The representative. [volume] (St. Paul, Minn.) 1893-1901, 1901-02-14
ENDLESS CHAIN
no GOVERNMENT REDEEMs SILVER
IN GOLD,
Then Why Should This Nation BE the
First to Strike Down One Of Its
Most Important Industries.

Congressman Shafroth, member of the
committee on coinage, weights and
measures, has prepared the minority re-
port upon the bill directing the secre-
tary of the treasury to exchange gold
for legal tender silver dollars when pre-
sented to the treasury. The report says:
We object to the passage of this
measure:
]. Because it will impose increased
burdens upon the gold reserve of the
treasury. To say that it will not is to
deny the recognized principle of supply
and demand. To add the 100000 900
Of silver dollars which now act as re-
demption money for the silver certif1-
Gates and are not charge upon the
gold reserve, to the moneys which are
redeemable in gold must greatly in
crease the burdens upon the treasury
reserve. 1t cannot be safe for a nation
to increase it's gold obligations without
increasing it's reserve.
CREATING A NEW ENDLESS CHAIN.
2. Because it will create a new end
less chain upon the gold reserve of the
treasury. The policy of the government
heretofore has been to diminish the
obligations redeemable in gold and
thereby prevent runs upon the treas
ury. The gold standard advocates have
unanimously cOntended that the green
backs should be retired, SO as to relieve
the government of the necessity and cost
of maintaining a gold reserve. They
contended that the government should
go out of the banking business. This
measure is reversal of that policy. 1t
creates new obligations upon the re-
serve; it plunges the government deeper
into the banking business.
3. Because it facilitates tho exporta-
tion of gold. BY making the principal
medium of exchange used by the peo-
pie redeemable in gold, it becomes much
easier for the exporter of gold to gather
up obligations payable in that metal,
and present them to the treasury for
exchange. No other nation on earth IA
cilitates the export of gold. The scram-
BILE of the European nations at the pres
ent time for gold should demonstrate
the necessity for legislation discourag-
ing instead of encouraging the exporta-
tion of that metal.
4. Because it will produce the de-
struction of silver dollars and silver GER
tificates as money. When silver dollars
are made payable in gold, they become
simply promises to pay. What govern
ment would maintain promises to pay
stamped upon as dear material as silver,
when they be printed upon paper at no
appreciable cost? Would it not be fool
ish for the nation to keep invested in
promises to pay, $250,O00,000 (the bull
lion value Of her silver dollars) when
she could print them upon paper and
save that amount? Nearly every wit
ness that testified before the committee
admitted that the measure would ulti-
mately produce retirement of the sill
yer dollars and sale of the same as
bullion. This is new policy in the
treatment of the precious metals. No
nation on the face of the globe dis.
credits its silver coins by making them
simply promises to pay. No government
redeems its silver in gold. Why should
this nation, which produces one-third
Of all the silver of the world, be the
very first to strike down one of it's own
important industries?
WILL DEPRESS PRICES OF ALL
PROPERTY.
5. Because 1t will depress the prices
of all commodities and property. This
measure will make gold do all the work
of basic money now done by both gold
and silver. We cannot thus increase
the burdens upon gold without increas-
ing the demand for the same. The in
crease in the worlds production of gold
is not sufficient to displace the silver
stock in existence. Statistics show that
more than so per cent of the gold pro-
duct is used in the arts or lost to COM
merce, which leaves only $15,0000O0 a
year to supply the needs Of all Chris
tendon. This is less than per cent
OF the gold stocks of the world and is
no more than the legitimate require
ments of an increasing commerce.
6. 1t is impossible for silver dollars 10
60 to a discount as long as they are
limited in number as now provided by
law, and hence there is no necessity for
this legislation. AS it is impossible for
silver dollars as now limited by law to
depreciate in value, why should we run
the hazards of making increased bur-
Gems upon the gold reserve. of creating
new endless chain upon the treasury,
of facilitating exports of gold, of an
nihilating silver and silver certificates
as money and producing an era of falling
prices.-National Advance.