The Forrest City times., 1897-05-21
BRYAN ON IhE BONDS.
The Free silver Champion Reptile. &c
Chairman DfngIey.

ham y. Bryan reviews thesta ~ me ntS OF
Chairman Dingley, of the WAYS and
means committee. made IN a ate inter
view for the Journal. The following is
Mr.. Bryan's letter in its entirety:
Chairman DingIey. OF inc ways. AMI
means committee, IN his Interview pre-
pared for the Journal. reiterstes the charge
frequently made by the republicans dur
ing the past four years-namely, that the
bonds were issued because OF a deficit I'm
the revenues. and he holds out the hope
that the drain upon the gold reserve will
Geese when the deficit ceases
II do not believe that his theory will ex-
plain the drain upon the gold reserve. nor
do l think that his hopes are well found
ed. While 1t is true that q large part OF
the money received from the sale OF the
bonds was used In making good the deficit
In the revenues. yet at no time did the
deficit cause the issue of bonds.
Instead of being an injury. the deficit was
during that period benefit. because the
money which accumulated from the sale
OF bonds could not have returned into the
channels OF commerce but for the deficit
II. as is probable. the gold would have
been drawn out, even IL the revenues of the
government had equalled its expenses. then
that money would have been held la the
treasury. and business would have been
crippled more than 1t was.
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 be
tween the revenues and the Withdrawals.
If gold is needed for export il 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 al a time when for the first time in
several years. the revenues exceeded the
expenditures.
THE press dispatches did not attribute
the late Withdrawals 10 a deficit. nor did
they attribute them to loss of confidence.
The reason given was that a new demand
for gold had sprung up in Japan and
Austria
IF gold Is desired for boarding. or for
the purpose of forcing an issue of bonds,
II will be withdrawn. whether there is
surplus or a deficit. unless the secretary
protects the government by exercising his
option and redeeming in silver. When
falling prices make ordinary loans I'M
safe and ordinary investments unprofit-
able the holders OF idle capital are apt to
advocate an issue of bonds for the pur-
pose OF securing safe investment. and
when the desire for bonds becomes strong
enough they can draw gold from the treas
ury by presenting greenbacks and treas
ury notes and then use the gold to pur-
chase the bonds issued
That such plan has been contemplated
/ ny view 1OTh lfdHCleTS cannot De QOuDIeG.
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 greenbacks retired should system
atically present them for redemption until
/ they were all locked up in the treasury
That the New York financicrs have used
| their power TO discredit 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
greenbacks for redemption. So long as
/ the secretary of the treasury surrenders
to the holders Of government paper the
| right to choose the coin I'm which payment
| is to be made. so long will IL be possible
| for the financiers 10 present either treasury
notes or greenbacks and draw out the gold.
| Mr.. Dfngley is in error In supposing
that the redemption of $780, 900 Of green
backs or treasury notes would make such
Al 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 s500O0.000 of these
notes locked up. and yet gold has been
withdrawn.
There has been a well-founded sus-
picion that much of the gold drawn out
by the presentation of greebacks and treas
ury notes was drawn out for the purpose
| of forcing a retirement of all government
paper. If the financiers conclude to bring
their influence TO bear upon the present adj
ministration 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. eco e.
IF 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 one
per cent. to quarter OF one per cent.
they may become interested In having more
bonds issued TO furnish basis for bank
notes. III they do, the process Is very
easy. All they have to do is to present
| greenbacks and treasury notes and draw
| down the gold reserve, then raise the alarm
and proclaim that the credit is In danger.
| IF the secretary of the treasury yields.
as there Is no reason to doubt he would,
| they could buy the bonds with the gold
| drawn oct, and then issue notes upon the
| bonds purchased. BY this simple process
the banks would be able to secure a safe
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 a more ad-
vantageous transaction than that. Usual
ly man can either eat his cake or keep
II; II Is left to the national banker to both
eat his cake and keep 1t. While others
must be content to use their money. or II
| 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 gold
may be withdrawn expressly for the pur-
| pose of purchasing bonds. The records Of
| the treasury department show that $4,000.
COO were withdrawn for the purpose OF pay
| ing for the first $4,000. GOO OF bonds issued,
and the proportion has sometimes been
! greater than that. No one except gold
| standard financer has been able to see
1 the wisdom of a policy whereby bonds
are issued to buy gold and then gold fur
nished to the purchasers to be returned tc
the treasury In exchange for the bonds
| IF the Dingley BILL as finally passed
yields considerable surplus over and
| above the expenditures of the government
that surplus can be converted into green
backs. and the greenbacks withheld from
circulation. but If the surplus is used to
purchase and retire government bonds. the
greenbacks will go into circulation again
In other words, the greenbacks can only