Evening star., 1902-01-20
EXCHANGE GoLDFoR SILVER
DEMOCRATIC VIEWS VOICED IN A
MINORITY REPORT.
Alleged That It Would Necessitate
Larger Reserve and Renew
the Endless Chain.

The minority report Of the House commit
tee on coinage, weights and measures on
the bill directing the Secretary OF the
Treasury Ito exchange gold for legal tender
silver dollars takes the position that the
passage of the bill is certain to produce
financial disturbances. The following gen.
eral proposition is laid down:
"Our. government has never conceded the
right to the holder of silver dollars to de-
mand from the treasury gold therefor, nor
to the holder Of goln to demand silver dol
lars therefor. Such demands always have
been refused at the treasury. 1t is the
notes and bonds OF the government that
are payable in either gold or silver, at the
option OF the holder"
The following reasons why such a meas
ure should not be enacted are given:
First, it will require:a large increase OF
the gold reserve of thei treasury, as II the
obligations upon a neSBrve are increased
the reserve should Abe aorrespondingly en-
larged. II 1t requires 5O000,00O In gold
to act as reserve fort the redemption of
$346, 6,OOOO GOO of United States notes called
greenbacks and $40, ,283 0S6 of treasury notes
issued under the Sherman act, will 1t not
take at least $500. .oo0 !0oo in gold to act as
reserve when the $5;lD, 7B2 GIT of silver dol
lars and silver certificates are made d.
rect charge upon that reserve?
Second, 1t will create new endless
chain upon the gold reserve Of the treas
ury and thereby plunge the government
deeper into the banking business.
III the endless chain upon the treasury
caused by the redemption and reissue OF
greenbacks Is continual drain upon the
gold reserve and a severe strain upon the
government, how much more of a drain and
strain will the $3.50, 100000 of new obliga-
tlons upon that reserve impose?
The government now has the power to
call an absolute halt to a raid upon It's
nv fho hrar r.
and treasury notes, but If silver is made re-
deemable in gold it cannot do so until it
impounds also the $50, 600, 600 of silver dol
lars and certificates. When there is run
on the treasury for gold, it is the salvation
of commerce and the reserve to have in
circulation currency which imposes no
further demand on that metal. The bill will
plunge the government deeper into the
banking business.
Third, it will facilitate the expectation Of
gold.
LAS the $3s6,OO0,OOO of our currency re-
deemable in gold is scattered all over the
country, 1t is difficult for large exporters
or gold to collect sufficient of that currency
to present for redemption. But If silver GER
tificates, which form the great bulk of the
currency that circulates, can be presented
for payment in gold, then it becomes an
easy matter to compel the government to
furnish all the gold expectation.
with other nations imposing restrictions
upon their expectation of gold, and we IA
cilitating our expectation Of the same, we
are likely to lose great quantities of that
lifeblood of commerce
Fourth 1t will cause the retirement Of
the silver dollars and produce either violent
contraction of the currency or the substitu-
tion Of printed promises to pay. 1t will
convert assets into liabilities, dollars into
debts.
Fifth, other things remaining as they
are, such a measure would cause a fall in
prices Of all commodities and other prop
erty. Failing prices produce bankruptcy
and panics.
No nation on the face of the globe re-
quires its exchequer to exchange gold for
silver. This is a new policy in the treat
ment of the precious metals. Why should
this, the greatest silver producing nation in
the world, be the first to strike a blow at
one of its greatest industries. All repre-
sentatives, regardless of political affilia-
tions. should condemn such reckless legisla-
tiOn''