Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-07-16
AN OBJECT LESS ON
The Country May Have an Experience O
Being on Silver Basis.
Rumored Plan to Use Silver for Re-
demptiOn of Observation-Disclosures
by Treasury Omcials.

The report comes thro Ugh Wall street
representatives here that the country ia
likely to have an experience Of being on a
silver basis. not only before there is any
legislation on the subject, but before the
November elections. This report cor
responds to one which was current among
some of Mr.. Clevelands friends in Chicago
during the convention and may be based
upon what was said at that time. Mr..
John E. Russell Of Massachusetts, said in
Chicago that 1t was the purpose Of Mr..
Cleveland, il gold was taken from the
treasury. not TO attempt to negotiate fur
ther bond sales. but to use silver in the
treasury for the purpose Of redemption of
the greenbacks. This is substantially what
the wall street report says. and some
slight color is given to 1t by the fact that
the department is engaged now in coming
some silver to make up for the deficiency
OF silver coin in the treasury caused by
redemptions already made The proposition
advanced Is that the gold reserve, which is
now about $2,O0O,UOO below the hundred
million mark. will be rapidly depleted, and
that another sale of bon.is to repenish the
gold reserve will not be practicable in vie "
OF the existing political conditions. The
statement is advanced that capitalists will
not seek investment in any new govern
ment bonds and that bids at or above par
could not be had If an offer of bonds were
AAieauS. he oeplctIOH Oh tNS SOIu reserve,
an inability to get gold through bonds and
q demand for further redemption of green
backs after the gold reserve was exhausted
would leave the treasury alternative but
the exercise of the option to redeem green
backs in silver This. 1T is held, would
bring about period OF depression and
financial disturbance. with the loss of credit
10 the government, which wolld give the
OF u silver currency and 1t is predicted
that should this state of afflirs fcyelop
prior to the election 1t would have a very
decided influence upon the result.
Denied in Official Circles.
In official circles all knowledge Of such a
purpose on the part of Mr.. Cleveland is de-
MED. and doubt is expressed whether under
any circumstances Mr.. Cleveland could be
driven to redemption In silver where gold
was demanded. Treasury officials profess
to believe that if it should become neces-
sary to replen:sh the gold reserve bonds
can be sold in spite Of the unsettled politi-
cal conditions. The sales might not be
made as advantageously as heretofore, but
1t Is not doubted in departments that the
legal minimum price of par could at least
be had. The reserve is not low enough yet
to excite serious apprehension, though 1t is
fully realized that a systematic raid might
take the gold out very rapidly at any time.
1t is not, however, to the interest of the
capitalists of the country to force the gov
ernment to a silver basis merely as a po-
htical experiment. especially 1t Is doubt
full what the effect politically would be.
1t is said, moreover, that Mr.. Cleveland Is
not greatly impressed by the demonstra-
tons Of strength in the silver movement.
He is said to believe that the alarm Is
greatly exaggerated; that the silver senti-
ment Is confined within a small compass.
and that the combined gold vote of the
country will be strong enough to render
the election of Mr.. Bryan and the success
of silver impossible. 1t is said that he can
not be brought to believe that the silver
movement Is anything more than a super
ficial hubbub.