isting system of currency, the
substantial features of which were a limited amount of United States
notes (with or without the legal tender quality), promptly redeemable
in coin, with ample reserves in coin and power if necessary to
purchase coin with bonds, supplemented by the circulating notes of
national banks issued upon conditions that would guarantee their
absolute security and prompt redemption, all based on coin of equal
value, and generally distributed throughout the country, was the
best system ever devised, and more free from objection than any
other, combining the only safe standard with convenience for
circulation and security and equality of value.

After a statement of the amount of standard silver dollars issued
under existing law, I described the measures adopted to facilitate
the general distribution and circulation of those coins, and the
great expense incurred by the United States in transporting them.
With all these efforts it was found difficult to maintain in
circulation more than thirty-five per cent. of the amount then
coined. While, at special seasons of the year and for special
purposes, this coin was in demand, mainly in the south, it returned
to the treasury, and its reissue involved an expense for transportation
at an average rate of one-third of one per cent. each time. Unlike
gold coin or United States notes, it did not, to the same extent,
form a part of the permanent circulation, everywhere acceptable,
and, when flowing into the treasury, easily paid out with little
or no cost of transportation. At a later period, when the amount
of silver dollars had largely increased, the department was never
able to maintain in circulation more then $60,000,000.

For the reasons stated I earnestly recommended that the further
compulsory coinage of the silver dollar be suspended, or, as an
alternative, that the number of grains of silver in the dollar be
increased so as to make it equal in market value to the gold dollar,
and that its coinage be left as other coinage to the Secretary of
the Treasury, or the Director of the Mint, to depend upon the demand
for it by the public for convenient circulation. After a statement
of the great cost of the coinage of these dollars, I recommended
that Congress confine its action to the suspension of the coinage
of the silver dollar, and await negotiations with foreign powers
for the adoption of an international ratio. I expressed the
conviction that it was