The Democratic press. [volume] (Ravenna, O. [Ohio]) 1868-1901, 1885-07-23
The superstiltous worship of Gold


The Secretary of the Treasury is
plagued with a superst.tious reverence
for the gold standard, and with an
equally superstitious dread of silver.
He has Sis, COG, 900 of gold coin and
bullion at his disposal, but he fears
that he is going to run short of that
precious metal, and has formally ap-
peaIed TO the banks of this city for
such help as they can give. His
avowed purpose is to maintain as long
as possible the payment of govern
ment obligations exclusively in gold.
and to retain his accommodating hoard
Of silver dollars, in the hope that he
can persuade Congress to repeal the
law requiring their coinage.
That New York bankers and bank
officers should desire the maintenance
of the gold standard is natural. They
have been accustomed to that standard
for half century, their transactions
with Europe are based npOn it, and
transition to the silver standard would
i'll measure, diminish the purchasing
power of their capital. But the Secre
tary of the Treasury is an officer of the
United States Government, and as
such Ound to the laws of COngrers,
For him to organize n conspiracy with
those laws is an act of a serious and
| improper character.
The defence put forward in behalf of
the Secretary is that he is required by
law to keep always in the Trea. ury
unimpaired fund of $l00,0 600 900 in
gold for the redemption of the out
standing legal tender notes, and that
us soon aS he percpivps that this fund
is in danger of being depleted he has
the right to provide for replenishing
it. In the reports published of Treas
urer JOrdan's conference in this city
on Monday with the bank presidents,
reference is several times made to this
supposed provision of law. and to the
obligation to obey it. There is no
such law, and consequently no such
| obligation.
TO begin with, there is no law re
quiring any part of the national debt
whatever to be paid exclusively in
gold. All our bonds are expressly
payable lin coin," The resumption
act of 1875 provided for resumption
"in coin," and the remaining debts of
the government are payable in law
full money" The word "gold" is no.
where found in any statute providing
for payments by the United States
except that relating to gold certificates.
| Furthermore, there is no act of Con-
gress requiring SlO0,000,000 or any
other sum to be kept in any kind OF
money as special fund for the re-
demption of the legal tenders. Secre
tary Sherman, in 1880, recommended
hat such an act be passed, and that
the limit of the fund should be Sl42,
900, 900, but no heed was paid to his
recommendation. The only ground
for setting aside 500, 900, 900 gold as q
redemption fund is a purely arbitrary
construction of the resumption act.
That act authorized the sale of bonds
" at not less than par in coin," and
the use of the proceeds for redemption
purposes. The amount of bonds sold
under the act was only $95, 900 900, no,
Sl00, ,000, 900; but the act says nothing
about retaining that amount of gold
or any other in the Treasury. The &C
OF July Il, 1882. authorizing the issue
of gold certificates against deposits Of
gold coin, provides that the issue Ol
such certificates shall be suspended
whenever the amount of gold coin
and bullion III the Treasury reserved
for the redemption of United States
notes falls below Sl0O,000 ,0O0," bul
this provision clearly cOntemplates
that the fund may fall below SlC0,OO0,,
600 without eutalling any oLhef result
than the suspension OF the business q
taking gold Oh deposit.
The situation of the matter is this
The Treasury has on hand about SllS,
900. 900 gold, S6S, 900. 900 silver, and
SIS 900, 900 legal tenders, leaving S33l :
000, 600 of legal tenders in general cir
culation. The $6S 900, 900 silver is just
as available by law for the redemption
of the legal tenders aud fer the pay
ment of interest on the public debt as
is the Sis, ,000, 600 of gold. Both to
gsther are amply sufficient for the
needs of the government, aud the
making provision fer deficiency of
money at this moment is premature.
| 70 mCye heaven and earth and to
throw the financial world Into alarm
for the purpose Of maintaining pay
| nents exclusively in gold is Is unnec.
essary us it is uniustiiiable.