The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1902-12-03
SECRETARY SHAW
SUBMITS REPORT

In Lawful money, which includes silver
worth 80 cents. and there are now out
standing $4,000. 600 silver dollars
worth 80 cents each in gold. The
aggregate unprotected fiat at this time
is therefore s565,OO0,OOO or $4,000 GOO
more than in 1893.
Not only current obligations Of the
government, but all contracts between
|cidzens and All bills Of exchange,
domestic and foreign, payable in Unit
ed States money. are dischargab'e al
the option of the payor (except when
otherwise expressly provided IN mon
ey coined on government account, and
at fully 35 per cent. proht to the gov
ernment, the bullion in which is worth
Hess than 40 cents on the dollar.
The peril involved in this condition
may be averted for time, and pos
sibly for al time. The evils that pre-
cipi ared the disaster of 1898 escaped
popular, though not universal recogni-
lion, so, long as public revenues ex-
|ceeded expenditures. The reason as
signed why the exchangeability of
gold and silver should not be sstab-
|lished is that it would entail so large
an obligation that the national cred
| it would be endangered. This en-
croaches the argument, but pleads
the preference that the government
which has coined this silver and prof
tied thereby shall be protected regard
| less o. possible danger TO the citizens
and the peril to business.
The statute now provides that parity
between all forms Of money shall be
maintained. A former secretary of
| the treasury expressed the opinion
that a somewhat similar statute au-
thorized the redemption of silver in
gold. If that be the intention | sub
init ii would be better to express the
same in specific terms. It has been
found necessary, in order 70 maintain
| the parity of green backs and treas
ury notes. to expressly provide for the
redemption thereof in gold am not
|nnmindful of the claim that parity
will naturally continue so long as the
government accepts silver in payment
of revenues. If this be true, there
would be no donger to the government
should the two coins be made inter
changeable.
| believe the treasury of the Uni G,
States would be in less danger Wit
an express provision for the exchange
ability Of gold and silver than under
existing laws. Al the present time the
treasury furnishes all the gold needed
whatever the purpose for which it is
demanded, and certainly whatever the
purpose for which it is demanded,
ce.;ainly no more would be required
for commerce. and not as much for
hording. should all doubt as to the
status of silver, be removed. On the
contrary. il all forms of money were
made the equivalents of gold, then all
occasion for hording one coin mare
than another would vanish, and the
danger to the treasury would be di-
minIshed instead of being increased.
The ability of this government to full
| fill its promises has never been ques-
stoned. but doubts arising from u,Iex-
pressed policies have caused more
than one crisis.
Should It be deemed wise OF pro-
vide for the exchangeability Of gold
and silver. then national bank notes
might be made payable in gold. In
thi, way there would be shifted TO the
banks the greater burden of furnish
| ing gold for domestic use and for ex-
| |port. and this. in the event Of an un-
favorable balance of trade, might
prove Oh great advantage to the gov
ernment. It would be manifestly un-
Just. as weA az illogical to require
banks to reheem their notes in gold
so long as legal tender silver remains
|irredeemable and interchangeable.
There can be no valid reason. legal,
economic or equitable why the gov
ernment should not redeem in gold
all its own Obligations, whether they
bo represented in paper, 100 per cent
har, or in silver so per cent. fiat.
When the government expressly guar
antees its own issue no objection can
appropriately be urged against re-
Quiring banks to pay their notes in
gold On the contrary. see many