Omaha daily bee., 1901-02-08
BRYAN WRITES HIS VIEWS
Committee ON Coinage Receives
Letter on Redecming silver
Dollars in Gold.

WASHINGTON, Feb. chairman South
ard of the house committee on coinage today
received from W. J. Bryan the latters v.ew
OF the pending bills before the house max
ing the standard silver 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 purpose, first to
convert standard silver dollars into sub
dniIarrgs com, and, second, to make silver
ddiU.Iars redeemahle i'm gold ON demand In
ulscussihg the subject however, II will be
more logical TO consider the latter PROPOSE
tnn,, t,Um ~, Mrs, as redemption is only step
-, There Is no necessity for redemption
me legal tender law will maintain the
SO long as both can be used to an unlim-
lteu extent IN the payment OF public revc-
na nues ana ana private debts. | should, perhaps,
say mat the parity will be substantially
maintained Tor local and temporary condi-
,i9iis ,i9iis may under any law put "A small pre-
MUM upon any kind of money
Mr.. Bryan cites the premium on silver in
New York in 1893, caused rs .he local de-
mand for small change. He also cites SEN
ator sherman in support OF his statement
Proceeding, MIR. Bryan says:
As soon as the silver dollar is made re-
ueemable in gold, another endless chain
VIII be created and the arguments again st
the greenbacks and treasury notes viii
then be turned against silver Before the
attempt to burden the gold reserve with
this new obligation is consummated. II may
be worth while to consider the opinion eX-
pressed by Secretary Carlisle In 1897
After quoting Mr.. Carlisle's testimony
before a house committee concerning re-
demption, Mr.. Bryan continues
Mr.. Carlisle thought II a mistake TO com
mence paying In gold, but considered II
after 1t was once established By the same
logic II can be argued that we should not
establish the custom of redeeming the sill
yer dollars In gold.
Mr.. Bryan concludes as follows;
The measure recommended by the COM
mittee gives to the iinancers absolute con-
trOl over the national note. They can In
crease crease It at any time by presenting silver
. issue of bonds to replenlsh the gold reserve.
They can In the same way contract the vol
ume or money In circulation, since money
drawn into the treasury by an issue of
bonds cannot go out unless II IL used to
possible when the expenditures exceed the
receiptsl, or Is loaned out to favorite banks.
Second-The conversion of standard silver
dollars Into subsidiary coin is equivalent
tn the retirement Of silver as standard
money, and this is the last act in the sys-
TEN instituted some twenty-seyen years ago
and persistently pursued ever since II
this is completed gold will be the only
legal tender. with silver and bank paper
| a general legal tender and gold not being
In circulation among the people, the masses
will be doing their business with money
that will legally discharge their debts. To
convert. a standard money into credit
money is to narrow the foundations or our
, financial system and at the same time
enlarge the superstructure. Such a course
weakens the system and both hastens
catastrophe and ntensifies 1t when It comes.
1t is estimated that 90 per cent of the
business OF the country Is done with sub
sttutes for money, but as all substitutes
/ are convertible into money on demand there
must be a proportion between the substi-
tutes and the money beyond which 1t Is
not safe to go. If, as At present, large
part OF the money In circulation is not a
legal tender the proportion between the
volume Of legal tender money and substi-
! tutes for money Is even greater.
: The proposed measure. by decreasing the
volume of money for ultimate redempti IN
or by lessening the arrangement to pay
such money. still further enlarges the rro-
/ portion between money and its substitutes;
this necessarily adds to the risk Of the
business man and lessons the security of the
general public.
If. at any time foreign complications or
panics compel considerable expectation OF
gold the proportion between money and It's
substitute will he still further increased OF
an immense reduction Will be necessary
In the volume of business.