Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1900-09-06
THE DOOM OF GOLD.
That is What the Election of Bry-
an Would Mean.
Secretary Gage Says the Election of n
Democratic President Would
Wreck the Nations Credit
Financial Facts.

Secretary of the Treasury Gage, in
discussing the financial situation,
shows conclusively that if William
Jennings Bryan is elected to the pres
idency he would have it in his power
to break down the gold standard, put
the government on a silver basis, and
pay its coin obligations in silver
money. He was asked if Mr.. Bryan
could order his secretary of the treas
ury to pay interest on coin bonds,
and the bonds themselves, in silver,
and. if so, whether the credit of the
government would be affected iniuri-
,ously. The secretary said:
''There is no doubt Mr. Bryan could order
his secretary of the treasury to make pay
,ment in silver OF all the public debt pay
able in coin, and for all current disburse-
ments of the government as well, which
amount to Sl,5000OO or $l,75O,OO0 a day.
That he would give such an order, too is
certain, ii he is in the same mind that he
was in 1896. for he was then quoted as say
ing: "lf there is anyone who believes that
the gold standard is good thing or that
it must be maintained, | want him not to
cast his vote for me, because | promise
him it will not be maintained in the coun-
try longer than | am able to get rid of it
silver to Replace All Gold.
When asked if he thought it
would be practicable to control suf-
ficient volume of silver to make the
payments referred to, 9Ir. Gage re-
piled:
He would have great difficulty in doing
that at once. The treasury of the govern
ment at the present time is firmly estab-
lshed upon gold standard. Including the
reserve of Sl50. .000, 600, held against the legal
rtendernotes the government owns and con-
r,Il in, onln M
lion, while it owns and controls only about
sl6OOO,0g0 in silver, the rest of the silver be-
ing out in circulation among the people,
either in the form OF silver certificates or
silver coin.
but the announcement by the treasury
department of its purpose TO pay silver in
settlement of all interest on the public debt
not specifically payable in gold, and to make
its daily disbursements to its creditors in
silver, would stop the inflow of gold, or at
least largely diminish payments in gold
and correspondingly increase payments
into the treasury of silver and silver GER
titicates. 1t, therefore, might be antici-
pated that with a good deal of perverse
ingenuity the time would come at no dis
tant day when all the revenues of the gov
ernment would be paid to 1t in silver dollars
or silver certificates and all disbursements
made by it would be made in silver dollars
or silver certificates There would thus
be established a circuit of silver out of the
treasury into the hands of the people from
the people into the banks, from the banks
into the custom house, and into the hands
of the collectors OF internal revenue.
Then the government properly speak
ing would be a silver basis"
To Wreck Nations Credit.
Mr.. Gage, when asked how this
would affect the credit of the govern
ment, replied:
Most disastrously. have no doubt. The
movement inaugurated as proposed would
give sense of insecurity, the outstanding
greenbacks that are by the law redeemable
in gold would be presented at the treasury
for redemption, and the treasury notes of
1890 likewise. OF these two there are $780,
100000 outstanding. Against these the gov
ernment holds. under the law, Sl50,00O, 900
in gold. 1t does not require much sagacity
to see that if the gold reserve were not en-
tirely exhausted ii would be soon reduced
below the 600 mark, which the law
has established as minimum, 1t being the
duty of the secretary OF the treasury, when
that point is reached, to restore the re-
serve to $3.50 900, 900.
Under the adverse influence upon gen
eral business affairs business would be de-
pressed, industry checked, and the gov
ernment's revenues would be much 6imin-
ished Instead of surplus probably
would witness deficiency.
Bonds Would Find No Buyers.
'In restoring the gold reserve to which l
have just referred the law directs the sec
TeldTy Oh the treasury, IL necessary, 10 sell
bonds, payable in gold, redeemable in one
year. payable in 20 years, at rate of in
terest not to exceed three per cent per
mum. With the impairment to the public
credit, and with the loss of revenues, as just
indicated, it is doubtful whether bonds
within the limitation of interest permitted
in the law could be sold. If they could not
the power to redeem the demand obliga-
tions of the government either in gold or
in silver would fail"
The secretary said, regarding
how this state of things in the
government finances would affect gen
eral business conditions throughout
the country:
"The effect would be deplorable. No
body would be able to measure accura teiy
the influence upon his own affairs of such
government action. Everyone would be
in a state of fear, and when people are
afraid they will, some one has said,
either run hide. Commercial dullness
would succeed the present commercial
activity and would again witness that
industrial paralysis which characterized
the years 1893 and 1896. when the question
of what was TO be the standard agtated
the public mind"
G1rIn 1864 the democrats called