bringing into cultivation of large areas of new land, and to improvements aud inventions by which all processes of indnstrial and agricultural production have been facili tated and cheapened. In other words, that it is the result of “ over production.” To test the validity of this argument, let us glance at the history and statistics of this decline in prices, and also inquire into the facts of this alleged overproduction. The statistical side of the question is best illustrated by what is known as the system of index numbers, which arc ubtaiued as fol lows: Certain staple articles are selected for comparison. The average wholesale price of those articles in a given year, or period, is taken for a standard and marked 100. The variations for subse quent years are indicated by adding to or subtracting from the standard as many points as the average price of the same articles rises or falls. The following tables are by the leading stat isticians of Europe and from localities in which prices were not affected by tariff regula tions: 1. The table annually published by the Economist newspaper, 'rt'hicli gives tho wholesale prices of tWenty-two of the principal articles on the London market, the basis of comparison being the average prices for those articles in the five years 1845-*50 2. A table prepared by Mr. A. Sauerbeck, which deals with the London prices of iorty-five wholesale commodities, the period taken as the basis of comparison being the ton years 1867-77, and his record of prices extendi He as far back as 1837. 3. Tables prepared by Mr. Inglis Palgrave for the royal commission on the de pression of trade, taking the period 1865~*69 as the basis of comparison. These tables deal not only with prices in England, but in France and India; and in fram* kjg them regard has been had to the relative importance of the several articles in cluded in the list. 4. Dr. Soetbeer’s tables, which take the period 1847- 50 as the basis of compari son and deal with the prices of one hundred articles on the Hamburg market, and with fourteen of the principal articles exported from the United Kingdom. 5. Tables prepared by Mr. Giffen from the Tr«4e RMui-ns of the United King, dom, going back to 1810 in the case of exports and to 18*4 in the case of imports. The following statement shows in a concise form tho results arrived at by these several methods: [For explanation of columns 1 to 7, see note at foot of table.] Period. L 2. IftH.................................. 104 100 102 1852.................................................... 1853.................................. 111 114 121 1854 .................................................... 1855.................................................... 1856.................................................... 123 1857.................................................... 136 130 1858.................................................... 118 114 .................................. 115 116 1SC0.................................. 122 121 1861.................................................... 123 118 1862........... ....................................... 130 123 1863 .................................................... 158 125 1864.................................................... 172 129 1865.................................................... 162 123 1866................................................... 161 126 18G7................................................... 137 124 1868.................................................... 122 122 121 123 3. 4. i ' 124 108 111 00 93 80 5. 6. 7. j i........ i i1 j> 100 100 105 ioi !I 1)7 l o i !!........ 105 ” 103’ ’ "i i o 91 94 *io2* *99 99 98 101 103 105 101 137 118 102 100 99 ! 119 108 98 75 78 95 102 CONGRESSIONAL RECORD. 2 Whsatcmp pf iks world. Period. L 2. 3. 4. & 1870 .......... ............. *___ 1871 ........................ ........................ 1872 ...............-................................ 1873................................................... 1874................................................... 1875.................................................... 1876................................................... 1877................................................... 1878................................................... 1879................................................ 1880................................................... 1881______ ______ ___ __________ 1832....................... ........................... 1883................................................... 1884 .......................... ......................... 1685................................................... 1886.................................................. 1887.................................................... 1888.................................................. 122 118 129 134 131 126 123 124 115 100 115 108 111 107 100 95 92 94 101 128 127 136 138 136 130 128 128 121 117 122 121 122 122 114 109 104 103 91 90 97 102 100 95 93 94 87 76 87 81 83 79 75 70 69 70 75 90 93 100 104 108 97 99 100 95 82 89 93 87 88 80 76 73 73 96 100 109 111 102 96 95 94 6. 7. Tear. ST 132 iii’ 105 101 83 88 85 84 82 76 72 & 68 92 02 cents per bushel. the yean nametf 1873..................................................... 41,676,000 42,795,0(H) 43,949,000 45,135,000 46. 351,000 47,595,000 48,863,000 50,155,783 I 51,462,000 52, 799,000 m s .................................. 54,163,000 55.554.000 57.093.000 1880...................................................... 58,420,000 00,018,000 61,521,000 1889..................................................... 64, 554,000 Wheat product. Wheat product Average export per capita. price. Bushels. Bushels. 281,254,700 309,102,700 292,136,000 289,356,500 364,194,146 420,122,400 448,756,630 498,549,868 382,280,090 504,185,470 421,086,160 512,765,000 357,112,000 457,218,000 456,329,000 415,868,000 490,560,000 6.75 7.22 6.65 6.41 7.71 8.83 9.19 S. 94 7.43 9.55 7.77 9.23 6.25 8.00 7.60 6.76 7.77 $1,312 1.428 1.124 1.242 1.169 1.338 1.068 1.245 1.114 1.185 1.127 1.066 .862 .870 .890 .853 .897 S. G. BROCK, Ghitf qf Bureau. TitKASUBX Dktabtuext, Bureau OP Statistics, March 12,1890. Bushel* 92 ‘ "*’ 89 Mr. GEAR. Did not the difference in the value of the currency, 84 90 79 which was at a discount in 1873, account for that? 87 74 82 Mr. LIND. No, sir; all the values that I have given here are gold Ahto the authenticity of these tables, it is sufficient to say that those of Dr. Soetbcer are never questioned. The honorable Secretary of the Treasury in his last annual report refers to him as authority on mon etary statistics. For England Mr. Sauerbeck’s table is probably the most reliable. Making allowance for the difference in standard, the tables show a substantial agreement. They also indicate that the ri.se in prices culminated in 1673. This would naturally lead us to ask what occurred in that year to change the upward tendency that had operated in the preceding fifteen years to one of decline; but of this further on. If t he present low prices are the result, as is claimed, of the extended use of steam ami electricity as well as the invention of labor-saving machinery and better transportation facilities, then I ask, why did not these factors make themselves felt in the fifteen years preceding ls7:J 1 We had steam, electricity, labor-saving machinery, and rail roads then as well as now. Still prices were rising during that whole period, and have been falling ever since. That we make many things more readily and cheaper by means of these appliances of modern civilization no one disputes. But we use and consume enough more by reason of new and increased wants, so that the greater demand for them fully makes up for the increased production. This argument of “ overproduction” and consequent fall of price has been applied to no commodity with more vigor than to wheat. Our farmers are told and cautioned that they must quit raising wheat; that wheat is “ flooding the land,” and that that is what makes it so cheap. This I have never believed, and the statistics of wheat pro duction certainly do not support that view. Last month I requested the Chief of the Bureau of Statistics to furnish me a table showing the population, aggregate and per capita production of wheat, and export price in each year since 1873. I submit the statement pre pared by him. I have also obtained from the Agricultural Depart ment, and will havo printed in connection with it, a table showing the annual wheat crop of the world from I860 to 1887, inclusive. The statistics for the last two years have not been tabulated. Table allowing the population, wheat product, and export price of wheat Population. Year. 1880............................... 2, 111, 000,000 1884............................. 2.293.000.000 1885............................. 2.095.000.000 107 1881...____ _________ 2.025.000.000 1882.............................. 2.282.000.000 1886............................... 2.055.000.000 2, 054,000,000 1887............................. 2.188.000.000 1883............................... '" i o i 06 00 The table of domestic production shows that our wheat crop in 92 88 1882 was nearly 2 bushels per capita larger than in 1887, and the 93 crop of the world neatly 100,000,000 of bushels greater, and still the 92 export price in the former year was $1.24, and in the latter only 89 Explanation of numbers in above table: 1. EconmnLst. Twenty-two wholesale commodities in England. 100=average of 2845-50. 2. Dr. ftietbeer. One hundred Hamburg articles and 14 articles of British ex port. *100=averago of 1847-50. 3. Economist. (Similarto 1, but rearranged on basis of 100=average of 1865-*69.) 4. ^Ir. Palgraru. (Similar to 1, but assigning to each article its relative im portance.) 100—average of 1865-’69. 5. Mr. Sanerbeelc. Forty-ilve English prices. 100=average of 1867-77. (I. 3lr. Prices or ftritish exports. 100z=prices of 1854. 7. 31r. Giffen. Prices of British imports. 100=prices of 1854. Years. Bushels. values. Mr. GEAR. Values based on the value of gold at the time t Mr. LIND. Based on gold. If the gentleman will notice the sta tistical abstract he will see that the gold values and paper values are given in the same column, one in italics and the other in heavy type, and I have taken the gold values. This does not tend to establish the proposition that overproduction has lowered the price of wheat. If any credence is to be given to the bulletins of the Agricultural Department based on our consular re ports, it would seem that the world's stock of breadstuff’s is lower now than it has been for years. The truth of the matter is that while we raise more wheat than formerly, we have more mouths to feed. What is true of wheat is true of other commodities in the main. The meat, the butter, and the eggs, which our merchants will not even receive,'would gladden the heart of many a poor housekeeper in every city on this coast. The so-called surplus stocks of boots, shoes, clothing manu factured articles which burden the industrial centers of New Eng* land and the Atlantic States coaH bo used and are actually needed by the people in other sections. But they are too poor to buy. Tha fact that commodities can not be sold, or if disposed of at all only at ruinous prices, is no evidence either of overproduction or of a lack of demand. The sufferers in North Dakota havo during the present year gratefully received car-loads of cast-off clothing. Suppose that the sara6 clothes new had been put into the little stores in that sec tion to be sold for cash, or on the usual terms of time and security, how many could have been disposed off I dare say not one-tenth, and still they were all needed. The store-keepers would havo failed. The verdict of the commercial agencies would have been, ‘‘ Too heavy stocks—buying beyond the needs of the trade.” What troubles us to-day is not overproduction, but rather u under consumption,” By having their profits (wages) cut down from year to year, as I have* already explained, our farmers have been com pelled to economize, even to the extent of suffering, to “ keep above water.” This, again, has affected the industries of the East, stopped the mills, thrown operatives out of employment, reduced earnings, and lessened consumption there. Does any one doubt but what a workman’s family will use more meat, butter, egjjs, and even flour when wages are* brought home than when work is wanting I I therefore submit that it is neither cheaper processes nor overpro duction that has brought about this condition of affairs, the result of the fall in prices. We must look for another cause. The price of an article, I take it, is the amount of money that it will exchange for. The price of a bushel of wheat is the amount of money it will buy in the market. As stated before, a bushel of wheat will tiny as many articles of other commodities as it did prior to 1873. But it will not buy as much gold, and gold, strictly speaking, is the only money of Europe and of this country at the present time. Gold l?itre'Btand*i,duf valuo.—Ifwo consider wheat the.atand.ard,. its value (as compared to commodities other than gold) has varied but Tittle, while the price of gold has risen enormously. In 1873 a bushel of wheat would buy 33.41 grains of gold; in 1889, only 20.89 grains. If a difference like this should suddenly spring up and continue to increase between the relative value of wheat and some other com modity, say oranges, we in Minnesota would naturally surmise that the orange crop in California was short, or that the market for California oranges had increased faster than the demand for wheat, or both. Perhaps this is the trouble with gold? It seems very reasonable that if gold has become scarcer, both in point of quan tity and relatively for the amount of work that it has to perform, and that the demand for it has increased, it should rise in price in comparison to wheat and other commodities which have not bean so affected, the same as the oranges. I do not contend that prices are in every instance determined by the quantity of money, for credit and methods of doing business are important /actors. But I believe that prices are greatly affected by it. This was clearly shown when the late Secretary of the Treasury made deposits of public money in the New York City banks. Every deposit of money raised the price of stocks aud securities instan taneously. 11 had the like effect on other property, though not so ap parent at the time. The operation is plain. The increase of money enabled the banks to make more loans. Such of the loans as CONGRESSIONAL RECORD. went into Wall street encouraged speculation and sustained or en hanced prices there. The hanks having more cash, more loanable funds, money became cheaper temporarily and enabled those who had manufacturing or other enterprises in view to undertake them. New buildings or improvements were necessary. Th is created a new demand for commodities and raised prices and helped business “ all along the line.” If, instead of a loan to be eventually called back into the Treasury, this had been a permanent increase of the money in circulation, the effect on prices would have been equally perma nent. Such is the opinion of the great writers on political economy. Suppose four-fiftlis of all the money in Britain to be annihilated in one night, must not the price of all labor and commodities sink in proportion ? This question was asked by Hume over a century ago. John Stuart Mill: And, says That an increase of the quantity of money raises prices, and a diminution low ers them, is the most elementary proposition in the theory of carrency, and with out it we should have no key to any of the others, Jevous held the same view. So did Disraeli. So does Goschen. History verifies their views. When the mines of Laurium gave forth their precious stream, prices and prosperity rose in Greece. So it was in Rome when her conquering legions brought home the treasures of the world. In the time of Charlemagne, and subsequent to his reign, the stock of precious metals was lower than ever before or 6ince. Prices fell and the masses were steeped in poverty and ignorance for centuries. With the discovery of America and the acquisition of her stores of gold and silver, prices rose as if by magic. Mankind in Europe rose out of the depths of degradation. Tho germ of liberty and civilization, which had lain dormant for centuries, started again and humanity entered upon its present career of advancement and civilization. Another impetus was added by the gold of California, and Australia, in the decades succeeding the discovery of which man made the greatest progress in intelligence and comfort, and in the establishment of human rights, that the world has ever witnessed. Thus it will be seen that both theoretically and historically the abundance or scarcity of money affects prices and the welfare of the masses. Gold being naw the only general standard of value or money in the leading countries of Europe and here, it becomes important to ascertain the facts as to the sufficiency of its supply, and the causes which have led to its appreciation (increase in purchasing power) in recent years. The following table, prepared by Dr. Soetbeer, and adopted by the Koyal Commission, shows the average annual production of gold in the world in five-year periods, from 1841 to 1885, inclusive. Period. Weight. 1841-1850.................................................................... 1851-1855.................................................................... 1856-1860............................................................ ....... 1861-1865.................................................................... 1866-1870.................................................................... UB71-1875.................................................................. 3876-1880.................................................................... 1881-1885.................................................................... KUograms. 54,750 199,388 201,750 185,057 195,026 173,004 172,414 140,137 Value. $36,392,831.40 132,513,264.80 134,083,050.00 122,988,882.20 129,614,279.60 116.677.598.40 114.586.244.40 99,116,450.20 For the subsequent years I give the figures prepared by the United States Treasury Department, as follows: Tears. W eight Value. Kilograms. IBS . . . .................. ......................... ........................... 188* ...... 153,070 156,156 149,838 103,779, C00 99,850,877 This shows that the production of gold is continually decreasing. Its consumption in the arts is increasing. Dr. Soetbeer calculated that it exceeded $60,000,000 in 1885. Thfi Director of the United States Mint, commenting on this subject in his annual report for 1888, page54, says: The total consumption of the precious metals in the industrial arts, according to the statements tarnished tho Dnreau, has been very much larger during the put year than in preceding years, both in gold and silver. The increase has men larger both in oars famished by the Government institutions and in bars furnished by private refineries, but especially large in the value of silver ban for industrial nse famished by private refineries in the United States. The aggregate employment in the precious metals in the arts daring the calen dar year of 1888 may be placed at $16,500,000 gold and $8,100,000 silver (coinage value), against estimated employment for tho calendar year 1887 of $14,600,COO gold, anC$5*k0,0Q0 silver. Add to this the phenomenal increase in the population, production, and commerce oTthe civilized nations of the world, it is not tobe won dared at that gold has increased in value and purchasing power. This would have been the tendency of both metals, had silver been permit ted to remain money and to help supply this greater demand, The 3 production of both in the last fifteen years has not kept pace with tho growth of population and increase in business. But not, satisfied with this natural advantage, tho creditor classes of Europe and of this country conspired to enhance tho \-alne of their bonds and se curities by a system of class legislation which has no parallel in the annals of history. Silver and gold had always been money, each dividing with the other the burden of measuring tho values and carrying on the busi ness of the civilized world, at tho ratio in Europe of 15* of silver to 1 of gold, and here of 10 to 1. In quantity there was about §31) of silver to $31 of gold (in 1871) If silver could be dethroned the creditor classes, and those having fixed incomes, would reap the ben efit of the increased value of gold. England, the great creditor, actuated by her greed, advocated demonetization of silver. Ger many, flashed with pride and with the thousands of millions of gold wrung fiom France, listened to the siren, made gold her solo stand ard of value, commenced to call in aud sell her silver, and finally demonetized it in 1873, 3,552,000 kilograms of German silver worth about $42 Per kilogram, having been robbed of its prerogative was thrown *pon the market as a commodity. Its gold price commenced to fall. A hue and cry against silver was inaugurated. In this country it was taken up by the organs of the bondholders. By means of a pretended codification of our coinage law’s the au thority fbr coining the silver dollar was repealed. Congress was captured by stealth, and President Grant is said to have stated that his signature to the act was obtained by misrepresentation. This happened in 1873. The following year France, Belgium, Italy, aud Switserlsnd limited their coinage of silver, and in 1878 closed their mints to that metal. Like action was taken b^ the Scandinavian countries in 1876. A scramble for gold ensued in which every ex pedient to obtain and to keep it was resorted to. The German Gov ernment banks made loans for nominal rates of interest conditioned on their repayment in foreign gold. The reign of Mammon had been inaugurated.. Gold rose in price from day to day, and all other commodities, when measured by it, fell. In March, 1879, Mr. Disraeli, then Lord Beaconsfield, said: All this time the produfee of the gold minoa of Australia and California has been regnltrly diminishing, and the consequence is that, while there great alter ations on the continent in favor of a gold currency have been made, notwithstand ing that increase of population which alone requires a considerable increase of currency to carry on its transactions, the amount of the currency itself is yearly diminishing until a state of affairs ban been brought about .b.v gold production exactly the reverse of that which it produced at. first. Gold is every day appreci ating in value, and as it appreciates the lower become prices. This was true in 1879, and is a terrible reality to-day. Does any one doubt the effect on priccs of these monetary changes by the prin cipal nations of the world ? While the burden has fallen the most heavily on the farmer, other classes have suffered as well. All val ues have shrunk nearly one-third, except debt and taxes. By refer ence to the table it will be seen that the wheat crop of 1874 was worth $441,398,655.60; that of last year, though.,a third largeT, was only worth $440,031,330. The national debt on July 1,1874, ac cording to the report of the Secretary of the Treasury (less the cash in the TMasuiy) was $2,143,088,241.16. Since that time and up to July 1, 1688, we had paid some fifteen hundred million dollars in principalaad interest, leaving the balance tbeft due of $1,087,930, 703.87. hi 1874 it would have taken 1,603,454,403 bushels of wheat to pay tho debt, and in 1888, 1,212,854,772. Stocks i>f merchandise have shrunk without being sold. A stock carried oier a season has suffered more from a fall in prices than from mot^s or shelf-wear. Mr. WALKER, of Massachusetts. With us they do not do that. Mr. IJfFD. Ah, they have to do it in the West sometimes, because the peopfc are too “ hard up” to buy. The latter could be guarded against; the former came by opera tion of lajr* What inducements are there for opening new farms, bnildingr uew mills or factories, or for undertaking any kind of en terprises with a market continually falling before you t The pros pects are that prices and profits will shrink and the burden of bor rowed capital become greater from day to day. Why erect a building or make improvements this year when you are morally certain that labor andlmaterial will he cheaper next f This fact explains to my mind the apparent anomaly that lower rates of interest are no in dication of an abundance of money. Interest is lower now on the whole than it has been for years. The bankers will tell yon that money is abundant—so it is in their vaults. Scarcity of money causes falling prices. This, again, discourages enterprisctand lessens the demand for capital. What money there is goes into the vaults, is hoarded, or seeks safe and long-time invest ments at such rates as can be obtained. From this it would seem that even in this case “ sin works its own destruction.” For I doubt very much whether the capitalists and money-lenders will, in the long run, profit by the general shrinkage of values and stagnation in enterprise, which they nave brought about. But while they may suffer lossbn, the producers are destroyed. The man who has $100,000 and loses half is still wealthy. But the man with $1,000 who sus tains a loqsef $50Q has not a competency left—hardly enough for a start. If the views I have expiessed are sound, the remedy suggests itself; Restoresilver to its former position. As to the means by which 4 CONGRESSIONAL RECORD. this may be accomplished we mjay differ. But if we keep this object in view we can agree on details. The great body of the American people demands the restoration of silver to the position of a money metal by virtue of its own precious character. It is our duty to comply with this demand. ^ It has been said here that this sentiment is prompted by dishonest motives. But even President Cleveland, in waging war on the sil ver dollar, did not go as far as that. He said: The bo -called debtor class, for whose benefit the compulsory coinage of silver is insisted upon, are not dishonest because they are in debt; and they.should not be suspected of a desire to jeopardize the financial safety of the country in order that they may cancel their present debts by paying the same in depreciated silver dollars. Ho evidently preferred to charge it to their ignorance. So does the Pioneer Press, the leading daily of oar State and of t|e North west, and one of the-ablest advocates of the single gold standard. At the recent convention held by the Farmers' Alfiance of our State that body adopted a resolution in favor of the free coinage of silver. On the following day that paper said editorially: The alliance platform makes some other mistakes, mostly where It endorses resolutions that were introduced by somebody with a hobby to ride, touching on questions which the members have not been able to study carefully. Such, for example, is the resolution approving the free coinage of silver. Thety is nobody who would suffer from this as severely as the farmer. It is the laboring man who is compelled to take the dishonest dollar at fall value, and to part with it for loss. The wages of labor are the last to feel the stimulus of a poor currency, and the first to suffer from a reaction. It is not singular that farmers should he led astray on a subject like this, which pnzzles many men who have made it thl subject of lou£ investigation. They are chargeable only with the impropriety of taking into their platform a resolution of whose effects they cannot have a clear aid thorough comprehension. Mr. GEAR. That is a free-trade paper. Mr. LIND. Yes; it is rather inclined to be English in years.” It is no argument to say that the people do not understand this question. They do. Many of our constituents have mote time to read and stndy than we have, and they can think and reason just as well. The judgment of the popular mind, like a woman's intuition, is usually right, whether it is the result of the most approved method of analytical inquiry or not. No one will dispute that the passage of the Bland act was not favored by the ft creditor class/ On the contrary, it was in response to the demand of the people. All sorts of dire consequences were predicted to follow its enactment. The silver dollar, it was charged, would be the ruination of our people, of our honor, and of our credit. The Pioneer Press made a positive prediction that it would depreciate, and that gold would command a premium as soon as we had coined enongh silver dollars to equal the amount of our annual receipts from customs dues. In 1864 more silver dollars had been coined than the customs receipt* for that year. Now, oar stock of silver is double the amount of our annual receipts from customs, and still the silver dollar is just as g«od money as tho dollar in gold. In his annual message to Congress in December, 1885, President Cleveland said: That disaster lias not already overtaken ns furnishes no proof that danger docs not wait upon a continuation of the present silver coinage. We have been saved by the most careful management and unnsnal expedients, by a com bination of fortunate conditions, and by a confident expectation that the course of the Government in regard to silver coinage would be speedily changed by the action of Congress. Since then over two hundred millions of silver dollars have been coined, and ‘‘ disaster has not overtaken us.” Are we not justified in asking which proved the greater, the wisdom of the peddle or the wisdom of the wise ? It was predicted that tho silver dollat, of which we have now coined over three hundred and fifty million, would drive out gold. Has it done sol On this point I will jpabmit the following table, furnished by the Treasury Department: \ Value of (jold coin and 'bullion imported into and exported [from the United States, from 1873 to 1889, inclusive ; also annual excess of tin* ports or of experts. , Exports. Year. Domestic. Foreign. $384,677 3873.-. $44,472,038 1874..* 32,645,486 1,396,934 1875... 61,543,545 5,437,432 1876--. 29,431,757 1,745,293 1877... 22,359,101 4,231,273 6,632,570 2,571,885 1878... 4,145,085 1870... 442,529 1880... 1,775,039 1,863,986 738,825 IF81... 1,826,307 1882... 31,403,625 1,184,255 8,92<), 909 2,679,979 1883... 5,787,753 1884... 33,294,204 1885... 2,741,559 5,736,333 1886... 32,766,066 10,186,125 5,705,904 3,995,883 1887... 12,560,084 5,816,150 Total ex ports. $44,856,715 34,042,420 66,960,977 31,177,050 26, 590,374 9,204,455 4,587,614 2,565,132 32,587,880 11,600,888 41,081,957 8,477,892 42,952,191 9,701,187 18,376,234 59,952,285 Imports. $8,682,447 19,503,137 13,696,793 7,992,709 26,246,234 13,330,215 5,0*4,948 80,758,396 100,031,259 34,377,054 17,734,149 22,831,317 26,691,696 20,748,349 42,910,661 43,934,3X7 10,284,858 Excess of exports ov«r imports. $36,174,268 14,539,88* 53,284,184 23,184,341 344,146 18,350,64* 49,«i,‘ «*r JSxeess of imports over ecrports. $4,125,760 1,037,334 77,119,371 97,466,127 1,789,174 6,133,261 33,209,414 25,558! 083 In explanation of the excess of exports over imports of gold last year, the Secretary of the Treasury says in his annual report: This excess of exports over imports of gold occurred mainly in May and Juno last, amounting during those months to $30,000,000. This excess was largely due to the increase of foreign travel on the part of our people and the consequent in creased demand for foreign exchange. It will be remembered that it is said that more than one hundred thousand Americans visited Europe last year. Instead of driving gold out does it not rather seem as if this “ inferior,” “ depreciated ” sil ver dollar had actually attracted gold T The “ Bland act," requiring the purchase of $2,000,000 worth of silver monthly and its coinage into silver dollars, became a law on February 28, 1878. As to its ef fects on the volume of our currency I cite you to the table given by the Secretary of the Treasury in his last annual report, and his comments thereon, as follows: Comparison between March 1, 1878, and October 1, 1889. In circulation In circulation Decrease. March 1,1878. October 1,1889. Gold coin............- ....... Standard silver dollars Subsidiary silver........ Gold certificates... ... Silver certificates. . . . . . United States notes — Nationalbank notes---- $82,530,163 53,573,833 44,364,100 311,436,971 313,888,740 805,793,807 Increase. $293,417,552 $375,947,715 57,554,100 57,554,100 52,931,352 $642,481 **72*3ii*249 116,675,849 276,619,715 276,619,715 14,073,787 325,510,758 199,779, Oil 114,109,729 1,405,018,000 114, 752,210 713,976,403 599,224,193 From the above statement it will be seen that the— Total increase of circulation of all kinds has been ............................ $713,976,403 Total decrease................................................................................... 114,752,210 Net increase....................................- .................................................... 599,224,193 The net expansion since March 1,1878, has, therefore, been $599,224,193. The average net increase per month has been $4,342,204, $52,106,451 per annum. Tha total net increase has been a little over 74 per cent., while the increase in popula tion has been about 33 per cent. In .1878 the circulation was about $16.50 per cap ita, and in 1889 it was about $21.75 per capita. What would be our condition to-day if we had not received this in* crease in our circulating medium T Does any one doubt but what money would have been scarcer and more difficult to obtain than it is ? Would not prices have been still lower and debts more burden some ? The influence that this increase in money has exercised in sustaining prices can not even be estimated. Prices have on tha whole been better sustained here than in Europe. The downward pressure has come from there and the resistance from this side, since 1880. This is true even as to wheat. It has frequently been higher in New York than in Liverpool. Mr. C. A. Pillsbury recently offered to pay any one $20,000 who could ship wheat from Minnesota to England at a profit of 1$ cents per bushel. It is not unreasonable to suppose that if the Bland act had not been passed wheat would have been down to 40 cents per bashel in Minnesota to-day. My reasons for this supposition are twofold. First, the scarcity of circulating medium would have depressed the price not only of wheat but of all commodities. Second, if the Bland act had not passed, the gold price of silver would have fallen more than it has, and that would have tended to further lower the price of wheat. If the silver which we have coined had been thrown on the market as a commodity the gold price of the metal would probably have fallen to 30 pence per ounce, instead of about 43 as it stands now. The riee of wheat has followed the gold price of silver very closely, a* ^rffl-sbow farther on. But sot-only hnalHs “ dishonest.” depreciated silver dollar sustained prices to a great extent, but Tb^Hive it has been the main cause in drawing thegold which has come to us as shown by the table already given. While it is true that(*times have been rather dull here,” they have been infinitely better than in Europe since 1883. Agriculture has been depressed here, but in England and in other parts of Europe it has bee®, and is, in despair. So m the industries. Hence, as compared to the conditions in E arope, we have prospered* Beth capital and labor have had better returns here, and botn have come. The greater the prosperity the greater the profits. The gold of Europe has come here to be employed, to share in the greater profits guarantied by our greater prosperity. I have thus far spoken of the change in the relative value of the two metals as an appreciation or rise m the value of gold. I believe this to be correct. Ordinarily we speak of silver as having depre ciated or fallen. -We have been led into this habit by the gold ad vocates, who neglect no opportunity to speak of silver as depreciated and the silver dollar as “ dishonest.” Neither is true. Comparing the two metals only, each with the other, simply shows a greater difference between them than formerly. Of thin difference it is just as fair to say that gold has appreciated as it is to say that silver has fallen. To ascertain the truth let us compare silver to the index numbers given above. The Secretary of the Treasury gives the fol- f CONGRESSIONAL RECORD lowing table of the value of silver since 1873, in his annual report: I have added the Economist’s index number. Averageprice of silver in London eachfiscal year, 1873-1889 and value of an ounce of fine silver at par of exchange, with decline expressed in per centages in each year since 1873. Tear. Price in London. a fine ounce. Value of Decline from 1873. Pence. Dollars. Per cent. 59.2500 58.3125 56.8750 62.7500 54.8125 54.3107 50.8125 52.4375' 51.9375 51.8125 51.0230 50.7910 49.8430 47.0380 44.8430 43.6750 42.4990 1873................................ 1874................................ 1875................................ 1876................................ 1877................................ 1878................................ 1879................................ 1880................................ 1881................................ 1882............................... 1883................................ 1884..?.................... .. 1885................................ 1886................................ 1887................................ 1888................................ 1889................................ 1.29883 1.27827 1.24676 1.15634 1.20156 1.19050 1.11387 1.14954 1.13852 1.13623 1.11826 1.11339 1.09262 1.03112 .98301 .95741 .93163 Economist's index number. 1.6 4. 11. 7.5 8.3 14.2 11.5 12.3 12.5 13.9 14.3 15.9 20.6 24.3 26.3 28.3 134 131 126 123 124 115 100 115 108 111 107 100 95 92 94 101 From this it will be seen that silver has not only maintained its relative value as compared to commodities, bnt it has actually appreciated. In other words, an ounce of silver will buy more of the necessaries of life, more of any kind of property to-day, than it would in 1873. And the silver dollar, instead of being dishonest, will pay a debt, buy as many things, and carries as many cents as the dollar in gold. The only trouble that most of us ever have with it “ is the getting of it.” But the contraction of the world’s money and the consequent fall of prices is not the only evil resulting from the attempted outlawry of ■silver. The farmers of Minnesota and of the Northwest have suffered an additional injury by reason of the advantage which it has afforded the wheat-growers of India to export their product to Europe. India, as is well known, is a silver nation. Her silver rupee is the unit of value and the legal-tender coin for all purposes. Prior to 1873 it had always been worth 2 shillings (English) or $0.48. With the demonetization of silver its gold price commenced to fall and has continued downward, as is shown in column 1 of the table which fol lows. Column 2 shows the price of wheat per bushel in rupees at Calcutta for the same period. Column 3 shows the same rupee price per bushel turned into our money on the cold basis. The data for these tables are found on pages 93 and 296 oi the twenty-second num ber of Her Majesty’s Statistical Abstract relating to British India, in the Library of Congress. t Price of Price of rupeein wheatjper shillings bushel in and pence. rupees. 5 Fall in silver price, 8 per cent.; in gold price 21$ per cent. The Indian Government statistics above referred to indicate a gen eral fall in rupee values of from 8 to 12 per cent, during the period 1873-W. The resnlt is that while labor, lands, cost of living, and everything except, perhaps, taxes have been reduced in price to the Indian farmer since 1873-’87, his wheat in the money which he re ceives (the only money which he can use) has only fallen 8 per cent. But the minute it is aboard an English steamer, where we have to meet it in competition, it has fallen 214 Per cent. Such is England’s j ugglery in money matters. The above illustration is more than fair. On the oasis of the first and the last year only, a like computation will show a difference of 20 per cent. I have referred to this matter to demonstrate that in considering legislation on this subject, we must not only provide for an increase of the circulating medium at home, but it should pave the way for the universal acceptance of silver as money abroad. Silver restored will not only raise and maintain prices all over the world, but it will cut off the advantage which the Indian farmer now enjoys over our own in the export of wheat and cotton. There are three bills before the House: The Committee, or “ Windom bill,” Appendix A. The Republican House caucus bill. Appendix B. The Bland or Free Coinage bill, Appendix C. Of tfeese three propositions the first appears to me the most objec tionable. It proposes to repeal the existing law, which, to a limited extent at least, recognizes silver as a money metal and reduce it to the level of other commodities. It might, when administered by a Secretary of the Treasury in sympathy with the silver movement, be made useful in increasing the volume of our circulating medium by the adoption of such rules and regulations as would make it desirable for our bullion owners to deposit their product in the Treasury instead of selling it abroad. Bat in the absence of special inducements it does not seem likely to me that such deposits would be made as it is usually more cum bersome to deal with the Government than with private individuals. Under a Secretary not in sympathy with the law it is very certain that ftw if any deposits would be made; nor does it seem probable that this flan for warehousing silver would raise the gold price of the metal in the least, and this is in fact the most serious objection to it As to the free coinage proposition, I am free to say that person ally I believe it not only the best, but the quickest way of settling the whole question. We produce half of the world’s silver. We are the richest and greatest nation on earth. France, by keeping her mints open to both metals at a fixed ratio, maintained their parity undisturbed for over a century. We could do the same. The talk about our mint being flooded by the silver of Europe is ab surd. In his last report, Secretary Windom says: There is in feet no known accumulation of silver bullion anywhere in tlio world. Germany long since disposed of her stock of melted silver coins, partly by sale, partly by roeoinage into her own new subsidiary coins, and partly by nse in coining for Egypt. Only recently it became necessary to purchase silver for the Egyptian coinage executed at the mint at Berlin* Price of wheat per bushel in dollars. To suppose that the European Governments would melt down their silver subsidiary coin which is now circulating at par with gold to sell it here aa bullion is equally absurd. But there are sonio ob jection* to unlimited free coinage at this time. Silver is now worth less than gold. If we should pass Mr. B l a n d ’ s bill we would give 1 10.754 2.55 $1.16 every btllion owner a bonus of nearly 30 per cent. I prefer to give 1 10.851 3874....................................................................... 2.36 1.05 this to we Government. Beside^ it would be unfair to deny that 1 10.156 1.82 .81 many conservative citizens of good judgment, and who are not prej 1 9.625 1.72 .74 1 8.508 2.22 .91 udiced % tljeir interests, sincerely fear that a free coinage law would 1 8.791 2.62 1.09 be disastrous. I feel confident to the contrary. At the same time I 1 7.794 2.69 1.06 believe It better prudence to yield something even to prejudice, 1 7.961 2.15 .86 when you can serve the people at wcH mid effiect your object almost . 1.92 .76 1 7.956 1 7.895 2113 .84 as spemjSy by adopting a measure equally efficacious but less objec2.06 1 7.525 .80 tionable.to all classes. Public confidence and approval is the main1 7.536 1.84 .72 etayofall legislation, especially of a financial character. Such a 1 7.308 1.88* .72 measureis the Republican House caucus bill. It provides for the I 6.254 1.92 .70 1 5.441 2.09 .72 monthl^ purohase by the Secretary of the Treasury of 4,500,000 dollars? worth of fine silver at the market price and for the issuance ofTreasury notes in payment, This will utilize our entire silver prod By examining these tables it will be seen that the average price uct whejt we add to it the demand for mechanical uses and the arts. per bushel of wheat at Calcutta, in rupees, for the five years 1873-77, The sOrer product of our mines and smelters for last year is stated is 2.13| rupees, or turned into our money on the gold basis 93f cents. in the following communication from the Director of the Mint: In the five years, 1883-’87, the average rnpee price is 1.96; turned Treasury Department, April 26,1890. into our money 73£, as follows: Joiw Lap: Tear. Cost in Calcutta, 100 bushels of wheat— From odrtwn mines 50,000.000 fine ounces: from lead ores imported 7,000,000 otmoes; tom silver bars imported 5,833,000 fine ounces. Total from onr mines, smelters* refineries 62,833,000 fine ounces. S . O. LEECH, In rupees. In dollars. a T h febf^Jf it becomes a law, will certainly increase our circulate Tears. 1873-T7 ................................................................ ...................... 188&-'87....................................................................... *............. Director Mint. 213.40 196.00 103.40 m ao * can never be called 41dishonest” or u depreciated.” For everyone -the Government has received and holds $1 worth of bulHimm i rttairtit ready and is pledged to redeem it in coin. The ex* 6 CONGRESSIONAL RECORD. pense of coining the bullion will bo saved. Tlie only feature of the bill which does not meet my full approval is the proviso to the second section which permits the withdrawal of bullion. This power might, with the connivance of the Secretary, be used for improper purposes. I shall ask to have the bill amended in this respect, but if I fail I know it will be done in the Senate. There is another feature to which I wish to call attention at this point. I believe therf is an actual advantage in issuing coin certificates and keeping the bullion in the Treasury, rather than in coining the silver dollar. If the ob ject is to increase the circulating medium, we attain that by Issuing the notes and leaving the bullion in the Treasury. If we coin the silver into dollars, we have no reason to doubt that, if there should be a special demand for silver in India or elsewhere in the East, those dollars will be exported, probably in exchange for commodities; and while I do not regret the loss of the dollars as bullion, 1 do re gret the loss of them as money. On the other hand, if the bullion is kept in the Treasury, it will not bo carried away, the volume of our currency will not be decreased, but will remain more stable abd per manent. That this bill will raise the price of silver to par, at the old ratio, is to my mind a matter of certainty. I predict that it will take place within two years after its passage. The world’s production of silver for 1888 was 110,000,000 ounces, according to the Treasury's estimate. The output for the Current year will probably exceed it by from 5,000,000 to 10,000,000. Of this 60,000,000 ounces were and will be required for the coinage of Asia and Mexico and the subsidiary coinage of Europe, according to the report of the Secretary of the Treasury, and 20,000,000 more for con sumption in the industrial arts. With a demand in the United States for some 60,000,000 ounces for coinage and the arts, ijb is ap parent that there will be no surplus product to weigh down the price. Regarded purely in the light of a commodity it i b evident that its scarcity alone for the purposes of commerce will enhance its value. But the greatest advantage to be derived from the passage of this bill, so for as advanciug the price of the metal is concerned, is that we publish to the world that we propose to make our silver money. France, whose people and statesmen have always appreciated the value and necessity of a large volume of money to insure national prosperity and thrift, has been restive under her adverse silver leg islation. She has stood ready and willing at all times to open her mints to free coinage, on the basis of an international agreement. This will inspire her and the other Latin states to renewed endeavors in that behalf, which will be crowned by success. There is another feature bearing on the question of the value of the precious metals that we should not ignore. That is, that their nniversal use for money purposes constitutes the larger share of their value. It has been said here, and it is a prevailing notion, that gold de rives its value from its intrinsic worth and precious character. This is true, but only partially true. Suppose that the commercial na tions of the world should by concert of action demonetize gold to morrow and make silver the universal unit of value and legal tender, does any one doubt but what the tables would be turned and silver go up and gold go down? Our greenbacks were legal'tender for pri vate debts. If they had been made receivable for customs duties does any one suppose that gold would have commanded the premium it did? Both silver and gold have an intrinsic value, but their relative value depends largely, and I might say wholly, on custom and stat ute law. The Japaueee are an intelligent people, possessed of a keen appreciation of the art and ornamental value of the precious metals. I have read that when that island was first visited by Europeans the native gold and silver coin passed current at the ratio of 1 of gold to 5 of silver. The first traders made considerable money by exchanging their silver for gold at that rate. The Japs soon found themselves compelled to change TfieirTutlo, and did so. - When it is thoroughly understood what an important factor the “ money use” is in making up the sum total of the value of the precious metals, it will be appreciated to what an extent the price of silver will be augmented by adding this “ use” or fauction to one-quarter of the world’s production of silver, as we do by this bill. 1 now beg the pardon or the committee for occupying so much time. But I feel more interest in this subject than in any other that is pending before ns. Its solution as promised in this bill will en able the debt-ridden to work out, will render work on our farms more remunerative, employment in the shop and factory more steady, and iuspire industry and enterprise with renewed hope. “ Windom Bill” —Appendix “A.” Be it enacted, etc., That any owner of silver bullion, the product of the mines of the United States, or of ores smelted or refined in the United fPtritnr. May de posit the same at any coinage mint, or at any assay office in the United States that the Secretary of the Treasury may designate, and receive fh m fo r Tfcea* ury notes hereinafter provided for, equal at tbe date of depoeit to the net value of such silver, at the market price, such price to4>e determined by the Secretary of the Treasury, under rules and regulations prescribed, bused upon the- price current in the leading silver markets of the world; but no deposit consisting in whole or in part of silver bullion or foreign silver coins imported into this coun try, or bars resulting from melted or refined foreign silver coins, shall bo re ceived under the provisions of this act. Sec. 2. That the Secretary of the Trc;is;iry shall cause to be prepared Treas ury notes in such amounts as may be required for the purpose of the above sec tion, and in such form and denominations as he may prescribe: Provided, That no note shall be of a denomination less that SI nor more than 81,000. Sec. 3. That the notes issued under this act shall be receivable for customs, taxes, and all public dues, and when received into tlie Treasury may be re issued, and such notes, when held by any national banking association, shall be counted as part of its lawful reserve. Sec. 4. That the notes issued under the provisions of this act shall be redeemed upon demand at the Treasury of the United States or at the office of an assist ant treasury of the United States by the issu^t of a certificate of deposit for the sum of the notes so presented, payable at one of the mints of the United States, in an amount of silver bullion equal in value, on the date of said certificate, to the number of dollars stated therein, at the market price of silver, to be deter mined as provided in section 1; >r such notes may be redeemed in gold coin at the option of the Government: Provided, That upon demand of the holder such notes shall be redeemed in silver dollars. Sec. 5. That when the market price of silver, as determined by the Secretary of the Treasury, shall exceed SI for 371.25 grains of pure silver, it shall be the duty of the Secretary of the Treasury to refuse to rcccive deposits of silver bull ion for the purposes of this act. Sec. 6. That it shall be lawful for tho Secretary of the Treasury, with the ap proval of the President of the United States, to suspend, temporarily, the re ceipt of silver bullion for Treasury notes at any time when he is satisfied that through combinations or speculative manipulation of the market the price of silver is arbitrary, nominal, or fictitious. Sec. 7. That the silver bullion deposited under this act, represented by Treas ury notes which have been redeemed in gold coin or in silver dollars, may be coined into standard silver dollars or any other denomination of silver coin now authorized by law, for the purpose of replacing the coin used in the redemption of the notes. Sec. 8. That so much of the act of February 28,1878, entitled “An act to au thorize the coinage of the standard silver dollar and to restore its legal-tender character,” as requires the monthly purchase and coinage into silver dollars of not less th$n $2,000,000nor more than $1,000,000 worth of silver bullion, is hereby repealed. S e c . 9. That any gain or se ig n io r a g e arising from the coinage which may be executed under the provisions of this act shall be accounted for and paid into the Treasury as provided by existing law. Sec. 10. That silver bullion received under the provisions of this act shall bo subject to the requirements of existing law, and the regulations of the mint service governing the methods of receipt, determining the amount of pure sil ver contained, and the amount of charges or deductions, if any, to be made. Sec. 11. That nothing in this act shall be construed to prevent the purchase, from time to time, as may be required, of silver bullion for the subsidiary silver coinage. Sec. 12. That a sum sufficient to carry out the provisions of this act is hereby appropriated, out of any money in tho Treasury not otherwise appropriated. Sec. 13. That all acts and parts of acts inconsistent with the provisions of this aet are hereby repealed. Sec. 14. That this act shall take effect thirty days from and after it* passage. “ The Republican HouseBill ” —Appendix “ B.” Strike out all after the enacting clause and'insert the following: “ That the Secretary of the Treasury is hereby directed to purchase from time to time silver bullion to the aggregate amount of $4,500,000worth in each month, at the market price thereof, not exceeding $1for 371.25 grains of pure silver, and to issue in payment for such purchases of silver bullion Treasury notes of tho United States to be prepared by the Secretary of the Treasury, in su:h form and of such denominations* not less than $1 nor more SI,000, as he may prescribe, and a sum sufficient to carry into effect the provisions of this act is hereby ap propriated out of any money in the Treasury not otherwise appropriated: MFr<h vided. That if tbe net amount of silver bullion received in accordance here* with and not paid out as hereinafter provided, shall be less than 92,000,000 worth in any one month, it shall then be the duty of t're Secretary of the Treas ury to purchase, during the succeeding month, at the market price, not ex ceeding however $1 for 371.25 grains of pure silver, an amount of silver bullion equal to such deficiency, and to issue in payment therefor Treasury notes hereinaftesprovided for.’1 **Skc. 2. That the Treasury notes issued in accordance with the provisions of this act shall be redeemable on demand, in coin, at the Treasury of the United SmfiKUrat the office-of-tw asaiatant trpnwnrpr n f flip United States, and when so redeemed may be reissued; but no greater or less amount ot such notes s&an be outstanding at any time than the cost of the silver bullion then held in the Treasury purchased by'such notes; and such Treasury notes shall be a legal tender in payment of all debts, public and private, and shall be receivable for the Treasury notes herein provided for the Secretary of the Treasury may, at his discretion and under such regulations as he shall prescribe, exchange for such notes an amount of silver bullion which shall be equal in value at the mar ket price thereof on the day of exchange to the amount of such notes presented. *1Sec. 3. That the Secretary of the Treasury shall coin such portionof the silver bullion purchased under the provisions of this act as may be necessary to pro vide for the redemption of the Treasury notes herein provided for, and any gain or seigniorage arising from such coinage shall be accounted for and paid into the Treasury. 44Sec. 4. That the silver bullion purchased under the provisions of this act shall be subject to the requirements of existing law and the regulations of the mint service governing the methods of determining the amount of pure silver con tained, and the amount of charges or deductions, if any, to be made. “ Sec. 5. That so much of the act of February 28, 1878, entitled 1An act to au thorize the coinage of the standard silver dollar and to restore its legal-tender character/ as requires the monthly purchase and coinage of the same into silver dollars of not less than £2,000,000 nor more than $4,000,000 worth of silver bull ion, is*hereby repealed. **Sec. 6. That whenever the market price of silver, as determined in pursuance ot section 1 of this act, is Si for 371.25 grains of pure silver, it shall be lawful for the owner of any silver bullion to deposit the same at any coinage mint of the CONGRESSIONAL RECORD. United States, to bo formed into standard silver dollars for his benefit, as pro vided in the act of January 18,1837. .................. “ Sec. 7. That upon the passage of this act the balances standing with the Treas urer of the United States to the respective credits of the national banks for deosits made to redeem the circulating notes of such banks, and all deposits lereafter received for like purpose, shall be covered into the Treasury as a miscellaneous receipt, and the Treasurer of the United States shall redeem from the general cash in the Treasury the circulating notes of said banks which may comc into his possession subject to redemption; and upon the certificate of the Comptroller of the Currency that such notes have been received by him and that they have been destroyed and that no new notes will be issued in their place, reimbursement of their amount shall be made to the Treasurer, under such regulations an the Secretary of the Treasury may prescribe, from an ap propriation hereby created, to be known as4National-bank notes; redemption account;’ but the provisions of this act shall not apply to the deposits received under section 3 of the act of June 20, 1874, requiring every national bank to keep in lawful money with the Treasurer of the United States a sum equal to 5 per cent, of its circulation, to be held and used for the redemption of its circu lating notes; and the balance remaining of the deposits so covered shall, at the close of each month, be reported on the monthly public-debt statement as debt of the United States bearing no interest. “ Sec. 8. That this act shall take effect thirty days from and after its passage.” 8 7 19The Bland bill”—Appendix “ C ” A bill for the free coinage of silver, and for other purposes. Be it enacted by the Senate and Souse of Representatives of the United States of America in Congress assembled, That from and after tho passage of this act all holders of silver bullion of the value of $50 or more, standard fineness, shall be entitled to have the same coined into standard silver dollars of 412J grains troy of standard silver to the dollar, upon like terms and conditions as gold is nowcoinedfor private holders; that the standard silver dollar heretofore coined and herein provided for shall be the unit of account and standard of value in like manner as now provided for the gold dollar, and shall be a legal tender for all debts, public and private, cxcept where otherwise stipulated. S e c . 2. That so much of the provisions of the act of February 2S, 1878, en titled “An act to authorize the coinage of the standard silver dollar and restore its legal-tender character,** as provides for issuing certificates on the deposit of silver dollars shall be applicable to the coin herein named; and so much of the said act of February 28,1878, as provides for the purchase of silver bullion to be coined monthly into standard silver dollars be, and the same is hereby, re* pealed. S e c . 3. That the Secretary of the Treasury is hereby authorized to adopt such rules and regulations as may be necessary to enforce the provisions of this o
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