The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-05

discussion is over we are sure to ne con-
fronted with the charge made by the sena-
by our reafiirmation of the gold standard
We have deliberately abandoned the posi-
ton which the Republican party and the
country have heretofore taken In favor of
not in ACCORDANCE with the facts The
bill now before the Senate con-
tains no disavowal of the position
heretofore taken on the question of
international bimetalIism and places no
obstacles in the way of its accomplishment
in the future. If II is possible to secure
perrnanence of relative value to gold and
silver coins with the free coinage of both
metals at n fixed ratio, the permanence
can only be secured by concurrent action
o. all the leading commercial nations.
GOLD RESERVE FUND.
THE second section provides for a re-
serve fund of s150.0OO. 900 in gold to secure
the prompt and certain redemption of out
standing United States notes and treasury
notes. This fund is increased s50.000.000
over that which is now held by the treas
ury for redemption purposes. That this
amount of $is0,O0O.000 can be held without
embarrassment to the treasury will be evil
dent when consider that the total
amount Of gold in the treasury the 1st
OF November, 1889, exclusive of the amount
held to pay gold certificates. was s2o2, O00.-
| ing the gold reserve, was $2S9 900, 600.
This section makes II the duty of the
secretary OF the treasury to replensh the
reserve fund from time to time by the use
exchanging the notes for any gold in the
general fund Of the treasury, or any which
| may be deposited at the treasury or sub
treasury, or he may use the notes for Sc
curing gold coin under the provisions of
Section 300 of the Revised Statutes. In
case all of these methods should fail and
the gold in the fund shall fall below $780,,
000.0u0, then IL becomes his duty to sell
United States bonds, the proceeds to be
| used to restore the fund to the maximum
amount by paying the gold so obtained into
the general fund of the treasury and then
exchanging for 1t an equal amount of notes
which have been redeemed from the re-
serve fund. The committee having in view
the rapid increase in the gold production
OF the world and the equally rapid increase
| in the available stock of gold in this coun-
| try, are of the opinion that it will not be at
any time necessary to sell bonds under the
provisions of this section.
''In considering questions affecting the
| adequacy and use of the gold reserve, we
are bound to inquire into the ability of the
treasury to maintain an equality of value
between the silver dollar and silver certifi-
| for direct exchange ability. The amount
or silver certificates in circulation on the
list of December. 1899. was 1894, 30, 800 and
of standard silver dollars SIS, 232, 454, total
of $4,-,525,254. This amount will be grad
| ually increased by the silver coinage which
will take place under the provisions of the
act of June Is, 1898. Both silver dollars and
| silver certificates are by law receivable for
all public dues, and as long as the ordinary
receipts OF the government are more than
$6OO,0O00O0 per annum it Is very evident that
| silver certificates are not likely to go to
| discount. The government itself, in the
/ absence of positive Injunction, would be
bound to maintain the value of this form
of currency through the ordinary business
| Of
1 The committee does not suggest any
changes in the status OF the silver dollar or
the silver certificates. We do not propose
| to take away from silver any of the mon
/ etary privileges or prerogatives which it
now enjoys. In fact, we believe that the
| legislation suggested will greatly strength
en- its position in our monetary system.
/ RETIREMENT OF NOTES.
| 1.-THE third section makes 1t the duty of
the secretary of the treasury. as fast as
standard silver dollars are coined as re-
quired by law from the bullion purchased
under the act of July H. 1890, to retire and
cancel an equal amount of treasury notes.
and provides that upon the cancellation of
the notes silver certificates shall be issued
against the silver dollars so coined.
THE fourth section authorizes and di-
reefs the secretary of the treasury to re-
| ceive deposits of gold coin and to issue
gold certificates therefor, in denominations
of not less than $40. The provisions of this
/ section are in most respects the same as
| those contained in the twelfth section of
the act of July II, 1882. The purpose of
the section. as whole, is to give certain
| and active monetary use to the large and
| rapidly increasing amount of gold in the
| country.
1.-The fifth section provides that no United
States notes or treasury notes shall here
after be issued or relssued in denomina-
tons of less than $40, and all such notes of
a smaller denomination whenever redeemed
| shall be Cancelled and notes of sic or up
ward substituted therefor. 1t also provides
| that no silver certificates of a higher de-
nomination than $40 shall be issued
/ The sixth section of the substitute gives
to the secretary of the treasury authority
to convert portion of the national debt
| into bonds bearing per cent. interest The
proposition contempates a profitable an
| tic1pation OF interest payments ana conse-
Quent reduction of the public debt. :.
| In order to induce the holders of the
outstanding bonds to consent to the con-
version proposed and in consideration of
the reduction of interest effected thereby
| the secretary of the treasury is authorized
| to pay to them in exchange a sum not
| greater than the present worth of such
bonds, computed to yield an income of az
per cent per annum and their par value.
/ The surplus in the treasury over and above
| the amount required for an adequate work.
| ing balance and for the reserved fund Gre
ated by this bill would allow the secretary
| W pay WITHOUT ulIuculty the xSS,OUUUO0
| which would be required to effect this re-
duction of interest. In fact, under pres
ent conditions and with the necessity con-
| fronting us of more promptly turning cur
rent receipts back into the channels of
business. the payments suggested would
AFFORD welcome relief from dangerous con-
| gestion.''
! THE NATIONAL DEBT
Mr.. Aldrich, in discussing the effect of
this transaction on the national debt. said
the committee was of opinion that it would
not place this portion of the national debt
beyond the control of the government I'VE
trust that our expenditures he said, twill
soon be on a peace footing, but we must
realize that We shall have large disburse-
ments for some time to come, which il
| may not be possible to pay from the cur
| rent revenue. In considering the possibili-
ties OF the future we cannot overlook the
Tact that national debts of the world have
increased at an astonishing rate. We be-
neve II Is. impossible to overestimate the
advantage which would accrue to the
United States from placing its national debt
upon per cent. basis and keeping it's
| obligations, issued at this rate. at par in
the markets of the world.
/ BY the provisions of this bill we remove
/ all possible doubts and apprehensions as to
the character of our monetary standard
| and make ii clear to the world that we in
/ forms of our currency equal in value with
<r<x11 n~<I ~.