Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1899-12-12
CURRENCY TIE TOPIC.
Financial Measure Up In the
House.
OvERSTREET MADE OPENING TALK.

Maddox and he Armond Attacked the
Biii-DolIivor Referred to Bryan's Pre-
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:
Inc present parity depends entirely upon
huch declarations and guarantees, but its
maintenance and enforcement rests with the
Judgment and caprice Of the secretary OF the
treasury who, by II 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 80 used. 1t
seems far better to attempt u proper regula
| non OF the question by clear and permanent
| stt u'e rather than depend upon occasional
declarations by the government Of It's inten'
| ton 1t Is far bettor to end the matter by a
public law. which shall be plain and unequivo.
cal, rather than rely upon proposals of what
may or shall be done ut some future date, or
ieove so dangerous an option within the con
trol OF one man, whether he be the president
or his financial adviser.
The present standard of value in this counI
I
| practice for more than half u century.
| The tremendous increaee Of silver coin un
| der the operation OF the laws of 1873 AMI ls9)
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 S,03l,23s silver dollars. From Feb.
| 10, 1873, when the rocoinnge Of the silver dol
| lar was authorized, to Nov. !, 1895. when such
coinage was discontinued. there was coined
| by the government 43!,357,376 silver dollars,
| Upon this last date there was not u silver dol.
lar in circulation whose face value equaled its
intrinsic value. The difference between the
intrinsic value and face value was u govern
ment obligation, 10 established by congress
| 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 ef.
forts by n very considerable number Of the
people Of tho country to establsh absolute
free coinage of silver, which shook public
confidence and produced the fear that n
change OF the monetary standard would re-
| suit.
| II the legal standard today Is the gold
| standard, under the act of 1873. positive
statute to that effect can do no harm H. on
the other hand, there ia any reasonable doubt
1t 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 bo refunded ut lower interest rates,
and future loans negotiated with ease upon
better terms than ever before. Tho rapid de-
velopment Of American trade and Its vast OK
| pansion, bringing our people into close rola.
tions with the leading nations OF the world,
makes 1t imperative that the standard Of
| value In which settlements arc 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
eourageously discharged. open new fields for
American statesmanship. Channels Of trade
| yet unknown to AmeIicun 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 recommen ndetl
| 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
| II Is entirely consistent with tho present
banking system. The same reasons which
| Justify the issue Of % per cent Of the bonds
will Justify an issue to the par value Of the
| bonds,
| The only objection advance |, aside from that
| OF dogmhtic attack, generally, upon banks, IL
that 1t permits too large an increase OF the
| volume Of circulation and threatens AN infia.
| ton. But II 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 hns reduced such circulation,
| far below the amount ever expected. and such
reduction oan be creditably charged to u con.
| traction which was equally unexpected. The
| proper comparison IL between the amount
| possible under the present amendment. which
| would be but II lOpor cent Increase, an amount
which can be oasiiy absorbed by the business
| Of the country and utilized In as many differ.
| ent money centres ~ there are national banks.
| The repeal OF tho tax upon national bank
notes, and tho substitution of u tax upon
bank franchises, as measured by their capital,
surplus and undivided profits. arc proposed
| In n spirit OF fairness, and for u Just dstribu.
tion of tho burden Of the tax. Tho larger
banks Will pay tho tax In tho same degree as
tho smaller banks, while tho amount Of reyo.
nuo will be practically unchanged.
In tho course Of his speech Mr.. Shat
roth (Silverite, Colo.) interrupted to
ask if the bill would not result in con-
the $3.50, ,0O0, 900 in silver impOunded.
at would not" replied Mr.. over
street, "becauso for every silver dollar
which goes into the treasury q gold
dollar will 30 ont into circulation. "
| 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-.
nctmont OF gold standacd legislation be-
fore some branch of the government got
away from tho Republican party, he
said:
"rhe faithful understand that this
legislation must bo enacted at once or
not at ALL" II 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 tho bill, he pro.
dicted, would be raided. The bill
would convert every obligation of the
treasury into u gold obligation, and
would compel the government to sell
millions of gold TO the amount of 70 per
cont Of all the outstanding notes of
whatever character. He argued that
under the bill banks with 81 ,OOO, 900
capital, now required to deposit bonds
equal 10 third OF their capital in the
treasury We're required to deposit only
e5O,0 III bonds, enabling them to con.
tract Or expand the currency at will.
He then assallod Republican advocates
of tho gold standard for apostasy and
particularly attacked Mcssrs Hepburn
tlowO Dingley tMaine) and Grosyenor
(Ohio) who he said advocated silver
coinage by intentional agreement liz