The Minneapolis journal., 1902-11-08
A CURRENCY DANGER
Why the Sound Money Issue Is Not
aDead One by Any
Means.
How It Is Possible for Secretary
of the Treasury to Put the Coun-
try on a Silver Basis.
From The journal Bureoae, Room So, Poss
B,siZdSn1, Washingtosa.

Building, Washingtoa'.
Washington, Nov 8.-"Members of the
republican as we'll as of the democratic1
party are making great mistake in go
ing on the assumption that the sound
money issue Is dead"
So spoke high official of the treasury
department last week.
80 long as it is possible for secre-
tary of the treasury to put the country on
a silver basis, by a purely administrative
act, and without any violation of law,
the question ought to be an issue. So long
as a president has it in his power, by a
mere reversal Of an administrative pol
icy, to debase the standard currency,
both parties should see that the president
is pledged to maintain the gold standard
So long as there is no law to protect the
currency from an attack Of this kind, 1t
should be made the subject of definite
declaration in the platform to which the
candidate pledges adherence"
"How about the bill passed last winter? ?
Did not that bill make the two inter-re-
deemable?''
? That's just the point. It seems to be
generally supposed that such was the. ef-
feet of that bill. But that idea Is a. mis-
take. The bill was originally drafted and
as advocated by Representative Overstreet
of Indiana did contain a clause making 1t
to redeem the silver dollars in gold but
that clause was stricken out in conference
committee upon the inSistence OF certain
members Of the senate. There is a general
clause which says it shall be the duty Of
the secretary + omaintain the parity. OF
the two metals, and there is paragraph
which defines the value Of a dollar IN
terms Of gold. But there is no part in the
law which makes it the duty Of the secre-
tary Of the treasury to redeem the silver
dollars in gold. Moreover, the very fact
that such clause was stricken out IN
conference last winter, after much dis
cussion, shows that it was not the inten-
ton Of the trainers of the law that 1t
should have that effect. AS mere sur
plusage, 1t would not have offended any
body. Any secretary Of the treasury In
interpreting the law, would, take notice
of these facts, especially would he do so
if he were disposed to interpret it as CIV
ing him the power to reverse the present
policy. of the department. ..~.
Congress ought to have put that fin
ishing touch to the work Of establishing
the gold standard. The law should be
| made such that no president or secretary
| of the treasury could change the standard
of monetary value without new law from
congress. The only way to do that is
to make it the duty of the secretary Of
! the treasury to redeem the silver dollars
| in gold. There are now in the United
| States treasury: something like $50, 0,000,.
900 silver dollars. These are worth about
| 40 cents apiece in gold Supposing the
secretary should begin paying in silver
dollars and should not regard them as in
| terchangeable at the option of the payee
what would happen? Panic. 1t woule
| amount to an attack on the integrity o
the money standard. People with out
standing credits would see the possibilit!
of their debts being paid in money OF :
cheaper sort. A hundred dollars owed t.
them would turn into fifty all over tn
land. The mere suggestion would maxi
credit contract at an alarming rate. Th
whole structure Of credit and prosper1t.
would fall with crash.
But it may be said that no secretar,
of the treasury would dare to. do such
thing. AS it looks now, it would seen
not. But conditions change. Suppos
the currency issue to drop from publ
: attention.; suppose a campaingn to b.
fought on some new and absorbing topi
like trusts, socialism, or Imperialism
Everybody thinks the free silver issue" i
dead. 1t is not talked; it does not pla;
any part in the campaign; the part
platforms ignore it as they ignore tn
free soil or greenback issues. A man.
elected who is not committed on cur
rency. 1t may be he has not thoughtSver
much about 1t. But after he gets int
office the country gets into fnancia
straits, we will say, as it did in the sec
! ond term Of Grover Cleveland. The issue
Of the campaign are overshadowed i
more pressing questions Of credit an
money. The new president, we will say
) discovers leaning toward silver. The ad
nainistration Of the treasury is purely
discretionary matter as he finds the Law
He believes, sincerely we will say, tha
it will be blessing to the country an
to the great body of the people, to max
the silver dollar the standard of debt
t paying money. He begins circulating til
: $50, 100000 of cheap dollars and refuse
j. to make them redeemable in gold. Whs
are you going to do about it?
;, Therefore I maintain the currency Is
u sue is not dead. It is alive, and ought I
;, be regarded as alive until the laws al
t made perfectly clear; until it Is made i
J. legal for a secretary Of the treasury
Z president to put the country on cheal
er monetary hasis.'
W. w. Jermane.
Il A. N. wATERHoUsE DEAD,
v Philadelphia, Nov. S.-Archibald N. Waite
4 house, of the firm Of Lambert & Waterhous
- general agents of the Mutual Life Insuran,