The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-11
Who Said MIR. Bryan Told Him IL He
Were Elected He Would Find a
Way to Pny Bonds i'm Silver.
SECRETARY CAGES VIEWS
LAW NEEDED TO STRENGTHEN GOLD
STANDARD DECLARATION.
without Additional Legislation the
Treasury May BE- Flooded with Sill
ver-Horace Whites Statement.

WASHINGTON, ia l. iO.-Secretary Of the
Treasury Gage. Ho ace White. of New
York. and several other prominent finan-
ciers appeared before the House committee
on coinage, weights and measures at the
request of the committee. and gave their
views of the Overstreet. Levy and Hill bills
to maintain the parity of the money Of the
United States. The three bills, although
containing different provisions. each pro-
vide for the exchange, at the option of the
holders of the gold and silver coins of the
United States To accomplish this the
Overstreet bill authorized the secretary of
the treasury to use the gold reserve fund
in the Treasury, and the Levy bill author
lied him to issue per cent. bonds. Before
the hearing. Chairman Southard read let
ter from John H. Rhodes, the chairman Of
the finance committee of the New York
Chamber of Commerce, heartily indorsing
the bills and urging the enactment of the
proposed legislation at this session of Con-
gress.
Mr. Levy, of New York, who was present
to advocate this BILL created something of
a sensation by stating that Mr.. Bryan, the
recent Democratic candidate for President.
had told him that If elected President he
would find way to pay the obligations Of
the government in silver.
Horace White said he assumed that no
argument was necessary in support of the
gold standard. The only question at issue
was the means to be placed at the disposal
of the secretary of the treasury to secure
it's maintenance. He then took up the lam
guage of the bills and gave the Hill bill his
Endorsement.
Mr. Shafroth, of Colorado, asked whether
to make silver and greenbacks exchange
able In gold did not. in fact, make them
simply promises to pay in gold.
Certainly" replied Mr.. White.
'Then you desire to impound $500, 900 In
silver and eventually dump the silver on
the country as bullion?'
Not at once, but gradually" replied Mr.
White. I'VE should do just what Germany
has done. think it would be lucky if we
could get back half of what we paid for the
silver" Questioned further, Mr. White said
a failure of crops-anything which would
greatly lessen the demand for money, would
send silver and silver certificates under the
present law into the treasury and eventually
cause disparity between the price of gold
and silver because Of the governments in
ability to pay gold.
Mr. Hill, oe Connecticut, said that in his
opinion the two dangers which threatened
the gold standard were the greenbacks and
the silver. OF those two he considered the
former the greater, but the country seemed
to think otherwise. He asked If Mr.. White
did not agree that much of the silver could
be recoined into subsidiary coin and the re-
mainder made exchangeable. Mr.. White
agreed to this proposition.
Secretary Gage said that the question in
volved in the bill before the committee
were simple He agreed with Mr.. White
that In dull times the bankers or other
holders OF money in the centers of popula-
tions would gradually withhold gold and
allow silver and silver certificates to pile
up in the treasury through the payment of
customs duties and taxes. If Congress
failed to make gold and silver exchange
able it implied a doubt as to whether they
were at parity. As long as this doubt, no
matter how slight it be, existed
the bankers and holders Of money
refused to take the risk. 'Whv
should they take the risk?" he asked
"if you refuse to remove 1t. Why charge
them with responsibilities you will not
take?" he asked. striking the table en-
phatically
Secretary Gage said his experience had
taught him that if man showed the slight
est inclination to evaue responsibility for
enterprises he had undertaken, he was hurt
in his community 1t was law of life. said
he. and 1t was pretty good law. He saw
no risk In the government removing every
doubt as TO its policy and purpose
Mr.. Cochran, of Missouri, asked the Sec
retary If silver was 70 be redeemable in
gold. why 1t would not be better from
standpoint of economy to sell the silver and
place it in the. gold fund for redemption
purposes
eff IL could be done without seriously dis.
turbing the money markets" replied Secre-
tary Gage. II think that course would he
more honest"
After the recess Mr.. White was asked
few questions by members of the commit
tee. Mr.. Gaines asked whether the making
OF gold contracts did not tend TO produce
disparity between gold and silver coin as
money Mr. White said he did not think
so. He did not know wh, 1t should. There
is no money but gold,' he said. 1t was the
measure of value and medium of exchange.
Nothing but gold filled chat bill. Silver.
Mr.. White said, In response to further
questions, is not money. and silver SUBJ
sidiary is not money. Ii is small change.
"Is there not a strong moral obligation
on the part OF the United States govern