all, however, assume that under its provisions the Treasury
notes issued in payment for silver bullion will continue to be redeemed
as heretofore, in silver or gold, at the option of the holders, and that
if when they are presented for redemption or reach the Treasury in any
other manner there are in the Treasury coined silver dollars equal in
nominal value to such Treasury notes, then and in that case the notes
will be destroyed and silver certificates to an equal amount be
substituted.

I am convinced that this scheme is ill advised and dangerous. As an
ultimate result of its operation Treasury notes, which are legal tender
for all debts, public and private, and which are redeemable in gold
or silver at the option of the holder, will be replaced by silver
certificates, which, whatever may be their character and description,
will have none of these qualities. In anticipation of this result and
as an immediate effect the Treasury notes will naturally appreciate in
value and desirability. The fact that gold can be realized upon them and
the further fact that their destruction has been decreed when they reach
the Treasury must tend to their withdrawal from general circulation
to be immediately presented for gold redemption or to be hoarded for
presentation at a more convenient season. The sequel of both operations
will be a large addition to the silver currency in our circulation and a
corresponding reduction of gold in the Treasury. The argument has been
made that these things will not occur at once, because a long time must
elapse before the coinage of anything but the seigniorage can be entered
upon. If the physical effects of the execution of the second section
of this bill are not to be realized until far in the future, this may
furnish a strong reason why it should not be passed so much in advance;
but the postponement of its actual operation can not prevent the fear
and loss of confidence and nervous precaution which would immediately
follow its passage and bring about its worst consequences. I regard this
section of the bill as embodying a plan by which the Government will be
obliged to pay out its scanty store of gold for no other purpose than
to force an unnatural addition of silver money into the hands of our
people. This is an exact reversal of the policy which safe finance
dictates if we are to preserve parity between gold and silver and
maintain sensible bimetallism.

We have now outstanding more than $338,