The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-09-04
AN OPEN LETTER TO THE HON,
LYMAN J. GAGE, SECRETARY
mOF THE TREASURY.

Dear Sir:-The newspapers of August
Goth published an interview with you in
which YOU were quoted as saying that
there is no doubt Mr.. Bryan Gf elected
President) could order his Secretary of
the Treasury to make payment in silver
of all the public debt payable in coin, and
for all current disbursements of the Gov
eminent as we'll, which amount to ST.
500, 900 to 1850, 900 per day; and that he
would give such an order, too, is very
certain, if he is in the same mind that
he was in 1896" You went on to say
that although Mr.. Bryan would have
great difficulty in doing that at once
owing to the small silver resources of the
Government, yet he might accomplish it
in time, as the mere announcement of
such a purpose would stop the inflow of
gold or at least very largely diminish
payments in gold and correspondingly in
crease payments into the Treasury of sill
YER certificates; that this would prac-
tically put the Government on a silver
basis. ruin it's credit, and bring meal
culable disaster upon the business inter-
ests of the country.
Having for a great many years taken
a deep and somewhat active interest in
the establishment of sound monetary
system in the United States, l may with
out improperly publicly address to you
a few remarks in reply to your public
statement. / emphatically deny, Mr..
Secretary, that the danger set forth by
YOU in your interviews really exists, and
that any President will be able to do
what you say might be done, unless the
Republican party in control of the Gov
eminent in both it's legislative and
executive branches, prove itself utterly
dishonest in its protested purpose to
maintain the gold standard
This denial is not based upon the
reasoning of those of your critics who
seek to show by figures that President
desiring ever so much to put the country
upon silver basis, would lack the means
for doing So On the contrary, for argu-
ment's sake, l will accept all you say
on that point. But you omit to mention
a fact of decisive Importance.
If the Executive, as you say, possesses
the discretion of paying silver in settle
ment of all interest on the public debt
not specially payable in gold and of
making it's daily disbursements to its
creditors in silver" it is owing to a flaw
in the currency law passed at the last
session of Congress-a law which, as the
spokesman of the Republican party
promised, was to put the gdlO
standard upon an impregnable basis. 1t
was suggested at the time by some of it's
critics that this law was purposely so
manipulated by Republican politicians in
the Senate as to leave the possibility of
the subversion of the gold standard by
executive action open in order to enable
the Republicans in the present Presiden-
tial campaign to say that the election of
a Republican President was absolutely
necessary to save the gold standard and
to prevent dreadful economic disaster.
Whether any such scheme entered into
that legislation, | do not assume to de-
termine. Certain it is however that this
feature of the law is now so used, and
that you, Mr.. Secretary, actually do so
use it for the evident purpose of alarm
ing the business community and the pos
sessing classes generally. 'N
/ hardly need to say to you that the
spreading of false alarms of this kind is
a very questionable and responsible thing
for anybody, and especially for a SeCre-
tary of the Treasury. And l call your
prediction of the possibilities specified
by you and of the disasters sure to fol-
low a false alarm for very simple rea-
son. Whoever may be elected President
on November 9Th, there will be another
session of Congress before he will take
office on March 4, 1901. The Republicans
will have strong majorities in both
houses of Congress. The Executive, TOO,
wi no in ha will
fore, be able to make such laws as they
please. They will thus have full power
and ample opportunity before the in
auguration of the next President to pass
any legislation required to make it ut
terly impossible to any President to
break down the gold standard in the way
you, Mr.. Secretary describe in your in
terview. A simple enactment in two or
three lines substantially proving that it
shall be the duty of the Secretary of the
Treasury to pay in gold or silver, at the
option of the creditor, all kinds Of in
debtedness OF the United States now pay
able in coin; may be sufficient. And if
there should be another flaw in the pres
ent law dangerous to the gold standard
in any other way, you, Mr.. Secretary,
able financier as you are, will surely de-
tect it, and find legislative remedy and
have it ready in the shape of well-ma-
tured bill to be submitted to Congress
at the opening of the session. In short,
the Republicans, controlling both the
legislative and executive branches of the
Government WILL next winter have
ample power and opportunity to do what
they ought to have done at the last ses-
sion-to put the Currency law in such a
shape that the gold standard cannot pos
sibly be shaken by executive action, no
matter who may occupy the Presidential
chair-and thus remove, to that extent at
least, the basis of our monetary system
from the changeful game of party poll
tics.
Do you see any reason for doubling
that Congress at it's next session will do
this? 1t is quite evident that, if there
is any substance at all in your predic-
tions of disaster, the Republicans in
Congress cannot refuse to do it without
proving that the professed solicitude OF
the Republican party for the maintenance
of the gold standard is arrant hypocrisy.
But if there be any wavering, | am con-
vinced public opinion will, in case of ne
cessity compel them to take the neces-
sary steps.
You will thus have to admit, Mr.. Sec
rotary, that when you sounded your
note of alarm, you had overlooked the
most important fact that you and your