The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1899-12-15
CURRENCY
THE TOPIC.
Financial Measure Up In the
House.
OVEN, fREET MADE OPENING Talk.

| diction-McClellanA Advised Gold Demo-
Gratis Against the Measure.
WASHINGTON, Dec. 12.-Mr. Over
street, in charge of the financial bill,
opened the debate in the house
| Representative Overstreet in opening,
said in part:
The present parity depends entirely upon
| auch declarations and guarantees, but its
| maintenance and enforcement rests with the
| Judgment and caprice of the secretary of the
| treasury who, by single order directing the
/ use of silver in the discharge of our obliga-
tions. may completely destroy the parity, and
| shift the standard to the metal so used. 1t
| seems far better to attempt proper regula
tion of the question by clear and permanent
| ST. u'e rather than depend upon occasional
| declarations by the government of its inten.
ton 1t is far better to end the matter by
public law, which shall be plain and urequivo-
| cal, rather than rely upon proposals of what
| may or shall be done at some future date or
| leeve so dangerous option within the con.
| troll of one man, whether he be the president
| Or his financial adviser
| The present standard of value in this coun;
try is gold, and has been so recognized in
practice for more than half century.
| The tremendous increaee of silver coin un'
| der the operation of the laws of 1873 and 1899
created u doubt as to the ability of the govern.
| ment to maintain the parity of all its money.
Prior to 1873, when the gold standard was
adopted. there had been issued by the govern
| ment only SO3l ,238 silver dollars. From Feb.
H. 1878, when the recoinage of the silver dol.
| lar was authorized, to Nov. 1, 1895. when such
coinage was discontinued. there was coined
by the government 4S2,357 1916 silver dollars
Upon this last date there was not a silver dol
lar in circulation whose face value equaled its
| intrinsic value. The difference between the
| intrinsic value and face value was u govern
| an aStablighn1 NV
sional act.
The ability Of the government to bear this
| burden was never questioned. The more
money obligation imposed by the law created
no serious embarrassment 1t was the prin
ciple involved coupled with the repeated eff
forts by a very considerable number of the
people of the country to establish absolute
free coinage of silver, which shook public
confidence and produced the fear that a
change of the monetary standard would sre.
suit.
II the legal standard today is the gold
standard under the act OF 1873, positive
statute to that effect can do no harm. If, on
the other hand, there is any reasonable doubt
it should be dispelled by statute plain and
clear in its terms.
| When certainty shall take the place of doubt,
and the integrity of our credit be as fixed as
the honor OF the nation; the national debt can
readily be refunded at lower interest rates,
and future loans negotiated with ease upon
|
velopment of American trade and its vast ex-
| pansion, bringing our people into close rela.
tions with the leading nations of the world,
makes it imperative that the standard of
value in which settlements are made shall be
the best known to the highest civilization,
and shall safely appeal to intelligent and sue.
, | cessful experience. Recent events shaped by
| causes beyond our control, bearing obliga-
tions which national honor requires shall be
courageously discharged, open new fields for
American craftsmanship. Channels of trade
| yet unknown to AmeIicBn enterprise, and
avenues of commerce yet to welcome
| American products will surely result.
Such conditions emphasize the necessity for a
standard of value which shall remain firm
throughout the vicissitudes of competitive
trade.
The proposition to allow national banks to
| issue circulation to the par value of the
, | bonds deposited for their security, is neither
new nor partisan. 1t has been recommended
| by four presidents and five secretaries of the
treasury, and bills containing such provision
have been introduced in congress- and sup.
| ported by members Of both political parties.
. | 1t is entirely consistent with the present
banking system. The same reasons which
Justify the issue of 50 per cent of the bonds,
will Justify an issue TO the par value of the
| bonds. -r
The only objection advanced l, aside from that
of dogmatic attack, generally upon banks is
: that it permits too large an increase of the
volume of circulation and threatens an intla-
ton. But it is unfair to compare the amount
, | possible under the proposed bill with the
. | amount of bank notes now in circulation. The
lack of profit upon bank note circulation, be-
cause of the tax, has reduced such circulation
| far below the amount ever expected, and such
| reduction can be creditably charged to con.
traction which was equally unexpected The
| proper comparison Is between the amount
possible under the present amendment. which
would be but lOper cent increase an amount
! which can be easily absorbed by the business
! of the country and utilized in as many differ
| ent money centres AS there are national banks.
| The repeal of the tax upon national bank
notes, and the substitution of tax upon
bank franchises, as measured by their capital
surplus and undivided profits, are proposed
in spirit OF fairness, and for a just distribu.
tion of the burden of the tax. The larger
banks will pay the tax in the same degree as
the smaller banks, while the amount of reve.
nue. will be practically unchanged.
In the course of his speech Mr.. Shat.
roth (Silverite, Colo.) interrupted to
ask if the bill would not result in con-
, tracing the currency to the extent of
the $3.50 900, 900 in silver impounded.
at would not" replied Mr.. Over
street, "because for every silver dollar
which goes into the treasury a gold
dollar will go out into circulation. 1"
Republican applause.[
Mr.. Maddox (Dem., Ga.) was the first
speaker in opposition to the bill. Re-
ferring to former Speaker Reeds New
York speech advising the immediate en-
actment of gold standacd legislation be-
fore some branch of the government got
away from the Republican party, he
said:
"rhe faithful understand that this
legislation must be enacted at once or
not at all" If gold was the "existing
standard as contended, it was so by
the unlawful usurpation of the executive
/ officers of officers of the treasury.
: The treasury, under the bill, he pre-
dicted, would be raided The bill
/ would convert every obligation of the
treasury into a gold obligation, and
would compel the government to sell
millions OF gold to the amount of 20 per
cent OF all the outstanding notes of
whatever character, He argued that
under the bill banks with $l,000,00C
capital, now required to deposit bonds