Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-11-18
Makes a Candid Admission.
THE QUESTION OF THE DAY.
AMI the Secretary's Opinion as to Its
Proper Solution.


AnI the Secretary's Opinion as to Its
Proper solution.
The question to consider now is: What policy
will result III the least strain on resources
and will require the least resort to the exercise
of these extraordinary powers conferred on
those in authority to maintain the policy of
gold and silver: In my opinion. with all orr
power natural and conferred, with all our re-
sources applied TO their fullest extent. we can
not maintain the parity of the two metals il
the policy of free coinage of silver is to pre-
vail LApplausel l am firmly of the opinion
that the parity of the two metals can be main-
tanned under the present policy. The present
indications are that the balance of trade with
foreign nations during the next two years at
least will require gold shipments to us to pay
the balance in our favor.
Parity Under Two Conditions
Under such conditions the work of main
tanning the parity will not require the exercise
of the extraordinary resources of power.
Even if the balance of trade should turn
against US. which seems to me quite impossi-
bic, believe we would weather the storm and
preserve parity. But under free coinage silver
would take the place of gold in settling bal
ances. If the price of silver were advanced
from less than 81 an ounce to 81 20 II the sill
yer for sale in the world would be directed to
this country To maintain parity under such
conditions would be a task requiring more
than our vast resources
Now, Gentlemen, What'n You Have?
In my opinion the practical question for
you TO consider is which of these two policies
do you prefer? | know you have expressed a
desire for the repeal of the present law, and
as understand it, you do not propose to sub
stitute law of any kind. In other words
you propose that silver shall take care of itself
have not given much thought to this phase
of the subject, because don't believe congress
will indorse your views. But think can see
clearly that if the government goes out of the
a large decline, in which event the task of
maintaining the parity viii be embarrassing
and difficult.
Gold Too Narrow a Basis.
Believing that the good sense of the business
world in the near future must be brought into
harmony with us on the proposition that gold
alone is too narrow a basis on which to build
the worlds financial strutsure, have much
hope that the best judgment of all concerned
will create better and more extended use of
silver, TO be followed by international agree
ments by which the parity of the two metals
may be maintained. IApplause.l
Reply to Pointed Quest ion.
After the applause which greeted the
conclusion of the secretary's address had
subsidized Mr.. Smith asked Secretary
Foster to define his actual powers as to
the issuing of treasury notes for gold.
Secretary Foster answered: The resump-
tioD act confers authority upon the secre-
tary of the treasury to issue bonds to any
extent he may feel called upon to do. TO
increase, to maintain, or to decrease
his gold reserve. The act of July
IA, 1880, commands me to preserve
the parity between gold and silver. 1t
has always been the custom in this coun-
try to pay its obligations in gold. There.
fore, should there be any trouble about
this and the present hundred millions of
gold reserve fund were called out or en-
trenched upon, it is within his power, un-
der the law, to issue bonds for gold up 10
s per cent and replace or increase that
reserve fund"