The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1897-05-20
RETIRING THE GREENBAcKs.


For many years the bankers and
money magnates and their tools in
Congress have been trying to do away
with the greenback currency so as to
give the entire field to bank paper pro-
misses. In all this they have hitherto
failed. But the recent interview of
Chairman Dingley in which he declared l
that the Republican tariff policy would
create large surplus, and that this sur.
plus would be used to retire greenbacks
by holding them in the treasury. Though
put forth guardedly it has called forth
much discussion. William ]. Bryan
comments on it in column letter in
the New York "Journal," which may be
accepted to represent the free silver side.
Meeting Mr.. Dingley's assertion that
the gold drain from the treasury, that
caused the bond issues, was the result of
insufficient revenues, Mr.. Bryan says:
The fact that gold Withdrawals began
before there was deficit, and ceased
while the deficit was increasing, shows
that there is no necessary or intimate
connection between the revenues and the
Withdrawals. If gold is needed for ex-
port, it will be drawn out. no matter
whether there is current deficit or |
surplus, so long as the treasury stands
ready to furnish gold on demand. The
recent Withdrawals of gold took place
Just at time when, for the first time in
several years, the revenues exceeded the
expenditures.
MIR. Cleveland declared in his message
that the bond issues we're not caused by
deficient revenues. While MIR. Cleveland
would prevent the gold drain by re.
/ deeming and destroying the greenbacks
impossible at this time-Mr. Bryan
observes:
If gold is desired for boarding, or for
, the purpose of forcing an issue Of bonds,
1t will be withdrawn, whether there is
surplus or deficit, unless the secretary
protects the government by exercising
r his option and redeeming in silver.
When falling prices make ordinary loans
unsafe and ordinary investments un-
3 profitable, 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
y the treasury by presenting greenbacks
4 and treasury notes, and then use the
gold to purchase the bonds issued.
Ten millions of gold has been drawn
from the treasury during the last two
weeks when there was treasury surplus
of $l2S, 600, 900, exclusive of the $l0e ,000,-
600 gold reserve, and when receipts were
r in excess of expenditures.
Letters in the journal" from score
- of Congressman deny the power Of the
treasury to withdraw greenbacks in the
manner indicated. Mr.. Gallery, of
Louisiana, who is a gold Democrat
says:
1t will certainly be an evasion of the
law. The law regulating the issue of
greenbacks is mandatory, and compels
n reissue. There is no authority foI
/. any secretary of the treasury to pile
, them up in the treasury and decline to
pay .hem out. You cannot cure the
u currency Ills by tariff that creates a
q surplus.
g Among others who contribute to the
d Journals" symposium on the Dingley
g proposition is ex-senator Ingalls,, of
,s Kansas, who represents the Republican
y side. He says:
g. The fatal infrmity of Mr.. Dingley's
(. theory is his assumption that the ex'
a ecutlve has the right to hold the green
backs in the treasury, either to exchange
- for gold or for the purchase of bonds.
l. The greenbacks, limited to S346, ,0l6,
Of we're intended as a permanent and con.
Z. slant addition to the legal tender cur.
:. rency Of the country, and any policy
which has for its object their temporary
IL or final withdrawal is without warrant
in law.
ss 1t is well this question has come up al
this time. Senator Mills of Texas, in
4 terpreted the Republican policy, indica
W ted by Mr.. Dingley, in this way: "They
4 intend to fund the non-interest' bearing
20 debt of the United States, including the
B. greenbacks and demand notes, amount
d ing to about $500, ,OOO, 900 in round mum
re bers, by the issuance of long time
D. interest bearing bonds, which are to be
20 used for national banking purposes
substituting for debt that costs the
people nothing one that will add to theil
burdens"