Montour American. (Danville, Pa.) 1866-1920, 1900-09-06

public debt payable in coin, and for
all current disbursements of the gov
ernment as we'll, which amount to
from $1,500,000 to $1,750.000 a day
That he would give such an order, too,
is 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
a good thing, or that 1t must be main
tanned, 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 practical
BILE to control a sufficient volume of sill
yer to make the payments you refer
to?"
"He would have great difficulty in
doing that at once. The treasury of the
government at the present time is very
firmly established upon a gold stand
ard. Including the reserve OF $780,
600, 900 held against the legal tender
notes, the government owns and con-
trolls over 1920, 900 900 in gold coin and
bullion, while 1t owns and controls
only about s16.000,000 In silver, the
rest of the silver being out in circula-
tion among the people, either in the
form of silver certificates or silver coin.
CHECK INFLOW OF GOLD.
"The announcement by the treasury
department of its purpose to pay silver
I'm settlement of all interest on the
public debt not specially payable in
gold, and to make it's daily disburse-
In, Gil mould
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 be an
ticipated that with a good deal of per-
verse ingenuity, the time would come
at no distant day when all the revenues
of the government would be paid to 1t
I'm silver dollars or silver certificates,
and all disbursements made by it would
be made in silver dollars or silver GER
tificates. There would thus be estab-
lished 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 in
teTnal revenue.
THE government, then, would be
practically on silver basis, would Il
not?"
THAT would, no doubt, be accom-
plished, and the government, properly
speaking, would be on silver basis"
How would this affect the credit Of
the government"
Most disastrousiy, | have no doubt
The movement inaugurated as pro-
posed would give sense Of insecurity,
the outstanding grenbacks that are by
the law redeemable In gold would be
presented at the treasury for redemp-
tion, and the treasury notes of 1890
likewise or these two there are $780,
000, 900 outstanding Against these th e
government holds, under the layy
$150,0OO,O00 in gold 1t does not e.
quire much sagacity to see that if the
gold reserve were not entirely exhaIIst-
ed 1t would be soon reduced below the
100000 900 mark, which the law has
established as a minimum, it bein the
duty of the secretary of the tire asury
when that point is reached to ] estore
the reserve to $3.50, 100000 Under the
adverse influence upon genera busi-
ness affairs business would soo'l be de-
pressed, industry checked, and the
governments revenues would be very
much diminished. Instead CT a sur
plus, we would probably WITH ess a de-
6ciency. In restoring the gold reserve,
to which | have just referred, the law
directs the secretary Of the treasury, II
necessary, to sell bonds, payable In
gold. redeemable in one year, payable
In 20 years, at a rate of interest not to
exceed per cent yeaY. With the
impairment to the public credit and
with the loss Of revenues, as just indi-
Gated, II is very doubtful whether
bonds within the Limitation of interest
permitted in the law could be sold. II
they could not, the power to redeem
the demand obligations of the govern
ment either in gold or silver would
fail"
How would this state of things in
the government finances affect general
business conditions throughout the
country"
"The effect would be deplorable No
body would be able to measure accu-
rately the influence upon his own af-
fairs of such government action. Every
one would be In q state Of fear; and
when people are afraid they will, as
some one has said, either run or hide
Commercial duIlness would succeed the
present commercial activity, and We
would again witness that industrial
paralysis which characterized the years
1893 and 1896, when the question OF
what was to be the standard agitated
the nublic mind"