The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-08-27
THE DANGER In BRYAN
IF ELECTED HE COULD OvERTURN
THE sOUND-MONEY LAWS.
Could Order the Payment of Coils
Bond. i'm siIver-Gage Says the
Result Would Be a Panic.

ST. LOUIS, Aug. pa Washington dis
patch to the Globe-Democra says: IF Mr..
Bryan is elected he can break dowr the
gold standard and put in effect. through an
executive order. his financial ideas in spite
of existing legislation" This is the orinion
of Mr.. Gage, secretary OF the treasury. ex-
pressed to-day in a long interview which he
prepared in answer to the question adj
dressed to him In this language:
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? III so.
would our credit be injuriously affected
thereby?' Mr.. Gage said:
There is no doubt Mr.. Bryan could order
his secretary of the treasury to make
payment in silver of all Of the public debt
payable in coin, and for all current dis
bursements of the government as well.
which amount TO sl.500,00 to N.15o.Wo per
day. That he would give such an order.
too, is very certain, IL he is i'm the same
mind that he was i'm 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 it must be maintained, i
want him not to cast his vote for me. be-
cause L promise him 1t will not be MAIN
tanned in the country longer than 1 am
able TO get rid of it,
He would have great difficulty in secur-
ing a sufficient volume of silver TO make
the payments at once. The treasury OF the
government at the present time is very
firmly established upon a gold standard.
Including the reserve of Sl50.000. 900 held
against the legal tender notes. the govern
ment WINS and controls over $z10,o0,M
in gold coin and bullion. while it owns and
controls only about Sl6,0o0,ooo In silver, the
rest of the silver being out In circulation
among the people either in the form OF
silver certificates or silver coin.
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 credit
ors in silver, would stop the inflow OF gold.
or at least very largely diminish payments
in gold. and cor~respondingly increase pay
ments into the treasury of silver and silver
certificates. II therefore might be anti
cipated that with a good deal of perverse
ingenuity the time would come at no dis
tant day when all the revenues OF the gov
eminent would be paid TO IL i'm silver dol
lars or silver certificates, and all disburse-
ments made by il would be made in silver
dollars or silver certificates. There would
thus be established a circuit of silver out
of the treasury into the hands of the peo-
pie, from the people into the banks, from
the banks into the custom house and into
the hands of the collectors Of internal rev.
enue.
9TH government, properly speaking.
would be on a silver basis and the credit OF
the government would be affected most dis
astrously. j have no doubt Tn movement
inaugurated as proposed would give a sense
of insecurity, the outstanding greenbacks
that are by the law redeemable i'm gold
would be presented at the treasury for re-
demption. and the treasury notes OF 1890
likewise. OF these two there are s430, 900. 600
outstanding. Against these the government
holds. under the law, $50. 200 1000 I'm gold.
1t does not require much sagacity 20 see
that II the gold reserve were not entirely
exhausted IL would soon be reduced below
the sl0O.0O0,000 mark. which the law has
established as a minimum. IL being the
duty of the Secretary OF the Treasury when
that point is reached 10 restore the reserve
to $50. 600, 900.
Under the adverse influence upon gen.
eral business affairs business would be de-
pressed. Industry checked and the govern
ment's revenues would be very much d.
minished. Instead of a surplus we would
probably witness a deficiency. In restoring
the gold reserve TO which l have just re-
ferred the law directs the secretary OF the
treasury. IL necessary. to sell bonds. pay
able in gold, redeemable I'm one year, pay
able I'm twenty years. at a 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 limitation OF interest permitted in the
law could be sold. II they could not the
power TO redeem the demand OBLIGATIONS
OF the government either I'm gold or i'm sill
yer would fail.
THE effect upon the general business
conditions throughout the country would
be deplorable. Nobody would be able TO
measure accurately the influence upon his
own affairs of such government action.
Every one would be in a state OF fear. and
when people are affected they will, as some
one has said, either run or hide. Com
mercial dullness would succeed the present
commercial activity. and we would again
witness that Industrial paralysis which
characterized the years 1893 and 1886, when
the question OF what was TO be she
tandard agitated the public mind"