The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-08
The Bankers and the Gold Standard.

ne Blankets ana the Gold Standard.
The American Bankers Association, at its
annual meeting In Cleveland, O., passed
on Wednesday, unanimously and without
debate, the following resolution:
The bankers Of the United States most earnestly
recommend that the Congress OF the United States
at its next session enact law TO more firmly and
uncquivocally establish the gold standard in this
country by providing that the gold dollar which
under the existing law is the unit of value shall be
tho standard and OF all values in tho United
States: that oil the obligations of the Government
and all paper money including circulating notes of
national banks. shall be redeemed in gold COIN and
that the legiender notes the United States whom
paid into the Treasury shall no. be reissued except
upon the deposit Of an equiv alent amount OF gold
COIN
The sentiment which inspired the pas
sage OF this resolution Ia one shared by
every honest citizen. That the single gold
standard, which was practically established
by law in 1894, and formally in 1879, must
| and shall be maintained against that OF
silver at the ratio OF 16 to 1, or at any
other ratio which would make the silver
dollar OF less value than the gold dollar, is
required as much by the laws OF morality
as by the dictates OF good policy. II the
United States is to keep its place among
commercial nations, it's Government and
its citizens must fulfil their contracts in
spirit and in letter, and pay their creditors,
il not in actual gold coin, then in money
when creditors will accept as equivalent
to gold.
In their expression OF this sentiment,
! however, the bankers have been very I'M
fortunate. The Trainer OF their resolution
was evidently unacquainted with the facts,
| and unskilful in tho use OF the English
language. The gold dollar Is already
firmly and unequivocally" established by
law as the unit OF value, and no act Of Con-
gross is needed to make it more 80. Declar-
ing that this unit OF value shall also be
The standard and measure OF all values in
the United States" would be declaring a
truism. A unit Of value Is, by its very
terms, standard and measure OF values,
and there is no need Of saying 80, any
more than there is of saying that the unit
OF weight shall also be the standard and
measure Of all weights.
The resolution Is ambiguous in calling for
an act of Congress providing that the "obli-
cations" OF the Government shall be re-
deemed in gold. Probably the bankers
meant by obligations" only the demand
notes and bonded debt OF tho Government.
and by redeemed" their payment. but
outside OF Wall street, obligations" has a
much wider Specification, embracing all the
debts due from the Government to it's credi-
tors, and "redeeming" applies only to
promises to pay on demand. Therefore,
an act which should follow the exact
phraseology Of the resolution would fail OF
its intended effect, because OF the doubtful
ness OF Its meaning.
Tho resolution is defective, also, in de-
handing payment in gold only OF "the
obligations OF the Government and all
paper money, including the circulating
notes of national banks" This leaves out,
not only the payment of bank deposits, but
also tho fu!ii!mCnt OF contracts made by
other corporations and by natural persons.
The bankers. certainly cannot have i'll
tended 10 except these obligations from
paymen. in gold. and to contine their
demand for such payment to Government
bonds, Government notes. and bank notes;
and yet they have, in words done SO.
What the bankers really desire Ia, we pre-
sumo, though they do not say it, legislation
forbdding the payment OF interest on Gov
eminent bonds and the redemption OF Gov
ernmcnt notes in the standard silver dollars
which are, now, legal tender, except when
otherwise expressly stipulated in the con-
tract; and which are receivable by the Gov
eminent in payment Of all customs. taxes
and public dues. They fear that in the
event Of an election of silveritc President,
even with Congress opposed to the silver
standard, n Secretary Of tho Treasury
might he appointed who would interpret
the word "coin. in which the Government
bonds are expressly payable, az embracing
the standard silver dollars, and would of,
'"Hm to ting b"ndhoI4ora Ms well as to the