The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-27
A GOOD SUGGESTION.

A GbOD SCUOESIAON'
Mr.. John Kelly, in a communication
published in another column, makes
some very sensible comments on the
currency question. His most valuable
and pertinent suggestion Is that the
silver side Of the difficulty be solved
by calling in all silver certificates and
ordering their redemption in silver
dollars as rapidly as presented. We are
amazed at the obtuseness Of Secretary
Gage, whose propositions submitted to
congress threaten to create situation
far more serious than that which they
promise to relieve Heretofore the
only question presented to the Ameri-
can people as expressing danger, and
the only one that has really menaced
the financial solvency of the govern
ment is the existence of the greenback
demanding redemption in gold. 1t is
this which constitutes the endless
chain" whose operation must be stop
ped if we are not to have periodical
raids upon the treasury, exhaustion Of
gold reserve and bond sales to replen-
ish it.
But, while Mr.. Gage is considering
means of retiring the greenbacks and
treasury notes, he includes with these
the silver dollars and silver certificates,
and thus doubles his task. To suggest
to the minds Of the people the practi-
cability of using the silver certificates
for the same purpose for which the
greenbacks were used-that is, to pull
gold out Of the treasury-was q most
unfortunate action, and one unworthy
of a financer. Mr.. Gage, by the prom
inence given to this possibility, here
tOfore dormant, will undo all that he
might accomplish in other directions.
1t will be a sufficiently difficult task
to persuade congress to arrange for the
retirement and redemption Of the
strictly fiat money known as green
backs II the idea is fixed in the pub
lie mind that silver certificates must
also be redeemed in gold, and that to
have monetary reform we must pro-
vide for their retirement or have a
treasury reserve equal to the task of
redeeming them also in gold on de-
mand, we might as we'll give UP all
currency reform.
Mr.. Kelly's suggestion is an excel
lent and sensible one. He urges that
paper money issued against silver be
retired, and the silver put out in its
hot Icrl,f 10
been done at the outset. The silver
certificates should never have been is
sued If there is such a demand and
such an opening for the use of silver
coinage in this country as the advo-
Gates of that metal claim, then the
people will take and use all the silver
dollars now in existence. The silver
certificate was not issued in response
to a popular demand, but for the pur-
pose of trying to force out of the
treasury and into circulation by it's
paper representative the actual coin
which the people refused to take. The
time has now come to stop this costly
fooling. The silver certificates are re-
deemable specifically on their face In
silver dollars. Let them be so redeem
ed. The silver dollar is already a full
legal tender in the payment of debts.
If it were still being coined, so that
the aggregate volume of these dollars,
whose bullion value is so far below
their face, were increasing and likely
to expand indefinitely, they would GER
tainly depreciate. With the volume
limited, with coinage stopped, and with
no prospect of its resumption, we be-
lieve that the people Of the country
will accept and can use all the dollars
now coined to advantage in the small
transactions Of daily business life
If this plan were followed, the ques-
ton of redeeming silver certificates in
gold would not and could not arise
The treasury would be relieved from
the possibility of having to hold a re-
serve equal to the redemption of the
enormous bulk of silver and paper
based upon the silver now outstanding,
and the way to a sound and stable
currency system would be fairly open
ed. Moreover, as we have said already,
the substitution of silver coin for paper
money to a large extent would
accustom the people Of the East
to- It's use as freely as it is