New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-26
THE MONETARY PLAN.
CRITICISM OF SOME FEATURES OF THE
CONFERENCE REPORT.

CONFERENCE REPORT.
To the Editor of The Tribune
Sir: The gold standard bill reported from the
conference is in fact a compromise, and not as
so often happens a disguise of one or the
other pending measure by tricks or phrase 1t
is in some respects a better bill than that OF
either house taken by itself. But unhappily, It
retains some of the most Objectionable features
of each bill not much modified in essence as
in phraseoIogy. The House members did not
make very creditabe stand for some of the
hest features of their bill and perhaps
selected with the expectation that they would
not fail to agree in the end on the banking pro-
visions. They stood with some persistency
against the introduction of bimetallic amend
ment by the Senate and did secure a modihca-
ton Of it's form which probably renders 1t about
as impotent for evil from the first 1t was for
good.
The declaration Of the gold standard Is as dis
tinct and clear as any reasonable person could
wish, and it is in terms declared that "all forms
of money issued or coined by the United States
shall be maintained at parity of value with
this standard and it shall be the duty of the
Secretary of the Treasury to maintain such
parity" Yet the House provision for redemp-
ton of silver coin or certificates with gold was
obstinatey omitted and every provision for free
interchange of one kind of money for another.
Every dollar at the command OF the secretary
for redemption is so far tied up by provisions
for the redemption OF United states and Treas
ury notes that IL will be possible for Secretary
TO say that the mandatory clause is empty and
of no effect as to silver, because Congress has
taken from him all power to maintain its parity.
The creation of separate divisions, by which
| certain parts of the money in the Treasury shall
be held as trust funds for purpose eXclu-
sively, was without doubt intended to make the
maintenance Of the gold standard more secure.
But it will be found a sacrifice of substance for
shadow a labored form full of inconvenience,
but not at all increasing the power of a Score
tary who means to maintain this standard. while
It will simply furnish excuse for failure TO
any Secretary who wishes to fail With every
dollar that the Secretary has raise dis
tinctly pledged II is now for the mainten-
ance of the parity of all money of the United
States, his power cannot be increased. But II we
ever have a Democratic Secretary shall learn
within year that this law prescribes particular
funds for such use and how he shall use them.
! in his opinion leaving him no other funds or
! ways for the purpose of maintaining the parity
| Of silver. There will be needed from the bust
! ness interests OF the country, If this bill be-
| comes law, not less care than hitherto, as some
! have feared, but more care to hold fast in power
those who mean to maintain the absolute sound
ness of the currency.
Ihe banking provisions, winch were INTENDED
| by the House bill to facilitate enlargement
of the bank circulation have been retained. with
| the Senate's refunding provision, essentially
changing their character. Instead of limited
| expansion, depending upon the needs of bust
ness, it invites a great inflatiob Of circulation
in order to employ a bonus q many millions
from the Treasury. Objectionsto this provision
have been stated. and by manS Of the soundest
| bankers in the country are held just and i'm
| portant but the House has not been able to eX
| clude 1t from the bill. Standing it's own
merits this refunding plan probably would not
| pass either house, but when ii is fastened to a
| bill TO establish the gold standard which was
| established years ago far asiit ever can be
! by legislation. all members who favor sound
| money are expected to give the measure a
| whole their support. This Nation has had
strange good fortune in many respects More
than one error which threatened serious conse-
| quences has by shifting events been rendered
! innocuous. There is room to hope that this re-
| funding provision also may turn out less dan
! gerous than it has appeared, for the Nation is
now rapidly advancing to a new position in the
financial world, which may give 1t a power in
international exchanges and strength of credit
! in international markets quite surprising eX-
| pectationS. 1t is not the less mistake TO incur
| needless political and financial risks, but when
| the elections next fall have established control
| of the Government in Republican hands for the
| ensuing four years there may be opportunity to
| modify such parts of this monetary system as
| then appear to need modification. w. NJ. G.
New York, Feb %, 1900.