The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-12

ooIidFS- NHeH Thai point 10 leaCiCu
he is authorized to issue three per
cent. gold bonds in order to maintain
the gold reserve the bonds to be pay
able in one year at the option of the
government. With the fund thus pro-
vided, the secretary is required to main
tain the parity and equal value of
every dollar issued or coined by the
government; and whenever he deems
it necessary to maintain this parity,
he may exchange gold coin for any
other money issued or coined by the
United States.
This is practically gold redemption"
of all other forms OF money issued by
the government, including silver dollars
and silver certificates, although called
an exchange" While it is left discre-
tionary with the secretary whether he
shall make the exchange or not, it is
made mandatory upon him to use the
fund to preserve the parity, and there
is no other way provided than by the
exchange of gold for the other forms
of money. So that 1t may be regarded
as a mandatory direction to pay cut
gold whenever he considers It neces-
sary. That such secretary as Mr..
Foster or Mr.. Carlisle or Mr.. Gage
would always consider it necessary
is too self-evident to require any argu-
ment
Under mere declaration contained
in the act repeating the Sherman
law that 1t was the policy of the
United States to preserve the parity Of
the different coins, the treasury de-
partment responded to every demand
for gold upon the plea that failure to
do so would at once cause the other
forms of money to depreciate. thus de-
stroying the parity. And this without
any direction whatever to pay out gold.
AS q result the treasury was repeatedly
raided the gol<. reserve time and again
! depleted, and s262 100000 interest bear
ing bonds were issued to replenish that
| reserve. And this under law that
also declared it to be the policy Of the
| United States to continue to coin and
use silver as standard money. Can it
be doubted then that with law the
avowed purpose OF which Is to firmly
establish the country upon a gold basis,
with every pretense of favoring bimet-
allism abandoned secretary like
Gage, for example, would go even
greater lengths?
The effect Of this is to put the silver
dollar upon the same footing as a
greenback or a Sherman note and
some ssoo,ooo,oOo in silver coin is de-
! re ~ ~ re writ, or
redemption money, and is thrown into
the mass of secondary or redeemable
money, making just so much more OF
demand for gold IN seasons Of doubt
and distrust.
But even yet we have not reached
the worst feature of the bill. 1t further
provides that the notes and certificate ties
SO redeemed or exchanged-the bill uses
the word redeemed" in this connection
shall not be reissued except In eN'
change for an equivalent amount Of the
coin in which they were redeemed. This
simply means gold coin, for there would
in fact be no other kind of redemption
The effect would be q sharp contrac.
ton of the money supply whenever FOL
any cause there was an unusual de.
mand for gold. The yellow meta
would, as a rule. only be needed for ex
port, and it stands to reason that in iht
face of heavy gold shipments leading
to a run upon the treasury there woult
not be many people f1ocking to the
treasury with gold to exchange for thu
paper that had been locked up. Thus
If 500 100000 in gold We're shipped
abroad, a like amount of paper would
be withdrawn. and the country's effec
tive money supply would be reduced
5000, 600 900.
!. Nor should we in fairness stop here
for in the meantime the withdrawal o
800, 600 in gold from the treasur,
would necessarily deplete the reserve
Then comes a bond issue with fresl
: i load of interest. calling for increased
| taxation, and this very act in itsel
draws another hundred millions from
, other uses and puts that also into th
, treasury. The extent to which thi
would create distrust lower prices, an
paralyze business must be left largel.
to conjecture.
1t is morally certain that very littl
Of the money impounded in the manne
named would ever get back into cir
culation. And it is not the purpose
the bill that it should. Second only 7
the establishment of the gold standard
beyond all question, the trainers of tn
bill have in view the retirement of
government circulating notes, and
complete substitution Of bank paper. I
directly and openly propose the retire
n1ent of the greenbacks and other form
of government paper would be yer
; unpopular, and even dangerous thin
to do. So they intend to accomplis
by indirection what they fear to at
tempt openly. They know that If the
can once get this paper into the issu
and redemption fund OF the treasur
the most of it will remain there, n
matter how badly it may be needed !!
l. u