The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1899-12-13
CURRENCY THE TOPIC.
Financial Measure Up In the
House.
OvERSTREET MADE OPENING TALK.

Gratis Against tue measure,
WASHINGTON, Dec. 12.-Mr. Over.
street, in charge of the financial bill,
opened the debate in the house
Representative Overstreet i'll opening,
said III part
The present parity depends entirely upon
auch declarations and guarantees, but its
maintenance and enforcement rests with the
Judgment and caprice of the secretary OF the
treasury who. by a 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 so used. IL
seems far better TO attempt proper regula
tiou Of the question by clear and permanent
STA. ute rather than depend upon occasional
declarations by the government OF It's inten
tion 1t is far better TO end the matter by a
public law, which shall be plain and uueQuivo
cal rather than rely upon proposals OF what
may or shall be done at some future date, or
lerve 50 dangerous an option within the CON
trol of one man. whether he be the president
or h, financial adviser.
The present standard of value in this count
Try Is gold. and has been recognized in
practice for more than half century.
The tremendous increaee of silver coin un'
der the operation of the laws Of 1878 and 1890
created a doubt as to the ability of the govern
Prior TO 1873, when the gold standard was
adopted, there had been issued by the govern
ment only SO3i ,2,iS silver dollars From Feb.
u, 1873, when the recOinag3 of the silver dol
lar was authorized, 20 Nov. I, 1895. when such
coinage was discontinued. there was coined
by the government 49,, 2,357 $50 silver dollars.
Upon this last date there was not silver dol
lar in circulation whose face value eQualed its
intrinsic value The difference between the
al
ment obligation, SO established by congress
sonal 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 eff
forts by very considerable number of the
people of the country to establish absolute
free coinage of silver, which shook public
confidence and produced the fear that n
change of the monetary standard would re-
suit
If the legal standard today is the gold
standard, under the act of 1873, a positive
statute to that effect can do no harm. IT, on
the other hand, there is any reasonable doubt
it should be dispelled by u statute plain and
clear in It's terms.
When certainty shall take the place of doubt,
and the integrity of our credit be as fixed as
readily be refunded at lower interest rates,
and future loans negotiated with ease upon
better terms than ever before. The rapid de-
velopment of American trade and its vast ex-
psnsion, bringing our people into close rela
tiOns with the leading nations of the world,
makes it imperative that tho standard of
value in which settlements are made shall be
the best known TO the highest civilization,
and shall safely appeal to intelligent and sue
ccssful experience. Recent events. shaped by
causes beyond our control bearing obliga-
tions which national honor requires shall be
courageousy discharged, open new fields for
American craftsmanship. Channels of trade
yet unknown to AmeIicBn 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 recommended
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.
1t is entirely consistent with the present
banking system. The same reasons which
Justify the issue Of 80 per cent Of the bonds,
will justify an issue to the par value Of the
bonds.
The only objection advanced, aside from that
Of dogmatic attack, generally, upon banks is
that it permits too large an increase Of the
volume Of circulation and threatens an infla.
ton But it 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, has reduced such circulation
far below the amount ever expected, and such
reduction can be crcditably charged to con-
traction which was equally unexpected. The
proper comparison is between the amount
possible under the present amendment. which
would b. but a lOper cent increase, an amount
which can be easily absorbed by the business
of the country and utilized in As many differ.
ent money centres as there are national banks.
The repeal Of the tax upon national bank
notes, and the substitution of u tax upon
bank franchises, aS measured by their capital
surplus and undivided profits are proposed
in a spirit Of fairness and for a Just distribu.
ton OF the burden of the tax. The larger
banks will pay the tax in the same degree us
the smaller banks, while the amount Of reve.
nue. viii be practically unchanged.
In the course Of his speech Mr. Shat
roth (Silverite, Colo) interrupted to
ask if the bill would not result in con.
tracing the currency TO the extent of
the $4,000, 900 IN silver impOunded
lit would not, replied Mr. Over.
street, because for every silver dollar
which goes into the treasury gold
dollar will 20 out into circulation. u
Republican applause.[
Mr.. Maddox Dem, Ga.) was the first
speaker i'll opposition to the bill. Re
ferring to former Speaker Reeds New
York speech advising the immediate en-
actment OF gold standacd legislation be-
fore some branch OF the government got
away from the Republican party, he
said:
'"rhe faithful understand that this
legislation must be enacted at once ol
not as ALL" If gold was the "existina
standard as contended it was so by
the unlawful usurpation of the executive
officers of officers of the treasury.
the treasury, under the bill, he pre-
dicted, would be raided. The bill
would convert every obligation of the
treasury into a gold obligation, and
would compel the government to sell
millions of gold to the amount of 25 pen
cent Of all the outstanding notes Of
whatever character, He argued thai
under the bill banks with sl,000,00C
capital, now required to deposit bonds
equal to a third of their capital in the
treasury were required to deposit only
$4,000 IN bonds, enabling them to con
tract or expand the currency at will
He then assailed Republican advocate
Of tha gold standard for apostssy ans
particularly attacked Mes,rs. Hepburn
lowaJ Dingley iMaiHsj and Grosycncl