Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-12-03
Recommends Legislation Max
ing Silver Coin and Gold
Coin interchangeable
WOULD REMOVE ALL DOUBTS
Under Present Statute the Coin Is
interchangeable, But There Is No
Specific Provision and the Secretary
Says an Element of Doubt in Times
of Panic Might Lead to Crisis.

made public today, makes some impor
atnt recommendations. He advise
} that gold and silver coin be made inter
changahle by law. He believes ther
would be less danger with an expires
provision for the exchangability of goi
and silver than under the existing laws
He says in part:
4 United States notes and treasur,
notes have been made redeemable b.
law in gold, but the present nationa
bank issue of $3S0,000, 600 is payable II
lawful money, which includes silver
worth SO cents, and there are now out
standing 550,000,000 silver dollars wortt
SO cents each in gold. The aggregate
unprotected fiat at this time time is
therefore, $565, 100000, or S65,000,oot
more than in 1893.
Not only current obligations OF the
government. but all contracts between
citizens, and all bills of exchange. DO
nestle and foreign, payable in onlteo
4 States money, are dlschargable at the
option of the payor Except when 9TH
lerwise expressly provided in money
I
fully 80 per cent profit to the govern
ment. the bullion in which is worth less
| than 40 cents on the dollar
THE peril involved in this condition
may be averted for a time, and possibly
for all time. The evils that precipi-
tated the disaster of 1898 escaped popu-
| lar, tho not universal, recognition, SO
long as public revenues exceeded eX-
penditures. The reason assigned why
the exchangability of gold and silver
should not be established is that 1t
would entail SO large an obligation that
the national credit would be endan-
gered. This comedies the argument,
but pleads the preference that the
government which has coined this sill
yer and profited thereby shall be pro-
tected regardless of possible danger to
the citizens and the peril to business.
"The statute now provides that par
ity between all forms of money shall be
maintained A former secretary of the
treasury expressed the opinion that a
somewhat similar statute authorized
the redemption of silver in gold. If that
be the intention I submit 1t would be
better to express the same in SPECIFIC
terms. It has been found necessary, In
order to maintain the parity OF green
backs and treasury notes, to expressly
rroyide for the redemption Thereon IN
gold. I am not unmindful of the claim
that parity Will naturally continue SO
long as the government accepts silver
in payment of revenues. Ii this be
true. there would be no danger to the
government should the two coins be
made interchangeable.
II believe the treasury of the United
States would be in less danger with an
express provision for the exchangabil-
ity of gold and silver than under exist
ing laws. AT the present time the
treasury furnishes all the gold needed
whatever the purpose for which 1t is
demanded, and certainly no more would
he required for commerce, and not as
much for boarding, should all doubt as
to the status of silver be removed. On
the contrary, il all forms of money
we're made the equivalent of gold, then
au occasion for boarding one coin more
than another would vanish, and the
danger to the treasury would be d.
unfinished instead OF being increased
The ability of this government to ful-
fill its promises has never been cues
toned. but doubts arising from unex-
pressed policies have caused more than
one crisis.
"Should Ii be deemed wise to pro-
vide for the exchangability of gold ana
silver. then national banks might be
made payable In gold. In this way
there would be shifted to the banks the
greater burden OF furnishing gold for
domestic use and for export, and this,
IN the event of an unfavorable balance
of trade, might prove of greatsadvan-
tage to the government. 1t would be
manifestly unjust, as well as illogical,
to require banks to redeem their notes
in gold so long as legal tender silver re-
mains irredeemable and unexchanahle.
There can be no valid reason, legal,
economic or equitable, why the gov
eminent should not redeem in gold all
its own obligations, whether they be
represented in paper, 100 per cent fat,
or in silver, 60 per cent fiat. When the
government expressly guarantees its
own issue no objection can appropri-
ately be urged against requiring banks
to pay their notes in gold. On the con-
trary see so many advantages to be
gained, especially with respect to our
foreign commerce, by making every OBJ
legation between the government and
the people, and between individuals,
payable in money every dollar of which
shall be the equivalent of 25.S grains of
standard gold, and on which a demand
for this equivalent can be directly or
indirectly predicated.
Recent events not only justify but
enforce the conclusion that our bank
ing system is imperfect. During GER
tain months of the year interest rates
dropped dangerously low-dangerous
in the sense that speculation was in
vited thereby When the time arrived
for moving crops. rates advanced
alarmingly high. Meantime, the price
of government bonds rendered the
maintenance of national bank circula-
ton improbable, and this class of cur
rency was retired with great rapidity.
The department exerted every influence
within it's authority to counterfeit this
natural contraction.
"Whenever there is a surplus of pub
lie funds in the treasury, and finan-
cial conditions make 1t advisable that
it be released, 1t becomes necessary
to purchase government bonds. At
present there is no other way to put
accumulated surplus revenues prompt
ly In circulation. The available bonds
are not held by banks or by business
concerns. So, whenever the government
is a purchaser, the price is promptly