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S IL V E R CO IN A G E WITHOUT BU LLIO N RED E M PTIO N . SPEECH OF HON. THOMAS H. CARTER, OF MONTANA, IN THB HOUSE OF REPRESENTATIVES, F r id a y , J une , WASHINGTON. 1890. . 6 1890 SPEECH OF H O K T HOMA S H. CARTER. The House having under consideration the bill (H. R. 5381) authorizing the issue of Treasury notes on deposits of silver bullion— Mr. CARTER said: Mr. S p e a k e r : From remote antiquity until the year 1873 gold and silver were currently accepted as the money metals of the world. On fixed ratios they were legally recognized as measures of value and me diums of exchange. The common consent of mankind to so consecrate these metals to coinage first found expression in commercial usage, and that commercial usage was finally given supposed permanency in the form of statutory enactments by the legislative assemblies of the lead ing commercial nations of the world. Usage thus became bound up in law and dependent upon it for stability. The mints of Europe were, generally speaking, open for the unlim ited coinage of all the gold and silver product of the world on a fixed ratio of 15J silver to 1 of gold. For the century preceding 1873 the unit of coinage in the principal commercial nations rested on both metals, although silver was generally and properly accepted as the re liable standard, and gold was rated according to the discretion of each government, the general ratio, with slight variation, being 15J to 1. The existence of a fixed ratio tended in the most satisfactory manner to prevent undue shifting of the metals from one country to another. While the mints of all countries were open to the free coinage of both metals, no incentive existed to transfer bullion from one country to an other for coinage, as such transfer incurred expense without profit. To the changes and lack of uniformity in the ratio, therefore, was un doubtedly due, to a great extent, the disturbance which led to the unfortunate tendency toward the single standard, which was initiated 4 by Engand in 1816, and finally consummated by the demonetization of silver by this country in 1873. In 1786 our Government adopted the ratio of115J- of silver to 1 of gold. In 1792, the ratio was changed to 1 to 15 and in 1834 to 1 to 16. It is worthy of note that when the latter ratio was fixed by this coun try, all our silver was shipped abroad for coinage and thereafter the United States, although producing large quantities of silver, was prac tically unable to hold the metal in this country for coinage purposes, for the very good reason that it could be shipped abroad and coined in the mints of the Old World at a profit. France adopted the double standard in 1803, with a ratio of 15J to 1, and in 1865 the Latin Union was formed on that basis, ultimately em bracing France, Italy, Belgium, Switzerland, and Greece. While the mint of France was coining at the ratio of 15^ to 1, the mints of this country could not procure silver to coin at the ratio of 1 to 16. In the consideration of this question, we can not overlook the insur mountable fact that for the major portion of the passing century this slight variance between the coinage regulation of France and the Latin Union was sufficient in itself to draw the silver of the United States to the countries which had adopted the more friendly ratio. The adop tion of the single gold standard by England in 1816, although England was then as she is now one of the strongest of the commercial powers, did not disturb the ratio between the metals. While the mints on the Continent remained open to the coinage of silver, the ratio was maintained with unvarying steadiness. At the conclusion of the Franco-Prussian war in 1871, the action of Germany in adopting the gold standard for the first time disturbed the equilib rium, but it must be borne in mind that the action of Germany alone did not bring about this result. Apprehending heavy sales of silver by Germany in the process of its change to the single standard, the Latin Union and the United States suspended free coinage. This action cast upon gold the burden of all exchanges between the chief commercial nations of the earth, and the increased demand for that metal undoubtedly caused its undue appre ciation. There can be no reasonable doubt that silver would have ap preciated if that metal had been fixed as the single standard of value by the discarding of gold. CAB 5 The chief use to which silver had been pub for ages was coinage, and the demonetization of the metal, instantly depriving it of employment in that direction, caused the price as quoted in gold to decline. No one now pretends to say that this decline was not due to adverse legisla tion. Since then it has fluctuated in value, and its fluctuations have affected all international exchanges, particularly between those coun tries having the silver standard and those having the gold standard. The employment of gold for the performance of the commercial of fices in which both gold and silver had been previously employed gave to this metal a greatly increased importance, and the consequent in creased demand for it led to its abnormal appreciation ajid has caused a depreciation in the price of everp commodity measured by gold coin. This result is visible in every article of commerce, as likewise in the value of real estate, but the greatest injury has been inflicted upon manufacturing and agricultural communities. In the United States the effect upon the producing classes has been seriously injurious. The wheat crop of this country constitutes one of our most valuable export commodities, and in the foreign market our chief competitor in wheat is India. Now England controls India, and practically fur nishes her with circulating medium, and in return transports her vast wheat crop to the European market for sale. The circulating medium of India is a silver coin known as the rupee. A rupee in India will bu|r a certain quantity of wheat, and it is immaterial in that country what the original cost of the metal in the rupee actually was. When we demonetized silver it cost England 2s. to purchase the sil ver with which to make a rupee. At present the same amount of sil ver can be purchased at Is. 5d., and the rupee which results from this quantity of silver will purchase as much wheat in India to-day as in 1873. It is, therefore, clear that with the same quantity of gold Eng land can purchase an amount of silver whicl\, manufactured into rupees, will purchase a much larger quantity of wheat in India than could have been purchased indirectly by the same amount of gold in 1873. Since the wheat can be purchased cheaper, it can be transported and sold for less in the European market, while preserving the same profit on the transaction which formerly resulted. The increase in the price of silver as measured in gold would in consequence tend to increase the market price of wheat in Europe, and that increased market price CAB 6 would be a direct benefit to tlie vast body of American c itizens en gaged in wheat-raising. This furnishes but one illustration o f the many ways in which the appreciation in the value of gold, or, if you will so have it, the depre ciation in the value of silver, has injuriously affected the American in terests. Aside from this, we produce in this country about 45 per cent, o f the world’s annual silver product. Every consideration o f patriotism and sound statesmanship commands us to so direct our legislation as to re store this vast annual output of silver to its normal price in the world’s market. It can so be restored only by restoring the silver to the legit imate use to which it has been consecrated throughout the centuries that have passed. The advocates o / a single gold standard urge the increased output of silver as an argument in favor of their theory. Thirty years ago the same theorists were advocating, and with much more logic, the demon etization of gold because of the remarkable placer discoveries in Cali fornia and the Rocky Mountain Territories. Experience in the mining regions of this country from the first discovery of gold in California up to the present time very clearly demonstrates the fact that if either metal is to be discarded because of uncertainty in its production or the possibility of an undue increase'in quantity gold should be by all means discarded and silver retained. Gold has frequently been found in its pure state in enormous quan tities and at unexpected times and places, and what has occurred here tofore may occur hereafter. On the contrary, silver has been from its first discovery constant in production and regular in quantity. It has never been found in placer deposit, but always in rock iWmations, re quiring an expensive process for its extraction. While fabulous profits have resulted from the phenomenal discoveries of gold in placer de posits, the production of silver has not been attended on the average in any mine with more than normal returns on capital invested. A circumstance worthy of the gravest consideration in passing upon the utility of the two metals for a circulating medium is found in the fact that the production of gold is very largely dependent upon the pro duction of silver. But a fraction of the world’s annual production of gold is produced from ore containing gold free from silver or from gold CAR 7 as found in the placer deposits. A very considerable proportion o f the annual output of gold is secured from silver-bearing ores, and experi ence has demonstrated that the combination of profit in a mining en terprise on both the gold and silver contents in a given ore is often necessary to the successful mining and treatment o f the ore. It fol lows from this state of facts that such continued discrimination against silver as may tend to reduce its price and discourage its production would likewise materially decrease the world’ s annual supply of gold, thus tending to widen the breach already forced by legislation be tween the relative values of these two metals. , But the assumption that there has been an unhealthy increase o f silver production since 1860 is not sustained by the facts and figures. Institute a comparison between the percentage increase of population, interstate and international commerce, since 1860 with the increase of silver and it will be found that silver production has not actually kept pace with the increase of population, development, and trade, and as to gold, it will be found that while the world has been rapidly pro gressing in all directions and the demand for a measure o f value and a circulating medium has been constantly increasing, the product has been in no sense commensurate with the increased demand, but in this country, has actually decreased from $36,000,000 in 1873 to $33,175, 000 in 1888, and as to both gold and silver, it will be found th^t the volume is not any more disproportioned to the world’s business and population than in 1873. While the production of gold has thus been actually decreasing, our foreign commerce has greatly increased and our domestic productions have more th^n doubled; for instance, between 1873 and 1889 the pro duction of corn increased 126 per cent.; wheat, 75 per cent.; rye, 88 per cent.; oats, 178 per cent.; barley, 99.36 per cent.; horses, 49 per cent.; mules, 73 per cent.; cattle, 87 per cent.; swine, 54 per cent. But it is useless to recapitulate; the fact is notorious that the produc tions of the country have increased phenomenally, whereas our stand ard of value and the medium of exchange has actually been decreasing. The production of silver, on the contrary, has in some measure, although not adequately, kept pace with the development of the country and the increase of trade. This is true notwithstanding the vast output of placer gold between C A Il 8 1850 and 1870, a period during which the increase of gold over silver far exceeded in quantity the corresponding and relative silver increase since the last-named year. As the record of the world’s production of gold and silver between 1850 and 1890 very clearly elucidates the manner in which a safe equi librium is preserved in commercial affairs through the bimetallic sys tem, I incorporate a statement showing the production for each year from 1851: Statement of the arrmwxlproduction of gold and silver in the world, from 1851 to 1888. inclusive. Year. 1851 1852 1853 1854 1855 1856 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 1883 1884 1885 1886 1887 1888 Silver. $67,600,000 132.750.000 155.450.000 127.450.000 135.075.000 147.600.000 133.275.000 124.650.000 124, 850,000 119.250.000 113.800.000 107.750.000 106, 950, 000 113.000.000 ,. 120 200.000 121 100,000 104.025.000 109.725.000 106.225.000 106.850.000 107.000.000 99.600.000 96.200.000 90.750.000 97.500.000 103.700.000 114.000.000 119.000.000 109.000.000 106,500, 000 103.000.000 . $40,000,000 40.600.000 40.600.000 40.600.000 10, 600,000 40.650.000 40.650.000 40.650.000 40.750.000 40.800.000 44.700.000 45.200.000 49.200.000 51.700.000 51.950.000 50.750.000 54.225.000 50.225.000 47.500.000 51.575.000 61.050.000 62.250.000 81.800.000 71.500.000 80.500.000 87, 600,000 81,000,000 95,000,000 96, ooo, ooa 96. 700.000 102,000,000 102 000.000 95.400.000 101.700.000 108.400.000 106,000,000 107.000.000 106.000.000 111, 800,000 115.300.000 105.500.000 118, 500,000 120, 600, 000 125, 500,000 142, 400,000 4,250,325,000 2,657,925,000 These figures when compared with commercial and census data show that the "supply of the precious metals has not been increasing of late ^ears disproportionate to the increase in population and business. CAB 9 Tlie supply of gold has actually decreased, while its use as the sole money metal o f the great commercial nations has been violently in creased. As a nation we can no longer expend our strength and im poverish ourselves in the effort to increase the trade o f India while running our Government counter to natural laws and the common in terest of the people-. We must return to the double standard. We must restore by legislation the equilibrium we destroyed by legisla tion. We must open our mints to the free and unlimited coinage of silver. This and this alone will bring about a restoration o f healthy finan cial conditions. This conclusion has been reached by statesmen and political economists, not only in this country but in England, France, and elsewhere. For ten years past the necessity has been apparent to many, and has been to a greater or less degree recognized by all, as in dicated by the repeated conferences and congresses that have assembled under authority o f the various commercial nations to consider the causes leading to the fall of prices and kindred subjects incidental to or directly connected with the question of the free coinage of silver. I think it may b£ truthfully said that the necessity for a universal re turn to the double standard has been practically conceded, the means o f accomplishing that end being the principal subject considered in the current literature touching the question. Many thoughtful and patriotic men believe that this country can not on its own account and independent of all other commercial na tions sustain itself on the bimetallic basis and open its mints to the free coinage of silver. In support of this theory it is suggested that large quantities of silver coin have been boxed up and are now ready for shipment from the various banks o f Europe to this country, to be coined at our mints. It is conceded, by those who advance this argu ment that no considerable quantities of silver bullion exist anywhere; hence we would be inundated with foreign coin if this theory be cor rect. As I have heretofore shown, all foreign coins contain less silver than the American silver coin; hence in the melting down of the for eign coin and transforming it into an American coin there would be a considerable loss. Jn addition to the loss which would thus be sustained, abrasion and short-weight coins would increase the disadvantage incident to the reCAR 10 coining at our mints. and insurance. Further still would be added the cost of freight These sundry charges would in my opinion be sufficient to deter holders of foreign coin from embarking in the losing transac tion which is apprehended. Further still it must be borne in mind that the daily business of all the people of Europe would not instantly cease on the occasion of the opening of the mints of the United States. On the contrary, the people would continue in their daily avocations in France, Germany, and England, all over the world for that matter, and in the transaction of their daily business they would require for daily use the identical coin which theorists apprehend would be shipped to the United States instanter to be transformed into Ameri can dollars. The opponents of free coinage, however, advance another argument, baged upon what they are pleased to consider practical experience. It is suggested that notwithstanding the coinage of $2,000,000 per month under the law of 1878, silver has continuously declined in price and that no assurance exists that it would not continue to decline, even though we should open our mints to its free coinage. This calls for the consideration o f certain facts relative to the world’s annual surplus of silver. On page 21 of the published report o f the Secretary of the Treasury for 1889 is found the following statement, showing the world’s annual production of silver at coining value and the various uses to which it is applied: Annual product (coining value)............................................................ $142,000,000 Disposition: Required by I n d ia ........................................................................... Coinage of full legal:tender silver by Austria and Japan (aver age) .................................................................................................. Required for subsidiary coinages of Europe and South America and colonial coinages.................................................................... Amount anuually exported to China, Asia, and Africa (other than used in Indian coinage)....................................................... Annual coinage o f Mexican dollars, not m elted.......................... Amount used in the arts and manufactures (estimate)............... Surplus product.................................................................................. 10,000,000 5,000,000 15,000,000 51,000,000 Total........................................................................................... 142,000,000 35,000,000 10,000,000 16,000,000 From the above it will be seen that the annual .surplus product o f silver, which would probably be deposited at the mints o f the United States, approxi mates $51,000,000 (coining) value, corresponding to 39,445,312 fine ounces, worth, at the present market price o f silver (96 cents), 137,867,500. CAR 11 On the same page the Secretary states that the world’s consumption o f silver in the arts amounts to twenty-one millions per annum, whereas in the statement above set forth it will be observed that the amount used in the arts and manufactures is estimated at fifteen millions, the additional amount used in the arts being accounted for by the Secre tary as taken from old coins melted down and old material reused. Thus it is apparent that in order to create a surplus of fiffcy-one millions annually of silver it is necessary to melt down old silver coins and can dlesticks to the extent of $6,000,000 coinage value each and every year. But assuming the fifty-one millions of surplus to be correct, the ques tion arises, what would be the effect on the market if a*demand should suddenly arise for fifty-two millions ? There would then be a shortage in the market of $1,000,000 annually instead of a surplus o f fifty-one millions, and I ask if it is not true that the law of supply and demand controls the market price when applied to silver as when applied to wheat? I ask this question even allowing for*the sake of argument that silver be treated as a commodity. We have been absorbing in the United States $24,000,000 o f this $51,000,000 annually, thus leaving net surplus of the world’s production each year of $27,000,000 in silver at coinage valuation. It is this unused surplus which the people of the United States act ually need for the convenient transaction of their business, and which the Government has refused to coin, that has continued to depreciate the price of silver in the market. The exact amount o f surplus o f a given article is immaterial in the matter of controlling the price; it is enough that a surplus exists. As long as the surplus remains the price will be depressed; the moment the surplus is absorbed and a de ficiency created, that moment the value of the article appreciates. It is further urged in opposition to an increase of silver coinage that the dollars coined under the law of 1878 are not accepted by the people. In support o f this statement we are referred to the vast accumulation of silver in the Treasury. This argument originates in either stupidity or dishonesty, and in support of this assertion I present the following statement: CAB fUn ited States Treasurer’s report for 1889, page 95.] Statement showing the amount of standard silver dollars coined, in the Treasury, and in circulation, and of silver certificates outstanding, from latest returns received at the end of each month from July, 1886. Standard silver dollars coined. Standard silver dollars in the Treasury. . Silver cer tificates in the Treas ury cash. Silver cer tificates in cir culation. Net standard silver dollars in Treasury after deducting silver certifi cates in circulation. 1886. July 31............................................................. August 31........................................................ September 30......................... ........................ October 30........................................................ November 30........................(.......................... December 31................................................... $235,043,286 238,573,286 241,281,286 244,079,386 246,903,386 249,623,647 $181,523,924 181,769,457 181,262,593 182,931,231 184,911,938 188,506,238 $27,728,858 25,571,492 22,555,990 17,562,302 14,137,285 7,338,432 $87,564,044 89,021,760 95,387,112 100,306,800 105, 519, 817 117,246,670 $93,959,880 92,747,697 85,875,481 82, 624, 431 79,392,121 71,259,568 $54,119,362 56,803,829 60,018,693 61,148,155 61,991,448 61,117,409 1887. January 3L....................................................... Februarv 28..................................................... March 31 ........................ ................... .............. April 30............................................................. May 31 ............................................................. June 30............................................................ July 31 ............................................................. August3l.s........................................................ September 30................................................... Ootober 31........................................................ November 30................................................... December 3 1 .................... .........................I.... 252,503,647 255,453,647 258,474,027 261,524,027 264,474,027 266, 990,117 267,440,117 270,250,117 273,390,157 276,816,157 280,144,157 283,140,357 193,963,783 198,112,760 201,672, 372 205,788, 822 209,052,567 211,483,970 211,528, 891 213,212,448 213,043,796 214,175,532 215,882,443 218,917,539 6,737,388 5,466,347 6,212,849 5,007,700 5,289,164 3,425,133 4,209,659 5,996,743 3,919,841 3,451,494 4,413,446 6,339,570 118,183,714 121,130,755 131,930,489 137,740,430 139,143,328 142,118,017 144,166,141 147, 876, 385 154,354,826 160,713,957 168,149,274 176,855,423 75,780,069 76,982,005 69,741,883 68,048,392 69,909, 239 69,365. 933 67,362,750 65,336,033 58, 688,970 53,461,575 47,733,169 42,062,116 58,539,864 57,340,887 56,801,655 55,735,205 55,421,460 55,506,147 55,911,226 57,037,669 60,346,361 62,640,625 64,261,714 64,222,818 Date. Standard silver d o l lars in circulation. 1 888. January 31 . February 29 March 31... April 30.......... May 31........... June 30.......... July 31............ August 31....... September 29.. October 31..... November 30... December 31.... January 31.... February 28... March 30....... April 29 ....... May 31.......... June 29.......... July 31.......... August 31..... September 30., October 31..... November 30.. December 31 .. January 31. February 28 March 31... 1889. 1890. 285.845.357 288.545.357 291.355.789 294.039.790 297.037.790 299.424.790 300.708.790 303.320.790 306.542.890 309.670.890 312.450.890 315,186,190 223,918,380 227,947,493 232,037,274 236,156,394 240,587,970 243,879,487 245,798,765 247,859,402 248,791,534 249, 979,440 251,975,505 254,406,869 14,930,517 21,166,469 19,370,425 18,316,109 20,458,423 29,104,396 23,361, 286 15,528,762 9,819,875 7, 404.624 8,834,4V5 3,958,567 179,321,053 184,452,659 191.526,445 194,426,932 196,645,405 200,3^7,376 203,680,679 209,658, 966 218', 561,601 229,783,152 237, 415,789 246,219,999 44,597,327 43,494,834 40.510,829 41,'729,462 43,942,565 43,492,111 42,118,086 38,200,436 30,229,933 20,196,288 14,559,716 8,186,870 61,926,977 60,597,864 59,318,515 57,883,396 56,449,820 55,545,303 54,910,025 55,461,388 57,751,356 59,691,450 60,475,385 60,779,321 318,186.190 320,946,490 323.776.515 326.974.515 330,188,540 333.422.650 334.602.650 337.502.650 340.357.650 343.428.001 346.798.001 349.802.001 259,811,329 263,514,586 267,286,176 271,326,743 275,484,223 279,084,683 280,382,395 282,583,864 282,983,550 283,539,521 286,101,364 588,535.500 4,717,113 5,717,898 4,760,236 3,451,830 6, 2a5,089 5,527, 301 5,651,271 6,141,570 3,878,052 2,328,373 2,419,174 2,252,966 245,337,438 246,628,953 251, 263,679 254,939,203 255,537,810 257,102, 445 259,557,125 268,580,626 276,619,715 277,319,944 276,794,386 282,949,073 14,473,891 16,885,633 16,022,497 16,387,540 19,946,413 21.982.238 20,825,270 14.003.238 6,363,835 6,219,577 9,306,978 5,586,427 58,374,861 57,431,904 56,490,339 55,647,772 54,704,317 54,337,967 54,220,255 54,918,786 57,374,100 59,888,480 60,696,637 61,266,501 352.536.001 355.948.001 359,884,266 293,229,364 297,575,621 302,036,610 3,254,118 4,063.377 3,407,891 281,331,771 284,176,262 290,605,562 11,897,593 13,399,359 U. 431,048 59,306,637 58,372,380 57,847,656 M 05 14 It will be observed that of the 359,884,228 standard silver dollars shown by the statement of March 31, 1890, every dollar is either in circulation or represented by a circulating silver certificate, except about eleven and one-half million dollars. It is instructive to compare this statement with the tables showing inclination o f gold coin and' bullion to accu mulate in the Treasury vaults, and to show the contrast I present the tabulated statement issued by the Treasurer, which is as follows: [United States Treasurer’ s report for 1889, page 93.] Statement showing amount of gold coin and bullion in the Treasury, and of gold certificates outstanding, from latest returns received at the end of each month. Date. Total gold in Treasury, coin and bullion. 1887. January 31................... $274, 140,468. 85 February 28................. 275, 088, 626. 45 March 31...................... 275, 985, 862.15 April 30......................... 275, 336,915.90 May 31 ........................ 277, 628.750.47 June 30........................ 278, 101,106. 26 July 30........... *............. 281, 296,417. 45 August 31.................... 282, 039,533. 67 September 30.............. 290, 702,629. 70 October 31................... 302, 544,605. 45 November 30.............. 302, 661,278. 68 December 31............... 305, 342,187,07 1888. January 31........... 307, 809,155.27 February 2 9 ................ 309, 567, 826.88 March 31 .................... 310, 772,202.63 April 30........................ 312. 801,287.15 May 31......................... 309, 882, 858. 81 June 3 0 ........................ 313, 753,616.89 326, 551,392. 34 July 31......................... August 31 ................... 331, 133,430. 44 September 2 9 .............. 332, 551,305.52 October 31 ................... 331, 688.233.11 November 30 .............. 328, 603.361.29 December 31............... 324, 773,666.56 1889. January 31................... 325, 641.856.12 February 28................ 326, 456,697. 81 March 30...................... 326, 700.938.96 April 29........................ 328, 203,900.80 May 31......................... 321, 297.376.96 June 29........................ 303, 504,319.58 July 31......................... 300, 759,572.98 August 3 i..„................ 304, 048.189.30 305, 871,772.02 September October 31 308, 509, 615.21 November 3 0 .............. 310, 979,791.06 313, 818.941.47 December 31. 1890. 316, 043,454.19 January 31..... 318, 593,752.14 February 28 ... 320, 225,794.87 March 31......... CAR Gold certificates in Treasury, cash, ! Gold cer I tificates I in circulaj tion. Net gold in Treasury, coin and bullion. 513,843,632 $105,665,107 24, 256, 230 99,958,365 29,757,610 94,046,015 28,905,040 94,434,485 32,101,358 90,960,977 30,261,381) 91, 225, 437 18, 098,560 94,990,087 23, 008, 207 88,765,340 29,155, 288 97,984,683 32, 858,158 99, 684,773 39, 974, 838 90,780,753 31,010,394 96,734,057 $168,475, 361.85 175,130, 261. 45 181,939, 847.15 180,902, 430.90 186,667, 773.47 186, 875, 26 186,306, 330.45 193,274, 193.67 192,717, 946. 70 202, 859, 832.45 211,880, 525.68 130.07 26,962,168 29, 651, 464 20, 853,500 33,574,110 22,135,780 30,234, 688 36, 591, 356 25, 516, 410 26,163, 492 37,441,932 36,127,702 20, 668,210 104,853,971 96,697,913 91,953,949 99,561,293 109,581,730 119,887, 370 131,959,112 124,750,394 134,838,190 140.613. 658 129,264,228 120,888,448 202,955, 184.27 212, 869, 913.88 218,818, 253.63 213, 239, 994.15 200,301, 128.81 193, 866, 246. 89 194,592, 1.34 206,383, 036.44 197,713, 115.52 191,074, 575.11 199,339, 133.29 203, 885, 218.56 25,043,518 24,802,813 26,586,125 20,783,433 27,350,140 37,235,793 34. 669,943 39,557,233 42,073. 803 34,925,823 30,668,090 31,316,100 130,986,592 130,210,717 128,826,517 136.614, 789 129,044, 662 116,792,759 118,541,409 123, 393,519 116,675,349 120, 937,229 123,483,119 122,985,889 194,655, 264.12 196, 245, 980.81 197,874, 421.96 191,589, 111.80 192,252, 714.96 186, 711, 560.58 182,218. 163. 98 180, 654, 670.30 189,196, 423.02 21 187,572, 187,496, 672.06 190, 052.47 20,452,870 i 138,657,169 28.222,835 I 130,604,804 24,614,210 | 134,938,079 177,386,285.19 187,988,948.14 185,287,715.87 15 It is true that one hundred millions of this idle gold is held specially for redemption purposes, but the fact remains still that o f the total gold in the Treasury March 31, 1890, $85,287,715.87 is neither reserved nor represented by certificates, as against only $11*431,048 o f silver in a like dormant state. I f these figures show anything they demonstrate the confidence o f our people in silver and their willingness to support the Government in sustaining that metal in the face o f all adverse foreign legislation. They also refute the theory that the coinage o f silver nec essarily drives gold from the country, the contrary being the practical effect, as shown by the official figures given. The pending bill, if relieved from the bullion feature, would be in my opinion equivalent to free coinage, inasmuch as it would call for an amount of silver annually for coinage purposes in excess of the world’s surplus production. With this bullion feature eliminated I am satisfied that within a brief period%of time, after this bill, if prop erly amended, becomes a law, the ancient ratio between gold and silver will be restored; and so believing, I am in favor of the bill with that objectionable feature; eliminated. If an amendment is allowed striking out the bullion-redemption clause, I am prepared to accept this bill as an indirect means of reach ing Iree coinage; but if such amendment is not allowed, lean not lend my support to the measure. The bullion-redemption clause is an in novation in monetary science without a precedent anywhere, and with out the shadow of justification. of the bill may be nullified. Under that clause all other provisions Who can safely predict that Treasury officials, who may be unfriendly to silver, will not use the discretion given by it to defeat the honest purposes of the remaining paragraphs of the bill ? It is conceded that the same identical bullion may be de posited over and over again without limit. What, then, is to prevent a syndicate, interested in preventing expan sion of our circulation or in depressing the price of silver, from ac cumulating $4,500,000 worth of silver bullion between this and the time the law becomes operative, and, on the first day it goes into effect presenting that amount in one lump at the Treasury, and for it receive the entire note issue of the first month ? action. Nothing could prevent such Then on the last day of the first month the notes received could be surrendered and the same identical bullion could be withCAB 16 drawn and redeposited on the first day o f the next month, and thus the operation could, and I apprehend would, be repeated while the bull ion clause remained. The motion to recommit is the only remaining parliamentary method by which this objectionable feature can be strickon out, and it is known that recognition has been promised one of our Democratic friends to make that motion. I f the motion is made to recommit to the Commit tee on Coinage, Weights, and Measures, with instructions to report a free-coinage substitute, it may not prevail; but if the instruction is given to report back the bill with the bullion redemption feature stricken out it will in all probability carry. Why not, then, embody that prac tical instruction in the motion ? What we desire is practical legisla tion, rather than no legislation. We desire to take a step forward and to cease standing still. The friends ot the free and unlimited coinage of silver can not support the bullion features of the substitute; but with the bullion provision stricken out. the measure gives us an open high way to free coinage, without doing violence to the fears of those who apprehend an avalanche of old silver coin from Europe. Under the bill this Government will purchase $4,500,000 worth of silver monthly, or $54,000,000 worth per year, at a price not exceeding $1 for 371J grains fine or 412\ grains standard .9 fine, and when the market price reaches a point where 371J grains fine equals or exceeds in value $1, then, and while such conditions remain, our mintis are to be open to the coinage of silver in conformity with the terms of the free-coinage act of 1837. For the silver purchased legal-tender notes of the Government will be issued, thus practically relieving the silver producer from the inconvenience incident to delay in waiting for his silver coin at the mint. These legal-tender notes are made redeemable in coin. The bullion feature alone throws a shadow over these excellent provisions and stands as a menace to the realization of the happy results which would follow from their honest enforcement. expunged, I can support the bill. When that bullion proviso is As long as it remains, my vote and voice will be recorded and heard in opposition. I trust the motion to recommit may be so framed as to enable the House to finally pass the bill minus the bullion clause. CAR O
@FedFRASER