Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-08-25
Bryan, if Elected, Gould Easily Bring
Them About.
STATEMENT BY SECRETARY GAGE
Government Coin Obligations Could
Be Met With Cheap Money.
IMPORTANT AND NDCONVINCING


portant interview on the question whether
Mr.. Bryan, If elected President could break
down the gold standard. Many inquiries
have recently been made of The Star as to
what Mr.. Bryan could do in this direction.
One reporter Of The Star asked this ques-
ton: I'm case Of the election Of Mr.. Bryan,
could he order his Secretary Of the Treas
ury to pay interest on coin bonds, and the
matured bonds themselves, in silver? If
SO, would our credit be injuriousiy affected
thereby?'
What an Executive Order Can Do.
In answer to this and other questions
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 we'll,
which amount to a million and half to
a million and three-Quarters dollars per
day. That he would give such an order, too,
Is very certain, If he is in the same mind
that he was in 1885, for he was then quoted
as saying: If there is anyone who believes
that the gold standard is a good thing. or
that it must be maintained want him not
to cast his vote for me, because l promise
him 1T will not be maintained in the coun-
try longer than am able to get rid of it F"
DO you think it would be practicable to
control sufficient volume of silver to
make the payments you referred toy
He would have great difficulty in doing
that at once. The treasury of the govern
ment at the present time is very firmly es-
tablished upon a gold standard. Including
the reserve of s15O,oOOOOO held against the
legal tender notes, the government owns
and controls over $500 100000 in gold coin
and bullion, while it owns and controls only
about s160G9.GOO in silver. the rest of the
silver being out in circulation among the
people. either in the form of silver certifi-
Gates or silver coin.
What the Result Would Be.
But the announcement by the Treasury
Department of its purpose to pay silver in
settlement of all interest on 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 at least very largely diminish pay
ments In gold. and correspondingly increase
payments. into the treasury of silver and
silver certificates. 1t therefore might be
anticipated 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 it in silver
dollars or silver certificates, and all dis
bursements made by 1t would be made in
silver dollars or silver certificates. There
would thus be established a circuit Of sill
yer 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 internal
revenue"
THE government then, would be practi-
cally on silver basis. would it not?"
THAT would no doubt be accomplished,
and the government. properly speaking,
would be on a silver basis''
DisastrOus to the Country's Credit.
How would this affect the credit of the
government"
Most disastrously, have no doubt. The
movement inaugurated as proposed would
give sense Of insecurity, the outstanding
greenbacks that are by the law redeem
able In gold would be presented at the
treasury for redemption, and the treasury
notes of 1890 likewise. OF these two there
are S430,otOOOO outstanding. Against these
the government holds, under the law, $780,
UU'W0 in gold. 1t does not require much
sagacfty to see that If the gold reserve
were not entirely exhausted it would be
soon reduced below the $1OO,OO 600 mark,
which the law has established as a mini
mum. it being the duty Of the Secretary
OF the Treasury, when that point is reach
ed, to restore the reserve to $50 900 600.
Under the adverse influence upon general
business affairs business would be depress-
ed, industry checked and the governments
revenues would be very much diminished.
Instead Of a surplus we would probably
witness deficiency. In restoring the gold
reserve to which 1 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 twenty
years, at rate of interest not to exceed 3
per cent per annum. With the impairment
to the public credit, and with the loss in
revenues. as just indicated, 1t is very
doubtful whether bonds within the limita-
tion of interest permitted in the law could
be sold. If they could not the power to re-
ernment, either in gold or in silver would
fall
Industrial Paralysis.
How would this state of things in the
government finances affect general busi-
ness conditions throughout the country?"
THE effect would be deplorable. Nobody
would be able to measure accurately the
influence upon his own affairs of such gov
ernment action. Every one would be in a
state of fear. and when people are afraid
they will, as some one has said. either run
or hide. Commercial dullness would sue
ceed the present commercial activity and
we would again witness that industrial
paralysis which characterized the years
1898 and 1896. when the question Of what
was to be the standard agitated the public