New-York tribune., 1900-08-26
DANGER OF BRYAN RULE.
SECRETARY GAGE TELLS OF THE EVILS
OF SILVER PAYMENTS.
IBY TELEGRAPH TO THE rR1BuSE.I

IBY TELEGRAPH TO THE TRIBUSE1
Washington. Aug. 25-In a carefully prepared
interview to-day the Secretary Of the Treasury
pointed out how Mr.. Bryan. if he should be
elected President and should adhere to the
position he took in 1896, could drive the Gov
ernment TO a silver basis upset the public
credit. destroy public confidence, paralyze in
dustry and plunge the country into financial
ruin. In answer to the question. I'm case OF
the election of Mr.. Bryan, could he order his
Secretary of the Treasury to pay interest on
coin bonds and the matured bonds themselves
in silver?" Secretary Gage said:
There is no doubt Mr.. Bryan could order his
Secretary Of the Treasury to make payment in
silver of all of the public debt payable in coin.
and for all current disbursements Of the Gov
ernment as well. which amount to from $1,000
600 to 81, 10000 a day. That he would give
such an order, too, is certain, if he is in the
same mind that he in 1896. for he was
then quoted as saving. eff there is anv one who
believes that the gold standard is a good thing.
or that it must be maintained. l want him not
to cast his vote for me, because promise him
it will not be maintained in the country longer
than am able to get rid of it.
do you think it would be practicable to con-
troll a sufficient volume of silver to make the
payments you referred TOP
He would have great difficulty in doing that at
once. The Treasury of the Government at the
present time is very firmly established upon
gold standard. Including the reserve of S15O-
0OOOOO held against the legal tender notes the
Government owns and controls over S22OOOOOOO
in gold coin and bullion while it owns and con-
trolls only about S16O00000 in silver the rest of
the silver being out in circulation among the
people, either in the form of silver certificates or
silver coin.
WOULD CHECK INFLOW OF GOLD
The announcement by the Treasury Depart
ment of its purpose to pay silver in settlement
of all interest on the public debt not specially
payable in gold, and TO make its daily dlsburse-
mentS to it's creditors in silver, would stop the
inflow of gold. or. at least very largely diminish
payments in gold and COrrespOndingly increase
payments into the Treasury of silver and silver
certificates. 1t, therefore, might he anticipated
that with good deal of perverse ingenuity. the
time would come at distant day when all the
revenues Of the Government would ne pald 10 IL
in silver dollars silver certificates. and all
disbursements made by it would be made in sill
dollars or silver certlhcates Ihere 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 Col
lectors of Internal Revenue
THE Government then. would be practically
on a silver basis. would it not?"
That would no doubt, be accomplished, and
the Government. properly speaking, would be
on a silver basis.
DISASTROUS EFFECT ON BUSINESS.
How would this affect the credit of the Gov
ernment?"
Most disastrously, l have no doubt The
movement inagurated as proposed would give
sense of insecurity. the outstanding greenbacks
that are by the law redeemahle in gold would
be presented at the Treasury for redemp
ton and the Treasury notes of 1880
likewise. OF these two there are S4SOOUO.-
600 outstanding. Against these the Gov
ernmeut holds, under the law, S19OOOO,OOO
in gold. 1t does not require much sagacity to see
that If the gold reserve were not entirely
hausted, il would be soon reduced below the
S1OOOOOOOO mark. which the law has estab-
lished as a minimum. it being the duty of the
Secretary Of the Treasury when that point is
reached TO restore the reserve 10 $15O.OOO.OOO
Under the adverse influence upon general bust
ness affairs business would be depressed. in
dustry checked. and the Governments revenues
would be very much diminished Instead of
surplus we would probably witness a deficiency.
In restoring the gold reserve, TO which / have
lust referred the law directs the Secretary of the
Treasury, II necessary, to sell bonds. payable in
gold redeemable in one year, payable in twenty
years at a rate OF interest not to exceed 3 per
cent year. With the impairment TO the public
credit and with the loss OF revenues. as just in
dicated, IL IS very doubtful whether bonds with
in the Limitation OF interest permitted in the
law could be sold. II they could not. the power
TO redeem the demand obligations OF the Gov
ernment either in gold silver would fail
How would this state of things in the Gov
ernment finances affect general business cOndi-
tions through the country"
The effect would be deplorable Nobody would
be able 10 measure accurately the influence
upon his affairs of such Government ac-
ton. Every one would be in a state or fear;
one has said. either run or, hide. Commercial
duIness would succeed the present commercial
activity, and we would again witness that in
dustrial paralysis which characterized the years
1898 and 1856. when the question of what was to
ha tha standard agitated the puhlie mind