Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1897-05-29
Bryan ON The BONDS.
The Free silver Champion Replies 10
Chairman DiDgley.

The Free silver Champion Replies u"
Chairman Dingley.
In a letter from Lincoln, Nebr ON
Nav 10. TO the New York Journal VIII.
liam j. Bryan reviews the statements OF
Chairman Dingley, Of the ways ana
means committee, made In a iate in'er'
view for the Journal. The following Is
Mr.. Bryan's letter in its entirety;
chairman pingley. Of the ways ano
means committee, In his interview ple
rared for the Journal. reiterates the chargt
frequently made by the republicans uu'-
ing the past four ~years-namely. that tne
bonds were Issued because of q dencit III
the revenues, and he holds out the nopte
that the drain upoa the gold reserve VIII
cease when the deficit ceases.
81 do not believe that his theory VIII eA-
plaln the drain upon the gold reserve. no'
do 1 think that his hopes are well touho-
ed. While 1t Is true that a large part,
the money received from the sale OF tne
bonds was used in making good The dene'.
in the revenues. yet at no time dio '"e
deficit cause the issue OF bonos.
Instead of being an injury, the deicltw was
| during that period a benefit. because inc
l Jill HlIH
| of bonds could not have returned into tnS
| channels of but for the defcit'
If. as is probable, the gold would nave
| been drawn out; even II the revenues OF the
| government had equalled Its expenses, then
that money would have been held IN the
treasury, and business would have Dech
crippled more than it was.
.'The fact that gold Withdrawals began
before there was q deficit and ceased while
| the deficit was increasing shows hat there
Is no necessary or intimate connection p"'
tween the revenues and the WITHDRAWALS
II gold is needed for export II 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
lust at q time when for the first time IN
| several years, the revenues exceeded the
expenditures.
''The press dispatches did not attribute
the late withdrawal to q deficit. nor diu
they attribute them to a loss OF confidence.
The reason given was that a new oemand
for gold had sprung up IN Japan anu
Austria
"If gold Is desired for boarding. or for
the purpose OF forcing an issue OF Donus'
1t will be withdrawn. whether there Is a
surplus or a deficit. unless the secretary
l Iott1to liz boNS tiN -
option and redecming In silver. Wheh
falling prices make ordinary loans un-
safe and ordinary Investments unproht-
able the holders OF idle capital are apt to
advocate an Issue Of bonds Tor the pur
pose Of securing a safe Investment, ana
when the desire for bonds becomes strong
enough they can draw gold from the treas"
ury by presenting g~reenbacks and treas
ury notes and then use the gold to pur-
chase the bonds issued.
THAT such a plan has been contemplated
by New York financiers cannot be doubted.
Some three or four years ago one of the
New York dailies declared that in case con
gress refused TO retire the greenbacks with
an issue Of gold bonds the people who
wanted grecntacks retired should system
atically present them for redemption unit!
they were all locked up In the treasury.
"That the New York nnancicrs have used
their power to discredlt government paper
Is evident from the fact that when an at
tempt was being made to repeal the Sher'
man law they presented treasury notes for
redemption. When they desired to force
a retirement Of greenhacks they presented
g~reenbacks for redemption. So long as
the secretary Of the treasury surrendcrs
to the holders of government paper the
right to choose the coin In which payment
Is to be made, SO long will 1t be possible
for the fin3nciers to present either treasury
notes or greenbacks and draw out the gold.
MIR. Dingley Is In error In supposin9
that the redemption OF }5O.WO,WO OF green
hacks or treasury notes would make such
il scarcity OF small notes as to prevent fur
Their Withdrawals of gold. We have some
times had during the last four years con.
siderably more than $780, 900. 900 Of these
notes locked up. and yet gold has been
withdrawn,
There has been u well-founded sus-
picion that much Of the gold drawn out
by the presentation of greebacks aud treas
ury notes was drawn out for the purpose
Of forcing a retirement Of all government
PAPER. Ii the linanciers conclude TO bring
their influence to bear upon the present ad-
ministration as they did upon the last
they will have no difficulty In forcing an
issue of bonds, unless the new secretary
Of the treasury shows more power Of resist
ance than the last one.
"It the national banks succeed In Sc
curing the law which they have advocated
for some years-namely. the law permit
ting the issue of bank notes up to par and
reducing the tax on circulation from 0ne
per cent. to a quarter OF one per cent,
they may become Interested In having more
bonds Issued to furnish q basis for bank
notes. II they do, the process Is very
easy. All they have to do Is to present
gr%eenbacks and treasury notes and draw
down the gold reserve, then raise the alarm
and proclaim that the credit Is In danger.
"lf the secretary Of the treasury yields,
as there Is no reason to doubt he would.
they could buy the bonds with the gold
drawn out, and then issue notes upon the
bonds purchased. by this simple process
the banks would be able to secure a 50 fe
Investment for their money, and then by
Issuing notes up TO the face Of the bonds
would be able to use the money besides.
1T Is difficult to conceive of q more ad
vantageous transaction thar that. Usual
ly a man can either eat his cake or keep
It; 1t Is left to the national banker to both
eat his cake and keep It. While others
must be content to use their money. or II
they Invest In bonds must be satisfied with
the Interest on the bonds. the national
banker can. by investing In bonds. enjoy
the Interest upon the bonds and then by
Issuing notes enjoy the use OF the money
also.
II have referred to the fact that golt
may be withdrawn expressly for the pur.
pose Of purchasing bonds. The records OF
the treasury department show that SIS, 600.
Gov were withdrawn for the purpose of pay.
Ing for the first $4,000. 600 OF bonds issued,
and the proportion has sometimes beer
6tedtet IMAM tudl. NO OUe except q EClt
standard financler has been able to Sc,
the wisdom OF a policy whereby bond
are issued to buy gold and then gold fur.
nished to the purchasers to be returned te
the treasury In exchange for the bonds
III the Dinsley bill, as finally passed
yields a considerable surplus over ant
above the expenditures Of the government
that surplus can be converted Into green
backs. and the grcenbacks withheld from
circulation. but II the surplus Is used tc
purchase and retire government bonds, The
g~reenbacks will 60 Into circulation again
In other words, the grecnbacks can onl,
!, be kept in the treasury by q contraction
OF the currency, unless bank notes are in.
creased as rapidly as the greenbacks ar,
drawn In.
1T Is true that when gold Is exchanged
for greenbacks tho gold so paid out rc.
places the greenbacks In the circulation
but II bonds are Issued for the purchas,
Of gold the proceeds must lie idle in tn,
treasury II the revenues excood ,bo ~