The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-08-27
GAGE SEES GHOSTS.
Warns the People Against Election
of BRYAN.

Washington, Aug. 27.-Lyman Gage, Sec
reary of the treasury, has made a state
ment concerning the effect of Mr.. Bryan 3
election would have upon the county's
financial system Secretary Gage said:
There is no doubt Mr.. Bryan could order
his secretary of the treasury to make pay
ment in silver of all of the public debt
payable in coin and for all current dis
bursements of the government as well,
which amount to IL million to ia million
dollars a day. That he would give such
an order, too, is very certain, if he is in
the same mind that he was in 1896, for
he was then quoted as saying: If there
is any one who believes that the gold
standard is good thing. or that 1t must
be maintained, I 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
to coin a sufficient volume of silver to
make the payments you referred to? MI
Tie would have great difficulty in do
ing that at once The treasury OF the
firmly established upon a gold standard
Including the reserve of $50 million dol
than 22o million dollars in gold coin and
about 16 million dollars in silver, the rest
of the silver being out in circulation
silver certificates or silver coin.
But the announcement by the treas
silver in settlement of ali interest Of 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, AZ least, very largely dtmin-
increase inc payments into the treasury of
silver and silver certificates 1t therefore
deal of perverse Ingenuity the time would
come at no distant day when all the rev.
to it in silver dollars or Silver Certificate
There would thus be established cir
cult of silver out of the treasury into the
the banks from the banks into the Gus
tom house and into the hands of the col
lectors OF internal revenue
THE government then would be practi-
cally on a silver basis, would it not?''
That would no doubt be accomplished
and the government, properly speaking.
would be on a silver basis
How would this affect the credit of
the government
Most disastrously, have no doubt.
The movement inaugurated as proposed
would give a. sense of insecurity, the out
standing greenbackS that are by law re-
deemable in gold would be presented at
the treasury for redemption and the
treasury notes of 1890 likewise. OF these
two there are $50 million dollars out
standing. Against these the government
holds. under the law, $50 million dollars
in gold. 1t does not require much sagacity
TO see that If the gold reserve were not
entirely exhausted it would be soon re-
duced below the 100 million dollar margin
imum, it being the duty of the secretary
of the treasury, when that point is
lion dollars Under the adverse influence
upon general business affairs, business
would be depressed, industry checked and
the governments revenues would be very
much diminished. Instead of a surplus,
we would probably witness deficiency.
I'm restoring the gold reserve to which
I have just referred, the law directs the
secretary of the treasury, if necessary, to
sell bonds, payable in gold, redeemable in
one year, payable in twenty years at rate
of interest not to exceed 8 per cent. per
annunn with the impairment to the pub
lie credit, and with the loss in revenues,
just indicated, it is very doubtful
whether bonds within the limitation of
interest permitted in the law could be
sold. If they could not the power to re-
deem the demand obligations of the gov
eminent, either in gold or in silver, would
fall
How would this state of things in the
government finances affect general BUSH
ness conditions throughout the country?''
THE effect would be deplorable. No
body would be able to measure accurately
the influence on his own affairs of such
government action Every one would be
in state of ear. and when people are
afraid they will, as some one has said,
either run or hide. Commercial dizziness
would succeed the present commercial ac-
tivity and we would again witness that
industrial paralysis which characterized
the years 1888 and 1886, when the question
of what was to be the standard agitated
he mil 1fo ind