The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-06

the opposition are bimetallists in theory
only The policy. nc wever. which they ad-
vocate defeats thei.' protested object. and
they are. I'm fact silver monometallists.
We require the of both gold and sill
yer as a part OF our circulating medium,
and we have carefully provided for their
retention Under the bill silver and silver
certificates become the pocket money of
the people. All currency In Nominations be-
low ten dollars is withdrawn, and silver
certificates in denominations of one, two
and five dollars will take their place. This
Will obviously secure a wide distribution
OF the silver certificates and silver coin.
Thus. distributed. their parity with gold
will doubtless be maintained without the
necessity of making them a charge upon
the gold reserve.
There IS very broad distinction be-
tween the unlimited issue of silver as
currency and its limited use: a distinction
which the advocates of unlimited coinage
in their extraordinary zeal seem to fail
70 perceive. The result, sir, which would
flow from the two policies of limited and
unlimited coinage are quite divergent.
The treasury is able TO maintain the in
terchangeability of a limited amount of
silver and paper with gold and maintain
them at par. The gold reserve of $l50,0O0.
600 will enable the Treasury Department
to keep the United States notes and treas
ury notes at par with gold by exchanging
gold for them at the will of the holder. 1t
is manifest that If there is no limit to the
silver and paper issues, the treasury,
strong as ii is or strong ii may become.
would soon be unable to redeem with gold
the mass of silver and paper which would
be presented for redemption.
The adoption Of the silver standard
would result In severe contraction of
the currency. 1t would expel as already
observed, the stock of gold in the country,
which is $1.025. S25, 165; and the silver and
paper would fall from the gold standard
down to the silver basis-which would be
the value of silver bullion for the time be-
ing. The shrinkage in the money value of
the total silver and paper currency
amounting TO about 81. 250,647.7 4S would be,
the basis sss @, Of the value Of silver
while proposed in the interest of the ex-
pansion of our currency, would result in
a contraction of our money stock from its
present volume and value, S2,276, Az, $40. to
about one-fourth of that amount, or $780,,
513,16
State Bank Issues.
Our friends on the opposite side of the
chamber have been entirely consistent in
their opposition to stable monetary sys-
tenn. They opposed the resumption of
specie payments. They demanded the free
coinage of silver when the so-called Bland
Allison act of 1873 was passed. and were
still insistent in behalf of free silver COIN
age when the Sherman law was enacted in
1890. While other countries have been go
ing TO the gold standard they have strong
ly persisted in our adopting policies which
would place the country squarely upon a
silver standard. Their financial policy has
been consistently reactionary.
They have great faith in the efficacy of
the governments fat. From what has been
[Mr Jonesl. the fiat of the government is
the chief essential of a sound, stable mon
etary system. During the last Congress
the opposition advocated the issue of $780,,
of frrn \. he
proposition received the earnest support of
the advocates of free-silver coinage. The
eXigency, sir which will justify the Nation
in issuing paper currency must be a grave
one indeed, but no circumstances can be
SO emergent as to warrant any government
in issuing an absolutely irredeemable paper
currency.
The junior senator from South Carolina
MIR McLaurin] proposed an amendment to
the substitute of the finance committee
providing: THAT Sections 3412 and 3413 and
all other acts and parts of acts which i'm
pose any tax upon the circulation of state
banks or state banking institutions be, and
the same are hereby, repealed
The amendment received the solid Demo-
cratic free-silver vote. 1t was i'm harmony
with the policy and traditions of the DEM
ocratic party. 1t was no sudden inspira-
ton, for the Democratic convention in 1892
solemnly resolved that the prohibitory 10
per cent. tax on state-bank issues be re-
pealed." 1t is quite proper, sir. that silver
should go hand In hand. They may we'll
have a common author.
Sir, ii is almost beyond belief that any
party, in the light of to-day should DELHI
erately propose to pollute the present cur
rency of the country by the introduction of
state-bank issues. The present currency is
national. known everywhere and good ev-
erywhere within our jurisdiction, while the
proposed currency would be known no.
where beyond the community in which is
sued, good nowhere else, and often depre-
ciated at home
A writer in the North American Review
thus describes the annoyance and inconven-
fence to the people of state-bank money:
I'm the Southern and Western States the
divergence in some instance exceeded even
% per cent. Not only was an accurate
knowledge Of the nominal exchange of tie
day necessary before making purchases at
a distant place, but traveller proceeding
from the South or West toward the North
or East, if he were so fortunate as to have
his money received at all, could not adjust
his reckoning at an inn till an abstruse
calculation was made of the discount to
which his bank notes were to be subjected,
or till he had recourse to the interposition
of a broker"
1t may be we'll to recall the utterances
of NJ. Garland, of Virginia, in 1910, with
Table showing growth or diminutiO