The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-05-17
He Takes Issue With Chair
man Dingley
And Declares That the Treas.
ury Deficit
WAS AT NO PERIOD
Responsible For Bond Issues or
Gold Withdrawals.
Bankers Eat Their Cake and
Keep it, He Says.

New York, May 17.-William Jennings
Bryan, in the Journal, discusses the
Dingley bill as follows:
chairman DingIey of the ways and
means committee, in his interview pre-
pared for the Journal, reiterates the
charge frequently made by the Repub-
Hcans during the past four years
namely, that the bonds were issued be-
cause of a deficit in the revenues. and
he holds out the hope that the drain
the deficit ceases.
I do not believe that this theory will
explain the drain upon the gold reserve
nor do think that his hopes are we'll
founded. While it is true that a large
part of the money received from the
sale of the bonds was used in making
good the deficit in the revenues, yet at
no time did the deficit cause the issue
of bonds.
Instead of being an injury the deficit
was during that period a benefit, be-
cause the money which accumulated
from the sale of bonds could not have
returned into the channels of commerce
but for the deficit. If, as is probable
the gold would have been drawn out
even if the revenues of the government
had equalled its expenses, then that
money would have been held in the
treasury and business would have been
crippled more than it was.
THE fact that gold Withdrawals be-
gan before there was deficit and
ceased while the deficit was increasing
shows that there is no necessity or in
innate connection between the revenues
and Withdrawals. If gold is needed for
export 1T Will be drawn out, no matter
whether there is a current deficit or
surplus, so long as the treasury stands
ready to furnish gold on demand. The
recent Withdrawals of gold took place
at a time when for the first time in
several years the revenues exceeded the
expenditures.
1.-The press dispatches did not attribute
the late Withdrawals to deficit nor
did they attribute them to a loss of
confidence. The reason given was that
a new demand for gold had sprung up
in Japan and Austria
If gold is desired for boarding, or
for the purpose of forcing an issue of
bonds, it Will be withdrawn, whether
there is a surplus or a deficit, unless
the secretary protects the gOVernmen t
by exercising his option and redeeming
in silver. When falling prices make
ordinary loans unsafe and ordinary in
Vestments Improbable, the holders of
idle capital are apt to advocate an issue
of bonds for the purpose of securing
safe investment, and when the desire
for bonds becomes strong enough they
can draw gold from the treasury by
presenting greenbacks and treasury
notes and then use the gold to purchase
the bonds issued
THAT such plan has been contem-
plated by New York fnancierS cannot
be doubted. Some three or four years
clared in case congress refused to re-
tire the greenbaclIs with an issue of gold
bonds the people who wanted green
backs retired should systematically
present them for redemption until they
were all locked up in the treasury.
THAT New York financiers have used
their power to discredit government
paper is evident from the fact that
when an attempt was being made to
repeal the Sherman law they presented
treasury notes for redemption When
they desired to force a retirement of
greenbacks they presented greenbacks
for redemption. So long as the secre-
tary of the treasury surrenders to the
holders of government paper the right
to choose the coin in which payment
is to be made, so long will it be posi-
BILE for the financierS to present either
treasury notes or greenbacExs and draw
out the gold.
Mr.. Dingley is in error in supposing
that the redemption of $50, 100000 of
greenbacks or treasury notes would
make such a scarcity of small notes as
to prevent further withdrawals of
gold We have sometimes had during
the last four years considerably more
than $50 900, 600 of these notes locked
up, and yet gold has been Withdrawn.
There has been a well founded sus-
picion that much of the gold drawn
out by the presentation of greenbackS
and treasury notes was for the purpose
of forcing a retirement of all govern
ment paper. If the financiers conclude
to bring their influence to bear upon
the present administration as they did
upon the last, they will have no d1fn-
Guilty in forcing an issue of bonds, IN
less the new secretary of the treasury
shows more power of resistance than
did the last one.
IF the national banks succeed in Sc
curing the law which they have advo-