The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-11-07

separate and apart from the ordinary opera
tons of the treasury as they relate to rev.
enue and expenditures, a department to be
designated and known as the issue and re-
demption division. To this division the sum
OF $l25.oO0,O 900 in gold coin should be set
over from the general fund In the treasury
to be used only for redemption purposes
that all the silver dollars now held for re-
demption OF silver certificates, and all the
silver bullion and dollars coined therefrom,
bought under the act OF 1890 be passed to
the same account.
Further, that the sum Of 5000 900, 900 In
the legal tender notes of the United States.
sncwn as greenbacks, be collected rs here
matter described and deposited In the SAID
department OF issue and redemption to he
disbursed therefrom only upon the receipt
IN exchange therefor of an equivalent
amount of gold coin, Such gold, when so
secured, to be held in said department as
part OF the general redemption fund.
REFUNDING LOAN BONDS.
Second, l recommend that provision be
made for the issue OF refunding loan bonds,
payable after ten years at the pleasure OF
the government. Such bonds to bear inter-
est at the rate OF az per cent per annum.
payable. principal and interest, in gold coin
ana that the secretary OF the treasury be
authorized to issue such bonds and receive
in payment therefor, with an equitable al
| lowance for the difference in interest, any
part or all OF the outstanding loans of the
United States which mature by their terms
oi payment In the -ears 1904 and 1907.
The advantage involved in this proposed
action lies in this: First. it removes an
ambiguity from our contract obligations.
an ambiguity which affects unfavorably the
government credit, The word coin now
used TO express the obligation in the. public
dent Is an ambiguous word. 1t is no doubt
understood by the more discriminating pup-
lic CT editor to mean gold coin. and the SOL
emn act OF congress pledging the mainte-
nance or silver coin upon a parity with gold
coin makes 1t Impossible to construe the
word coin as therein used to mean any
thing other than gold or its full equivalent
Yet, as this Is Il conclusion OF logic rather
imam clear statement OF fact, the simpler
ana more humble investors or would be in
vestors in the public debt, are confused and
doubtful and the public credit is the weak
er therefor
Nor is sucl, course without wise
precedent. The earlier issues OF our gov
eminent bonds were payable in dollars,
Win greenbaeks a legal tender, with gold
ana silver on substantial commercial
iaiity--but both at q large premium over
paper money~-al similar question arose:
| What do dollars mean? And in 1881 10
remove all doubt upon the subject, an
| act was passed solednnly pedging the
faith OF the United States 20 the pay
tnent in coin or Its equivalent of ali its
| interest bearing obligations, except when
otherwise expressly provided In the law
me commercial disparity between our
| iesai tender dollars aud coin dollars
was not then essentially greater than tho
present commercial disparity between sill
| yer and gold. This act of 1863 wa, iu
| useious, To refund our outstanding bonds
now payable in coin mta honus layable
IN gold would strengthen and costlm IN,
public credit, aud put us N a ro.tst III "a
command the markets OF the world for
/ terms
/ IT may be objected that the adoptiou
OF specific form OF payment for the
pubic dabt would DO inimical To the spirii
OF qualifying clause In the repealing
sct or 1888, which reads: And It is hereby
declared to be the policy of the United
s'ates TO continue the use OF both gold
anu SILVER as standard money and Ia
WV noln gold ana silver into money q
Suuai intrinsic and exchangeable value
II this objection be raised 1t loses ali
Iores when we consider the only TIVE
methods by which the gold and silver
COINS now In concurrent use with us car
DC SO continued as to maintain the par.
NY OF the value OF the two coins apt
me equal power OF every dollar AZ al
umss IN the markets and in the paym mi
OF debts, One of these methods is IA.
nl'sr TO us, since II has been In dahl
Use IN our financial system sincs 1874
Inc ether method would consist in 8, ad
sancing the coinaEe value OF silver by in
.ernsuonsi agreement or otherwise. a,
70 isna . natural parity between the iva
20 tnat the present artificial method coul,
% safely abandoned. There is nothing i,
me proposition now under censidera,io,
70 m'erfcre with the purpose 10 secur
~ inauSuration Of the latter ,nesho.i.
MAas'. however be admitted to o. Z meas
ure which. u adopted. will operate !