The times., 1897-12-08
COIN AN AMBIGUOUS WORD
Tabulated Statistics Embodied in
the Revenue Cutter
Service Receives Attention Const
and Geodetic Survey -Sundry
Treasury Subjects Treated.

shadowed in his New York address at the
Chamber of Commerce banquet, the Sec
retary presents elaborate plans Tor
radical Change in the monetary laws OF
the country. He begins by pointing ut
what he cglls the menace to public cl edit
occasion ed by the large volume Of cut
standing demand liabilities Laying down
the undisputed proposition that the de-
probation OF silver, commercially, las
enormously increased the responsibility Of
the government, he aekno Wedges that
the logical consequences OF the fact must
be boldly faced
A the end OF the fiscal year there were
outstanding, the report says, S4l0,33T,-
$40 in silver or silver certificates, and
$114, ,s67 $50 in Treasury notes. All these
dollars are cf equal dignity aud value,
the Secretary thinks, because OF the re-
peal or the so-called Sherman law, the
repeating clause p!edging the governlnent
TO safeguard the parity OF gold aud silver.
Conformablc To this pledge the Gov ;rn-
ment makes no discrimination between
gold ans, silver, or between metallic money
and paper, when il comes to. collecting
taxes, but on the other hand, 1t holds
itself ready 10 give the public creditor
his option when it comes TO paying out the
holder of & promise to pay from the Go-cIn-
ment being invited TO demand any sort of
money he wants, in acquittance OF his
claim. This undertaking, the Secretary
frankly says, requires adequate legisla-
tion for ITS continued execution. espec-
tally as in addition. the department holds
| Itself ready, on demand, TO exchange either
form of metallic money for the other.
As trerc axe 1915, 0O0. 900 in outstand-
ing legal tender notes redeemable in gold
TO be added tC the sums already euumer-
ated, the total outstanding liability OF the
Government. payable Oh demand, amounts
to more than $500, ,0o0, ,GOU. The state
ment is made that the traditional $iO0.-
100000 OF gold reserve is insufficient TO
meet the exigencies Of the situation.
'If it be urged says the Seer starry,
that tte state OF the Trea sury is fairy
satisfactory now, the answer is that a
| continuance of these good conditions can-
not be assured to us
AS the Government at present insists
| in supplying currency 10 the country by
the direct issue OF its notes and by guar
anteeing a parity, its responsibilities are
| correspondngly great"
The Secretary believes that money is
great strateeist in lime Of war, aud de-
olares that weIffilled chest and i'm
| pregnable credit are ) important as ships
shore batteries. and regiments of mcn.
| The subject should, therefore, be con
sidered from the standpoint of national
defense.
He then proceeds 70 point oGt n ,emedy,
| prefacing his recommendations with an
| apology by saying that he considers such
| relief as he suggests tentative steps N a
direction which, if properly pursued viii
| lead TO conditions ultimately deslrlble."
Recommendations
A department to be known rs the Issue
and Re edemption Division" OF the Treasury
| snould be created. it is argued. with fund
| OF S125, 600 900 in gold at It's disposal, to
be used for redemption purposes. The
| 100000 600 of legal tender notes, known
| as greenbacks, should be collected, de
| posted with this division and paid out
again only in exchange for gold which
gold should become part Of the srdenp-
ton fund.
| Bond Issue Recommended
| Secondly, it is recommended That provis-
| ion be made for issuing > per ent gold
refunding bonds. payable principal and In
terest in gold coin. The OBJECT 4 this, ac-
cording TO departmental logic, is to remove
| ambiguity from our contract cbliga-
tions. The word coin it is asserted, is
| an ambiguous word, tboush the more
| discriminating public creditor" understands
f. to mean gold coiu." This, however, he
continues cheerfu1ly, is conclusion of
| logic rather than statement Of fact"
Then to prove that coin" is an am
| bigucus'' word, and that the more dis
| eliminating public Creditor is right IN his
| interpretation of it, the Secretary declares
that the act of 1869 solemaIy plc,lged the
Government 20 ray outstanding obligations
| in coin or its equivalent.
The objection that the department s plan
violates a later solemn pledge" OF the
Government tact of 1899 to continue the
use Of both gold and silver rs primary
| money is swept away with the cenark that
it cannot be done and the parity main
tanned.
All this leads up to the next PROPOSE
which 5 to place the issuing Of an elias.
tic currency in the hands of private cor
porations, wiki power to contract or ex
pand it at will.
Admitting that tue canceling Of the
4
rency, MI. Gage says that some other
form of paper money must be allowed Il
fill the vacuum which would otherwise
be occasioned. The national bank note
now familiar to cur people i S the Ieadiast
and most practical agent to accomplish
that object, and under reasonable cundi
tions it will be found responsive to tn,
CALI
|
should be amended SO that the minimum
capital required would be $25, ,900. anf
the tax on circulating notes Gne :,alf OF
one per cent. The banks Should he rer
mitted TO issue notes to the par value ot
bonds deposited by them with the Gov
eminent If such bonds are the gold
| bonds ''hereinbefore mentioned.
A quick wGysto get rid Of the green
backs, Treasury notes and silver certifi
Gates, the Secretary Thinks would be I,
exchange national bank notes for then
Wien they are presented for redemption
by banking institutions. AS some nf tbt
bank might not care to swap ,ammod
fties of equal value, it is props sed tha
'the Secretary of the Treasury shall sub
stitute foi Che sreenbacks, Treasury note.
and silver certificates SO deposit III To Sc
cure circulation bonds Ct the same class
and character as the refundins hords
/ first named to the amount of 100000,
900, such bonds To be cLargeabie tc >aic
banks and hy them to be accounted f.
at such Price tnot less than par tht
market quotation sniay indicate to l,e tiei
fair mark etsvaine.
During tue period of time iuterven
ing between the deposit of greenbacks
Treasury notes, and silver certificates
and the substitution of the bonds by the