Waterbury Democrat., 1901-02-08
BRYAN GIVES HIS VIEWS.
Discusses Bill Making Silver Dollar
 Redeemable in Gold.

Redeemable in Gold.
 Washington, Feb S.-Chairman Southard of the house committee on coinage has received from William J. Bryan his view of the pending bills before the house making the standard silver dollar redeemable in gold. MT Bryan says: The bill has q double purpose. First, to convert standard silver dollars into subsidiary coin, and second, to make silver dollars redeem able in gold or demand. In discussing the subject, however, it will be more logical to consider the latter proposi- tion first. as redemption is only a step toward retirement.
 ''There is no necessity for redemp- tion. The legal tender law will main- tain the parity between gold coin and silver dollars SO long as both can be used to an unlimited extent in the payment of public revenues and pri- vate debts. I. perhaps, should say that parity will be substantially main tained, for local and temporary condi- tions may under any law put ;l small premium upon any kind of money.' Alr Bryan cites the premium on sil- yer in New York, in 1893, caused by the local demand for small change. He also cites Senator Sherman in sup port of his statement. Proceeding, Mir Bryan says: 'AS soon aS the silver
 
 endless chain will be created and the arguments used against greenbacks and the treasury notes will then be turned against silver. Before the at | tempt to burden the gold reserve with 1 this new obligation is consummated, it may be worth while to consider the opinion expressed by Secretary Carlisle l in 1S9J.'
 | After quoting Mir Carlisle's testi- o hn11Sn ttpo l corning redemption, Mir Bryan con tinues: ''Mr Carlisle thought it q mis- take to commence paying in gold. but considered it dangerous to interfere with the custom after it once was es- tablished By the same logic it could be argued that we should not establish | the custom of redecming the silver dollars in gold.''
 Mir Bryan ends as follows: ''The measure recommended by the c0m- | mittee gives absolute control to the | hnancl@rS over the national debt. They | can increase it at any time by pres | cnting silver dollars for redemption and compelling an issue of bonds to ! replenish the gold reserve. They can 1 iii the same way contract the volume of money ill circulation. since money drawn into the treasury by an issue of bonds cannot go out again unless it | IS used to meet current expenses Clnd that only is possible when the eXpendi- | lures exceed the recciDts) CT loaned cut to favorite banks.
 | Second. The conversion of stand ard silver dollars into subsidiary coin is equivalent to the retirement of sill yer as standard money. and that is the last act ill the program instituted l some tWenty-seVen years ago and per | Slstenty pursued ever since. If this is completed gold will be the only legal tender money and bank paper the only | credit money. Bank notes not being Il | general legal tender and gold not being | ill circulation among the people, the masses will be doing their business l With money which will not discharge | legally their debts.
 | ITO convert q standard money into | a credit money is to narrow the foun- | datiorS Of our financial system and at | the same time enlarge the superstruc- | ture. Such a course weakenS the SyS- | tenn and both haStens catastrophe and 1 intensities it when it comes.
 Ut is estimated that 90 per cent of the business of the country is done with substitutes for money. but as all the substitutes are convertible into money on demand there must be proportion between the substitutes and the money beyond which it is not safe to go. If as at present large part of the money III CiIcuIatluu IS HOl tt legal tender the proportion between the volume of legal tender money and substitutes for money even is greater.
 l 'The proposed measure, by 6ecreas- ing the money of ultimate redemption and increasing the volume of promises to pay money, still further enlarges l the proportion between money and it's substitutes; this necessarily adds to the risk of the business man and less ems the security of the general public.
 If at any time foreign complca- , ticnS or panicS compel a considerable eXportation of gold the proportion be- tween money and it's substitutes still will be further increased or an i'm mense reduction will be necessary in the volume of business
 Horace White of New York was be fore the house committee on banking and currency yesterday in connection With the bill of AIr Lowering if Massa- chusetts authorizing national banks to issue guaranteed notes to an amount not in excess of, their paid-up and un- impaired capital
 Mr White approved the general principle of the bill. regarding it as one calculated to give a flexible cur rency. responsive to the varying needs 1 of business. He urged the necessity however. of making the notes absolute ly secure and suggested that this could be done by making them a first lien on the assets of the bank. This would : relieve the public from any doubt as to the notes and would give to the holder that guarantee he vas entitled