The Providence news. (Providence [R.I.]) 1891-1906, 1898-01-03
ON A PARITY
WITH GOLD.
The Monetary Commission
on Silver.
GOLD STANDARD UPHELD.
Would Stop the lssu. of Paper
Money Under the Tens.
REPORT JUST MADE PUBLIC.
REPORT JUST MADE PUBLIC.


authority OF the convention OF business
men held in Indianapolis last January
has just been made pubic. II retains
practically unchanged the existing me-
rallic money The gold standard or
which business has been done since 1879
Is of course. maintained. on the ground
. that the industrial interests demand
certainty as TO what the standard shall
be. For the ready employment OF labor,
factories and mines must be constantly
operated: and constant operation, In the
judgment OF business men, is impossible
so long as there is uncertainty as to the
s andard on which prices Of goods and
orders are based. To this end. II Is
urged that the United States should re-
move all uncertainty as TO the meaning
OF coin in it's Obligations, thereby saw
ing the taxpayer by the ability to bor-
row at a lower rate Of interest.
No altar mpt is made 10 remove silver
dollars, nor to change their legal-tender
quality; On the contrary a place is pro-
vided for them In the circulation by for
bidding the use Of any paper money
other than silver certificates in denom-
nations below $40. The silver currency,
which will be in the hands OF the people,
must be kept on a parity with gold. as
now provided by law, and this should
be done by requiring the treasurer To
give gold for a SILVER dollar on demand.
Consequently when II is known that a
silver dollar can be exchanged for gold
IL will circulate freely lin the form OF
certifcates), and our metallic money.
without being diminished, will be uni
fed on a certain basis. AS all this silver
will be needed TO meet the demands for
large exchange (when other paper below
$40 is retired), IL will not he presented
at the treasury for redemption. and
IL will create no strain on the gold re-
serves: but no more silver doEars should
be coined.
The commissioners contend that the
ten different kinds of money in use
create an anomalous and confusing sit
uation. Moreover. the whole fabric rests
on too slender a reserve of gold. 1t is
urged that the demand obligations of
the government should not be used as
money, because they may be, and have
been. presented for gold to the injury
grave doubts as to the standar on which
the business operations of the country
rest. Everything which. by experience.
creates uncertainty and hurts trade him
ders prosperity and should he removed.
Hence the fiscal affairs Of the treasury
relating to the receipts and disburse-
ments of public revenue should be en-
tirely separated from the monetary
functions dealing with the exchange and
redemption OF the currency BY es-
tablisbng separate division of issue
and redemption In the treasury, Il will
be impossible to take away funds set
aside for the protection Of our monetary
system and use them for current ex-.
pcnditures.
Above all n 10 regarded as dangerous
20 maintain the present practice OF using
government demand obligations as
money. our fathers never made any
thing full legal-tender. money excapt
gold and silver; but in the stress OF civil
war, confusing the fiscal ard monetary
functions of the state. forms of debt due
on demand were used as money not as
the result OF deliberation. but of emerg-
ency conditions. They were issued ex-
actly because there were no resources in
the treasury and so they deprecated.
drove out gold, furnished a fuctuating
standard, Increased the national debt
enormously, caused change In prices
whenever the credit Of the paper stan
dard huctuated, reduced the purchasing
power of wages. and by causing unex-
pected changes in the level OF prices
gave rise to extraordinary speculation.
Increased the sevFr!ty of commercial
crises, and placed the small producer
at disadvantage with the large pro-
ducer. For IL years (ls62-lS79) the gov
ernment paper was a falsi1ed promise,
and our standard was based on this lie.
Trade and industry became speculative
Men Of large wealth can take care OF
themselves; but men Of small means
should lie protected from the evils aris-
Ing from such uncertainty OF the stan
dard.
IL the demand obligations OF the gov
ernment are used as money. reserves
must slw1ys 6e kept on hand 20 redeem
them. They are not therefore n loan
without interest: and the expense of
keeping UP these reserves has made the
paper money very great burden 10
the taxpayers py an increase OF the pllO-
lie debt. These gold reserves ara nee
essary. unless the government permits
It's notes o. 60 20 protest. The mere
credit Of the United States behind It's
notes Is too vague thing. its power 10
tax Is too remote, TO provide cash IN
hand for instant use. So far az expense
IA concerned, this debt could have been
more easily borne by changing ID into
low interest bearing bonds.
The demand obligations OF the United
States were put forth because there were
no funds in the treasury TO redeem them.
The notes were only evidence that prop.
erty had been received and used up for
services or supplies OF public buildings
uo longer available assstsD The gov
ernment by the nature of the operation
DID not retain as the notes went out
any properly Immediately convertible
into coin with which 20 redeem its de
mand issues They Werr not a money
based ~ property. they were only a
debt on thf other hand. bank note
" never ISSUED fraud. of course. CT.
cluded) sxcsn, Tor consideration in ne