The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-08

How the Secretary Would Remedy
the Evils He Complains Of.

the Evils He Complains Of.
Secretary Gage then unfolds his plan"
which is embraced in the following recon-
mendations:
First-I recommend that proper legisla-
ton be enacted which will establish sep
lions OF the treasury as they
relate to revenues and expendi-
lures, department to be designated and
known as the issue and redemption division
TO this division the sum of SIPS OOO 900 in
gold should be set over from the general
fund in the treasury, to be used only for
redemption purposes, and all the silver dol
lars now held for redemption of silver GER
tificates, and all the silver bullion and dol
larS coined therefrom, bought under the act
OF 1851, should be passed to the same ac-
count Further, that the sum of $500 0OO 900
IN the legal tender notes of the United
States known as greenbacks be collected
as hereinafter described, and deposited i'm
the said issue and redemption division to
be disbursed therefrom only upon the re-
amount of gold coin. Such gold, when so Sc
cured, to be held in said division as part of
the general redemption fund.
Second-l recommend that provision he
made for the issue of refundiny loan honds
payable after ten years at the pleasure Of
the government, such bonds to bear inter-
pay able. 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
or payment in the years 1904, 1907 and 1925
The advantage involved i'm the proposed
action lies in this: IT removes an ambiguity
uity which affects unfavorably the govern
mcnt credit. The word "coin now used to
express the obligation in the public debt
is an ambiguous word. 1t is no doubt un-
derstood by the more discriminating public
creditor to mean gold coin, and the solemn
act of Congress pledging the maintenance
of cflxy rrskx
makes it impossible to construe the word
'cOin," as therein used. to mean anything
other than gold or it's full equivalent. Yet. as
this is conclusion of logic rather than
a clear statement of fact, the simpler and
more humble investors. or would-be invest
ors. in the public debt are confused and
doubtful, and the public credit is the weaker
therefor.
WOULD HELP OUR CREDIT
Nor is the course thus recommended with
out wise precedent. The earlier issues of
our government bonds were payable in
dollars" With greenbacks a legal tender
with gold and silver on a substantial COM
mercial parity but both at large premium
over paper money similar question arose,
What did dollars mean? And in 1869, Ito
remove all doubt upon the subject" an act
was passed solemnly pledging the faith of
the United States to the payment in coin
or it's equivalent of all it's interest-bearing
obligations. except when otherwise express
ly provided in the law. The commercial dis
parity between our 'legal-tender dollars
and "coin dollars was not then essentially
greater than the present commercial dis
parity between silver and gold. This act of
1869 was judicous. To refund our Outstand-
ing bonds now payable in coin into bonds
payable in gold would strengthen and con-
firm the public credit and put in a posi-
tion to command the markets of the world
for our securities on the most advantageous
terms.
1t may be objected that the adoption of a
specific form of payment for the public debt
would be inimical to the spirit of a quail
flying clause in the repeating act of 1883.
which reads: And it is hereby declared to
be the policy of the United States to con-
tinue the use of both gold and silver as
standard money and TO coin both gold and
silver into money OF equal intrinsic ana ex-
changeable value II this this objection be
the only two methods by which the gold
and silver coins now in concurrent use with
us can be so continued as to maintain the
parity in value of the coins OF the, two
metals and the equal power of every dollar
at all times in the market and in the pay
ment of debts
one of these methods is familiar to us,
since ii has been in daily use in our finan-
cial system since 1873. The other method
would consist in so advancing the coinage
value of silver by international agreement
or otherwise as to lend natural parity be-
tween the two, SO that the present arti-
fetal method could be safely abandoned.
There is nothing in the proposition now
under consideration to interfere with the
purpose to secure an inauguration of the
latter method. 1t must however. be admit
ted to be a method which. If adopted, viii
operate to throw upon the governing body
whatever measure of risk may be involved
in the experiment, and it is manifesty just
that there the risk should lie, rather than
upon the helpless and possible nonaSse0ting
creditor.
To accomplish the objects herein suggest
ed without contracting the circulation.
some other form of paper money must be