increased circulation each year to keep pace with the increase of population; but as the increase of population is accompanied by a still greater ratio of increase of wealth and business, it was thought that an immediate increase of circulation might be obtained by larger pur chases of silver bullion to an amount sufficient to make good the retirement of bank notes, and keep pace with the growth of population.  Assuming that $54,000,000 a year of additional circulation is needed upon this basis, that amount is provided for in this bill by the issue of Treasury notes in exchange for bullion at the market price.  I see no objection to this proposition, but believe that Treasury notes based upon silver bullion purchased in this way will be as safe a foundation for paper money as can be conceived.

Experience shows that silver coin will not circulate to any considerable amount.  Only about one silver dollar to each inhabitant is maintained in circulation with all the efforts made by the Treasury Department, but silver certificates, the representatives of this coin, pass current without question, and are maintained at par in gold by being received by the Government for all purposes and redeemed if called for.  I do not fear to give to these notes every sanction and value that the United States can confer.  I do not object to their being made a legal tender for all debts, public or private.  I believe that if they are to be issued they ought to be issued as money, with all the sanction and authority that the Government can possibly confer.  While I believe the amount to be issued is greater than is necessary, yet in view of the retirement of bank notes I yielded my objections to the increase beyond $4,000,000.  As an expedient to provide increased circulation it is far preferable to free coinage of silver or any proposition that has been made to provide some other security than United States bonds for bank circulation.  I believe it will accomplish the first object proposed, a gradual and steady increase of the current money of the country.

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What then can we do to arrest the fall of silver and to advance its market value?  I know of but two expedients.  One is to purchase bullion in large quantities as the basis and security of Treasury notes, as proposed by this bill.  The other is to adopt the single standard of silver, and take the chances for its rise or fall in the markets of the world.  I have already stated the probable results of the hoarding of bullion.  By purchasing in the open market our domestic production of silver and hoarding it in the Treasury we withdraw so much from the supply of the world, and thus maintain or increase the price of the remaining silver production of the world.  It is not idle in our vaults, but is represented by certificates in active circulation.  Sixteen ounces of silver bullion may not be worth one ounce of gold, still one dollar’s worth of silver bullion is worth one dollar of gold.