Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-11
Representative 0verstreet on the Cur
renGy Bill.
MAINTENANCE OF GOLD STANDARD
Development Of the Nations Mon
etary System.
EXTENDING BANK ISSUES

The opening speech in the debate of the
financial bill in the House today was made
by Mr.. Overstreet of Indiana. who is the
author of the report the bill.
This country he said. presents the
anomalous situation of being the absolute
and urChaIlenged leader in almost every
field of advanced thought, whether in
science or In literature: certainly the most
advanced in material development and the
control IF trade; by far the superior in
manufactures and growth of markets. and
Yet it is the field of greatest controversy
upon the subject Of standard of values and
the proper media Of exchange.
NO nation has devoted more time to
public discussion and legislative consdera-
ton Of the question of finance than the
United States The past twenty-five years
has witnessed the greatest interest in the
subject of any similar period in the history
Of the nation. and during the past four
days every possible phase of the subject
has been presented. Continued discussion
very naturally develops varied proposals
for the remedy of actual and fanCied evils,
and the time seems ripe for an honest and
careful effort for the fair solution of the
problems. free from unnecessary criticism
and attack upon the propositions of others
Every Dollar sound and InIuestiOned
Notwithstanding the fact that the
called money question continues in great
interest among our people, and notwith-
standing there have been occasions when
serious doubt cIouded the situation and pro-
duced grave fears lest the entire fabric of
our money system might be seriously
shaken. yet it is TO the great credit of the
government that every dollar of our money
I'm circulation is absolutely sound and
questioned Throughout the entire time OF
tTnublouS discussion and debate, and pc
rlGdS when public confidence had well-nigh
disappeared, and panics produced serious
dangers. as well as in the periods of great
a~1-r 1fl11E
money has been at parity with the best
collar in circulation.
This condition has led many people 10
the erroneous belief that there was no need
for legislation. and that the best that the
government could DO would be to let the sub
ject alone. Such people not familiar with
the frequent pledges of the government to
maintain the parity of our money, declaring
by congressional acts the honest purposes
of the government to faithfully and surely
guarantee the full parity Of all money in
Circulation The present parity depends
entirely upon such declaration and guar
autee. but its maintenance and enforce
nlents rests with the Judgment or caprice
Of the Secretary Of the Treasury, VINO. by
q single order direC ting the use of silver in
the discharge Of our obligations. may CON-
Pletely destroy the parity and fix the stand
ard Of the metal so used 1t seems far bet
ter tl attempt a proper regulation of the
question by a clear and permanent statute
rather than depend upon occasional declar-
auonS by the government Of its intentions.
1t Is far better to end the matter by a
public law which shall b.. plain and un-
eGuivoCal, rather than rely upon proposals
of what may shall be done at some flu
ture date, leave so dangerous an option
within the control of one man, whether he
be President or his financial adviser.
The Legal Tender Quality.
Mr.. Overstreet briefly outlined the his
tory of our money. and, after enumerating
the kinds Of money. said that the legal ten
der quality added no value to money, but
merely made provision whereby debts
might be discharged by the tender of spe-
cific kinds of money. which. being good.
the creditor must accept. This, he said.
was for convenience and to avoid embar-
raSsment which might otherwise be caused
by caprCiOuS creditors or which a capri
cious debtor might cause by making pay
ment in a sort Of money which would be
inconvenient to the creditor.
Il do not deny" he said, but that there
are those who claim that legal tender adds
value. nor that governments have repeated
ly undertaken 10 supply 4 deficiency in
money by giving it the legal tender quality
and attempting to force il into circulation.
The universal and absolute failure Of all
such efforts is sufficient evidence that this
quality is not quality of value. There Is
not a single instance in the history OF
finance where the legal tender quality
added To a money has enabled ii to Circu-
late at greater value than its instrinsic
value, where it does not possess equally
the pledge and faith of the government for
its full redemption. The history of govern
ment efforts to force legal tender money
into circulation irrespective Of its intrinsic
value and without The government pledge
IS record Of failure without a single ex-
ception- All the various kinds of money
in the United States are based upon a com
mon standard of value. in which each can
be measured The present standard of
value in this country is gold, and has been
50 recognized in practice for more than
half century
4 Common Measure of Value.
He said that money was medium of ex-
cha md hat yEE bpr
ent varieties of money there must be a
common measure Of value. This measure
he said. has always been a common meas
ure. whether controlled by statute or by
the laws of trade, and that it has been only
when efforts have been made TO control by
statute in way different from the methods
pursued in common trade that confusion
arose There could be no proper and valid
exchange he said. unless the tool of meas
urement regulating exchange was equally
acceptable TO both parties.
He SAID that while the question of con-
venirnce. human needs and desire might
enter into the question, the basic principle
of exchange was value. and that the stand
ard by which values were measured must
itself contain the element Of value Firm
ness stability and constancy are character
fSticS he said which any standard must
possess To meet the demands Of universal
honest trade. The money measure re-
uuired these qualities he said. as much
The measures of weight and dimension. As
there could be but one standard of measure
al i time. There could also be but one stand
ard Of value.
II there We're two metals used as the
standard each possessing characteristics
essential TO true nlra Surement there would
be stin in effect. but one measurement.
what Determines yaIue.
value" he said. lis determined by such
n multitude Of circumstances. bearing such
crmplex relations to each other, influenced
by supply and demand. utility. adaptable
fly. human desire and other causes with
out number that exchanges of property
can be easily effected only by the COM
mon us. of variety Of media of exchange.
each representing accurately the units oil
value As measured by the standard into
which il can be converted on demand.
Voluntary and universal exchange in cop
pers uickeIs silver and gold. bank notes.
gr.enbacks and certificates mark the true
test of IA standard into which each can be
converted with ease Law does not create
this condition 1t merely recognizes IT.