s a part of their lawful reserves.

On the demand of the holders these Treasury notes were to be redeemed in
gold or silver coin, in the discretion of the Secretary of the Treasury;
but it was declared as a part of this redemption provision that it was
"the established policy of the United States to maintain the two metals
on a parity with each other upon the present legal ratio or such ratio
as may be provided by law." The money coined from such bullion was to be
standard silver dollars, and after directing the immediate coinage of a
little less than 28,000,000 ounces the law provided that as much of the
remaining bullion should be thereafter coined as might be necessary to
provide for the redemption of the Treasury notes issued on its purchase,
and that "any gain or seigniorage arising from such coinage shall be
accounted for and paid into the Treasury."

This gain or seigniorage evidently indicates so much of the bullion
owned by the Government as should remain after using a sufficient amount
to coin as many standard silver dollars as should equal in number the
dollars represented by the Treasury notes issued in payment of the
entire quantity of bullion. These Treasury notes now outstanding and in
circulation amount to $152,951,280, and although there has been thus
far but a comparatively small amount of this bullion coined, yet the
so-called gain or seigniorage, as above defined, which would arise
from the coinage of the entire mass has been easily ascertained to be a
quantity of bullion sufficient to make when coined 55,156,681 standard
silver dollars.

Considering the present intrinsic relation between gold and silver, the
maintenance of the parity between the two metals, as mentioned in this
law, can mean nothing less than the maintenance of such a parity in the
estimation and confidence of the people who use our money in their daily
transactions. Manifestly the maintenance of this parity can only be
accomplished, so far as it is affected by these Treasury notes and in
the estimation of the holders of the same, by giving to such holders
on their redemption the coin, whether it is gold or silver, which they
prefer. It follows that while in terms the law leaves the choice of coin
to be paid on such redemption to the discretion of the Secretary of the
Treasury, the exercise of this discretion, if opposed to the demands of
the holder, is entirely inconsistent with the effective and beneficial
maintenance of the par