The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1901-02-08
v. j. BRYAN WRITES
He Objects to Making Silver
RedeemabIe in Gold.
ITS PURPOSE is DOUBLE
Main Object Is TO Retire Sill
YER From Circulation.

Washington, Feb. 7-Chairman South
| ard of the house committee on coinage
| today received from William J. Eryan,
the latter's view Of the pending bills te-
fore the house, making the STANDARD sI-
yer dollar redeemable in gold. After
thanking the committee for the courtesy
] of inviting his views, Mr.. Bryan says in
part:
The bill has a double purporse: Fast,
to convert standard silver dollars into
subsidiary coin, ana, second, 10 make sill
yer dollars redeem able in gold on demand.
In discussing the subject, however, i will
be more logical TO consider the latter
proposition first, as redemption IS only
step toward retirement.
There is no necessity for redemption.
The legal tender law viii maintain the
parity between gold coin and silver dol
lars 50 long as both can be used to an
unliml ted extent in the payment Of pub
lie revenues and private debts. 1 should
perhaps say that the parity will be sub
standaLly maintained for local md tenn
porary conditions. and may under any
law put small premium upon any KID
of money"
Mr.. Bryan cites the premium on silver
III New York in 1893, caused by the local
dsmand for small change He also cites
enauor Sherman in support of his state
ment. Proceeding Mr.. Bryan says:
'.AAs soon as the silver dollars is made
reGe enable in gold, another endless chain
VIII be created and the arguments used
against the greenbacks and treasury
notes VIII then be turned against silver.
Before the attempt to burden the gold
reserve with this new obligation is con-
SUNNI lted, it may be worth while TO con
slider The opinion expressed by Secretary
Carlisle in 1S95''
After quoting Mr.. Carlisle's testimony
before a house committee concerning re-
demption Mr.. Bryan continues:
MI Carlisle thought it a mistake to
paying in gold but considered
it dangerous to interfere with the custom
after it was once established. BY the
same logic it can be argued that we
should not establish the custom Of re-
deenlng the silver dollars in gold"
Mr. Bryan concludes as follows:
THE measure recommended by the COM
mittee gives to the financiers absolute
control over the national debt They
can increase it at any time by presenting
silver dollars for redemption and compel
ling an issue Of bonds to replenish Tire
gold reserve. They can in the same
way contract the volume Of money in cir
culation since money drawn into the
treasury by an issue Of bonds can not go (
out again unless it is used to meet cur
rent expenses (and that is only possible
when the expenditures exceed the re- F.,
cipts )or loand out to favorit banks.
..Second-The conversion of standard /
silver dollars into subsidiary coin is /
equivalent to the retirement of silver as
standard money and this is the last act .
in the program instituted some twenty /
seven years ago and persistently pursued /
ever since. If this is completed gold viii .
Ice the only legal tender money and bank
paper the only credit money. Bank notes
not being a general legal tender and gold
not being in circula ton among the people
the masses viii be doing their business
With money which Will not legally dis
charge their debts
Ito convert a standard money into a
credit money IS to narrow the founda-
ttons Of our financial system and at the
same time enlarge the superstructure.
such a course weakens the system and
D1Lu ueiolCla teAAt-- ~ s--eA %-~--@-fA-Aela
it when it comes.
1T is estimated that % Per cent Of the /
business Of the country is done with sub
stitutes for money. but as all the substi-
tuted are convertible into money on de-
mand, there must he a proportion be
tween the substitutes and the money be-
yond which st is not safe TO go. If as
at present, large part Of the money in
circulation is not legal tender, the pro-
portion between the volume of legal ten
der money and substitutes for money IS
even greater
"The proposed measure by decreasing
the money of ultimate redemption and in
creaslng the volume Of promises to pay
money stin further enlarges the proper
ton between money and its substitutes;
this necessarily adds to the risk of the
business man and lessen the eourity OF
the general public.
"If at any time. foreign complications
or panics compel a considerable exporta-
ton Of gold the proportion between
money and its substitutes viii he still
increased or an immense reduction VIII be
necessary in the volume OF busines s."