The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-02-08
BRYAN GIVES
HIS OPINION
DISCUSSES CURRENCY BILL
PENDING IN CONGRESS.
he FEARS ENDLESS CHAIN
Proposed Law Gives Financiers
Absolute Control Over the
National Debt.

National Debt.
Washington, Feb. . Chairman
Southland, of the house committee on
coinage, today received from VIM. j.
Bryan the latter's views of the pend
ing bill before the house, making the
standard silver dollar redeemable N
gold. After thanking the committee
for the courtesy of inviting his views,
Bryan says in part:
"The bill has a double purpose:
First, to convert the standard silver
dollar into subsidiary coin, and
second, to make the silver dollar re-
deemable in gold on demand. In dis
GUESSING the subject, however, it will
be more logical to consider the latter
proposition first, as redemption is
only a step toward retirement.
"There is no necessity for redemp-
ton. A legal tender law will main.
tain parity between gold coin and sill
YER dollars so long as both can be used
to an unlimited extent in the payment
of public revenues and private debts.
I should, perhaps, say that the parity
will be substantially maintained, for
local and temporary conditions may
under any law put a small premium
upon any kind of money
Bryan cites the premium Oh silver
in New York in 1898 caused by local
demand for small change. He also
cites Senator Sherman, in support Of
his statement. Proceeding Bryan
says:
"As soon as the silver dollar is
made redeemable in gold the endless
chain will be resumed and treasury
notes will then be turned against sill
yer. Before the attempt to burden
the gold reserve with this new obi
cation is consummated, it may be
worth while to consider the opinion
given by Secretary Carlisle in 1885,"
After quoting Carlisle's testimony be-
fore the house committee concerning
redemption, Bryan continues:
"Carlisle thought it a mistake to
commence paying in gold, but con
sldered it dangerous to interfere with
the custom after it was once estab-
lished. By the same logic it IA be
argued that we should not establish
the custom Of redeeming silver dollars
in gold" Bryan concludes as follows:
"The measure received by the com
mittee gives to financiers absolute con
troll over the national debt. They
can increase it any time by presenting
silver dollars for redemption and COM
polling the issue of bonds to replenish
the gold reserve. They can, in the
same way, contract the volume of
money in circulation, since money
drawn into the treasury by an issue Of
bonds cannot 90 out again, unless 1t
is used to meet current expenses, and
that is only possible when expendi-
lures exceed receipts, or loaned out to
favorite banks.
"Second.: conversion of standard sill
yer dollars into subsidiary coin is
equivalent to retirement of silver as
standard money and this is the last act
in the programme instituted some 81
years ago and persistently pursued
ever since. If this is completed gold
will be the only legal tender money
and bank paper only credit money.
Bank notes not being a general legal
tender and gold not being in circula-
ton among the people, the masses will
be doing their business with money
which will not legally discharge their
debts. To convert standard money
into credit money is to narrow the
foundations Of our financial system
and at the same time enlarge the su-
p~erstructure. Such a course weakens
the system and both hastens a catas-
trophe and intensifies it when it
comes.
1T is estimated that So per cent OF
the business of the country is done
with substitutes for money, but as all
substitutes are convertible into none
on demand, there must be a proportion
between substitutes and money be.
yond which it is not safe to go. If,
as at present, a large part of the
money in circulation is not legal tend,
or, the proportion between the volume
of legal tender money and substitutes
for money is even greater. The pro
posed measure, by decreasing the mon
sy of ultimate redemption and in
creasing the volume of promises tt
pay money still further enlarges the
proportion between money and its
substitutes; this necessarily adds tt
the risk Of the business man and les
sens the security of the general pub
lie. If, at any time foreign compli
cations or panics compel a considerable
expectation of gold, the proportion be
tween money and it's substitutes will
be still further increased or an i'm
mense reduction will be necessary il
the volume of business.
PLEASING TO PETTIGREW,
Cont0rVill6. Pa. Feb. p While