The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-10
The Provision I'm Question Defended
by an Eminent Authority ON
Financial Matters.
SAYS ALL MONEY MUST BE GOOD
AND THAT TO IGNORE SILVER DOL
LARS WOULD INVITE SUSPICION.
Gage Opposed to the Section that Pro-
hfbits Issuance Of silver Certin-
Gates Above Ten Dollars.

Speci~' 20 the Indianapolis Journal.
w tINGTON, Dec. 9.-Frlends OF mon
ct, -islation have been disturbed by
su & defec. in the House caucus meas
ur aich might imperiI its passage The
criticism is directed against the clause
! which provides for the exchange OF silver
dollars by the government for gold. The
criticism is that this provision places an
additional burden of something like $6oo.ooo,-
COO on the gold reserve and creates another
endless chain In substitution for the end
less chain which is stopped in part by the
impounding OF greenbacks under the guise
CT a special reserve fund OF gold. The.sug-
gestion at first thought was somewhat ter
rifying and caused great uneasiness among
the friends of monetary reform. who feared
that the caucus committee had been en-
trapped into an indiscretion.
The highest authorities on national
finances have been asked their opinion as
to the force of the objection raised against
the bill on this point. They hold that IL
has no Iorce, and that the provision will
strengthen the governments position with
cut In any way endangering the treasury
or tending to create an endless chain which
might reduce the gold reserve and compel
continuous issues Of government bonds TO
protect. as some feared might be the case.
A FINANCIER'S VIEWS.
Here is the view expressed by a very
eminent authority on finance: I'm the
| maintenance of a parity between two or
more kinds Of money. two Things are neces-
sary-receiving and paying. The law pro-
vides that customs duties may be paid in
r.. H. ..rsf
might do to discriminate against the money
which it receives in payment of the taxes
or customs duties would at once cast sus-
picion on that money. The government
might refuse to exchange gold for silver at
the treasury, but there is no way open for
its rejection at the other end. The conse-
quences would be that the creditors of the
government would make their payments in
the kind of money Disseminated against.
but which is. nevertheless, made legal
tender by law in payment OF such taxes
and duties. This would create embar-
RAISING situation. AS a matter OF practical
finances, the government, IN maintaining
the parity between its different kinds OF
money In circu.aIon, must make every
thing interchangeable. 1t cannot discrimi-
nate against one kind in favor OF any other
kind. The obligation rests on the govern
ment to-day to meet its obligations I'm
gold, In whatever shape they may be pre-
sented. While the government occupies
that position, there can be no discrimina-
ton against any kind Of money. All must
be the best and. therefore. as good as gold.
ITO make silver dollars redeemable in
gold by statute provision adds nothing
whatever TO the burden against the gold
reserve but will tend 10 insure confidence
in the high standard OF every dollar OF all
kinds of money in circulation In the United
States. 1t removes all temptation TO dis
criminate against any kind OF money. or
medium Of exchange. and Is assurance by
the Iaw-making powers OF the land that
one kind shall at all times be as good as
another. This removes every incentive for
the presentation OF silver at the treasury In
demand for goIu. 1t is only when there Is
a suspicion as to the value OF money, or
that the government may not consider one
kind as good another. that there can be
danger Of a treasury raid. II is. therefore.
just as necessary for Congress to remove
uoubt as to the value of silver dollars in
circulation as money il is for Congress
to put the word gold in the statutes. Such
by the government In IIs own credit
WOULD INVITE SUSPICION.
LET it be known that debtor is afraid
TO assume entire responsibility for every
dollar of Indebtedness or OF obligations
upon which he may be indorsing, that
minute he invites suspicion. The govern
ment stands In precisely the same posi-
ton. A failure on the part OF Congress
to provide for the interchangeability. OF
gold and silver by specifically occurring the
treasury to pay gold dollars in exchange
for silver dollars would be an admission
that possibly the silver money IL has issued
might not be good a gold money, and
would be a direct discrimination against
silver. That very omission might precipi-
tate a raid upon the treasury. such as IL
apprehended by those who criticise the pro-
vision in the bill TO which attention Is d.
rected. The silverites cannot find a logical
objection to the measure on the ground
suggested. for upon their own line OF argu-
ment added value Is impaired 10 a coin
which they insist the government is per-
sistently discriminating against"
There is a provision in the House caucus
bill, however. which will be objected TO bv
the secretary OF the treasury. IL is a mat
ter of administrative detail only. TO all an
pearances. yet as a part or the law n
would be source OF endless annoyance
and embarrassment 20 the treasury. Al
fusion is made 10 that section which pro-
hIbits the Department OF the Treasurv
from issuing silver certificates OF a denon-
ination above $40. The practical operation
OF such law would be TO pile Up large
quantities OF silver certificates OF a sman