The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-12

IN 1870 was the greatest in history, anu cA
ceeded the product OF 1897 by SfSole'ooo ana
or 1876 by GOO The product OF goiu
from mines in the United States IN 1913 was
the greatest In the history Of the world ex,
ceedlng the product of 1897 by sd,lOO'oog ana
of 1896 by $ll.375,0O0 The output or sill
yer has varied in different years, while the
product of gold has steadily increased an
nually since 1880. Notwithstanding the
fluctuations in the product or silver It's
value per ounce has had uniform tend
ency downward, declining to 80 cents per
ounce in 1898, its lowest register.
IF. under all these conditions, the Unlted
States shall clearly by law adopt the goid
standard, it will experience even less fric-
ton than resulted from the resumption Oh
specie payment. The government Is most
fortunate in being able TO act in sucn an
important matter under such Favorable cir
cumstances.
MAINTENANCE OF THE STANDARD.
But the gold standard is not to be
adopted by a mere definition of the unit
of value. It's full. complete and harmon
ious operation must be provided for. the
definition Of the unit of value should De
followed by a provision for the full pay
ment of government obligations in the
standard. The recognition of the standard
is reflected in the method pursued by the
government in the payment of its oblga-
tons. Mere statutory declaration would
be idle. unless the conduct Of the Nation
towards its own debts were consistent with
the statute. Law and conduct both must
be free from ambiguity. National honor
and national credit are closely allied. In
the discharge of its debts the government
has always followed the practice of max
ing payment in money equivalent TO the
best money known at the time. Gold has
been the money received by the govern
ment when our credit has been pledged
and the discharge of such debts in money
of less value would be reputation.
THE provision will create no change in
the practice which the government has uni
versally observed. Where the custom has
so long prevailed to pay out gold for the
greenback and treasury note, as well as
for the Understanding obligations, the
plain provision by statute in perfect har-
mony with such custom, will strengthen
the credit of the government without Ell
fecting the slightest change in the national
policy. The creation of a division of the
treasury where this practice may be OPP
erative, separate from the fiscal transac-
tionS of the government is in perfect ac-
cord with good business principles 1t pro-
vides place where, figuratively and prac-
tically, the counter of the government
may be found with an officer ready and
fully authorized to discharge all OF the
duties deVolVing upon the government Tor
the issue and redemption OF its obligations
Such division of the treasury Will hold, In
addition to the funds specifically dedicated
an amount of gold equal to % per cent. of
the amount, both of United States notes
and treasury notes, outstanding, as a re-
serve fund to meet any demand for the
redemption OF greenbackS and treasury
notes when presented.
There is now specific law authoriz-
ing any particular sum to be held as
reserve to meet the redemption of the
greenbacks unless it is contained in the
provision of the law relating TO the issue
of gold certificates directing that no more
gold certificates shall be issued whenever
the gold in the treasury falls below $780,
0OO,O Such practice should be legalized
and based upon a specific statute. A re-
serve fund of one-fourth of such notes out
standing is deemed sufficient to guard
against any sudden demand of holders for
the redemption OF these obligations Es-
pecially is il thought that such sum is
sufficient in view of the provision wherein
it is stipulated that all notes and cer-
tifcates when redeemed or exchanged shall
be held and not be withdrawn nor dis
bursed except in exchange for an equiva-
lent amount of the coin in which said notes
or certificates were redeemed or ex-
changed.
section be referred to such division of the
treasury, together with the respective
amounts, on the 30th day of September,
1885, follow:
Gold coin and bullion represented
by outstanding gold certificates. $135, sol, 119
United States notes represented
by outstanding currency certifi-
Gates ..-..-............--.-..... 16,lOOWh
Silver dollars represented by out
standing silver certificates. 405, 191, 54
Silver bullion represented by out
standing treasury notes. 81, 167, ESQ
Gold coin and bullion, equal to
one-fourth of the United States
notes ($346. 6S1, 016) and treasury
notes (SSl, 49, S0, outstanding. 109, 462, OLA
1.-THE first four items enumerate the
special deposits dedicated to specific pay
ments. AS these obligations are met the
deposits are CORRESPONDENCE reduced.
I'm the absence of law providing pro-
tec.iOn to the gold reserve 1t is always
subject to encroachment in expenditures
to meet the general expenses of the gov
eminent. Whenever such encroachment
seems probable a fear has arisen that the
government may not be able to meet it's
demand obligations, and a run upon the
reserve for the redemption of the demand
notes has followed. This situation is re-
sponsible for the so-called endless chain"
BY separating the reserve fund from the
general fund and prohibiting it's use ex-
cept for redemption of United States notes
and treasury notes the dangers to which
ii has been so greatly subjected will be
removed. These demand notes are being
redeemed in gold now and always have
been, and no additional burden is imposed
upon the government. 1t is sought to sim
plify and legalize the practice and create
a division in the treasury where the whole
business of issuing and redeeming notes
may be transacted, and to establish COM
plete confidence in the redemption of our
demand obligations.
INTERCHANGEABLE
'If the absolute and unquestioned parity
OF all our money shall be truly and honestly
maintained proper provision for their in
terchangeabilty should be made. The pro-
vision for the interchangeabilty of the
money of the government has greatly
frightened some people. The thought that
any of our money might be taken to the
counter Of the government and on presen-
tation be exchanged for gold coin has de-
veloped in many honest minds a serious
doubt OF the ability of the government to
discharge such function. But how else is
this full parity to be maintained? In what
other manner is it possible TO measure the
value of money, except by its comparison
with or measurement by the standard Of
value? No difficulty arises when a silver
certificate Is presented to the government
in exchange for silver dollars, or of a gold
certificate for gold dollars, or of a currency
certificate for greenbacks. But these are
mere certificates of deposit, or warehouse
receipts, II you please, for actual property
or commodity which is specifically on de-
post at the national treasury, especially
and solely dedicated to the payment of the
certificates outstanding, for the payment of
which they are pledged. No trouble has
existed in ordinary times for the exchange
of a greenback for gold, and it was only
because of the reissue of the greenback,
creating a so-called endless chain that
the government was at all embarrassed in
the redemption of its demand obligations
The provision of the bill under considera-
top, whereby such notes when once re-
deemed, shall remain undisturbed In the