Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1899-09-21

Eress Meet the Issue?
Harper's Weekly. in the course OF an |
editorial urging the necessity OF legisla-
tion to make the gold standard secure,
and pointing out the danger that might
arise from the election to the Fresi-
dency, under existing conditions, OF
man like Bryan, who would advocate
the free coinage OF silver, says:
1T Is only necessary to recall the
raids on the Treasury begun early in
1893. In 1879 the gold reserve was
| s114, 600, 600; In April, 1888, it had
fallen to S97, 900. 900; in February,
1894, it was reduced to $50, 900, Goa
loss OF $50, coo, 600 In less than year.
The President then sold $50, 900, 600 OF
bonds, under the law of 1875, realizing
nearly s59, QUO, 600. BY reason OF this
sale, the reserve stood, in march, 1894,
at S107, 900, 600; but on the Both of
June, FIVE months after the sale, it was
! again down to $50, 600, 900. On the 24th
| OF November, 1894, the reserve was
q little less than $1,000, COO, and
$50. 600, 600 lnore of bonds were sold,
realizing about S5s, 100000. This in
creased the fund so that on December
4th it was ell, 100000. Still the raids
continued. and in little more than
two months moro than $50, 000, 600 of
gold had been withdrawn from the
Treasury, SO that in February. 1888,
the reserve had fallen to 81, GOO, GOO.
Nearly S43, 000, 600 had been withdrawn
in january alone. During the latter
month, the President had asked Con-
gress to give to the Secretary OF the
Treasury authority to sell lowrate gold
bonds, in order that he might always
have the power to overcome the dill
culty-in truth. the grant OF power
coupled with ono other act would have
been sufficient and lasting remedy;
but Congress refused, and the agree
ment was made for the exchange of
bonds for gold, in pursuance OF which
syndicate of bankers protected the
Treasury from further raids for six
months. The result was that the re-
serve was saved, the currency of the
country remained practically, as it is
theoretically, on gold basis; but the
victory was won at an enormous cost
to business interests, and by an ad-
dition of sl62, 600, 600 to the public
, debt.
1.-THE conditions which created the
doubt as to our currency system, and
therefore the assault on the Treasury
and the ranic, were legislative con
, ditiops. The er-purchase acts of
1890. the falling Off OF revenues due to
legislation, and the fears of still
: further unsound money legislation were
the panic-breeders Of 1886 We may
assume that the country is now reason
ably safe from the menace of fiat
money legislation, but it may still
s be at the mercy of President
who believes in the free coinage Of
silver 1t should never be forgotten
= that the members of Congress who in
/, 1896 followed the banner of Bryan and
l the Chicago platform, and who con,
tinue in that faith and company, did
their utmost to fix, and even to in
; crease. the doubts which were ex,
, pressed in the panic. They objected
: to the sale OF bonds under the act o.
9 1875, on the ground that the President
2 had not the authority which he ant
!. the Secretary OF the Treasury ASSERTED
= and exercised. They opposed th,
{ securing of gold in this manner, ant
authorize the Issue of other bon d.
Their hostility to the maintenance o
the gold reserve was so intense tina
they refused to save the government
more than SIG, 000,000 in interest
which might have been done il Con
eress had assented to Mr.. Cleveland
4 request to make the last bonds ISSUED
2 payable in gold. 1t is clear that j
u Mr.. Bryan had been President frou
: 1898 to 1886, the country would hav
: been on silver basis, where he want
= to place 1t now.
y lin the absence OF Legislative
% menace, how may President excit
!. dangerous doubts and induced mi,
y on the Treasury gold? 1t is true tina
~ in law the standard of value is gold
= The fourteenth section OF the act o
~ 1873 declared the unit of value to b
y the gold dollar. Nevertheless, tn
y bonds of the United States and tn
~ interest on them are payable i
- Coin" and not only do the silye
: y in silver, Notwithstanding that silve
!, was not coined when tho bonds wer
- authorized, but Congress has, in recen
y years, refused to declare that the wor
~ coin in this connection means gold
~ In February, 1895, Senator Hill intro
~ duced into the Senate resolution re
!. quiring the Secretary of the Treasur
~ to pay out gold for coin obligation
~ when the market price of coined siyc
y, fell below that OF gold Senator Teller
~ in opposing the resolution, said: 9Th
49, government of the United States BIZ
IL no obligation upon it TO pay its bono
a. in gold any more than in silver TIL
~ is the faith Of the silver men, 1t
~ true that the law pledges the govern
"a ment ito maintain the two metals @
- parity with each other" but Brya
y, and his followers hold, and the a,
IN read literally sustains them, that IL
IA choice of metals, in paying, rests wit
~ the Secretary of the Treasury. 1t
Ia for him to determine what is necessar
to be done, in this instance, to pr,
ia serve the parity Of the metals. Il
IL may pay out silver, in order to make
nj as good as gold. Mr.. Carlisle and NJ
'nr Gage have thought it incumbent upc
them to pay out the metal demande
~ by the holder of bonds or greenbacl
r., OF certificates or Treasury notes. 81
.as the silver dollars and the silver certii
on Gates are legal tender, and, moreove
aa. are coin and warehouse receipts Il
70 coin. Does anyone doubt that Bryt
bo Secretary of the Treasury would insi
on paying silver for silver certificat
,.t and Treasury notes, and is there al
10 reasonable doubt that it would requi
NO the Intervention of the courts to pr
nj vent him from raying out silver
cd the interest on the bonded debt, al
in for the principal when it became du
at A panic would follow, compared wi
of which that of 1896 might be triflin
for the credit of the government won
mt be at the mercy of the Executive
his strong defence at the former perio
no but then hostile.
an 1T rests, then, with the Republics