The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-20
And Predicting an Endless Chain i
Gold Be Made interchangeable
with Silver Dollars.
MINORITY REPORT ON BILL
MIR. SHAFROTH MAKES USE OF w.
j. BRYAN'S THEORIES.
Discussion of the Philippine Tariff
Measure to Begin in the Senate
Probably To-Day.

Special to the Indianapolis Journal
WASHINGTON, Jan. 19.-Democrats of
the House of Representatives profess to
see in the Hill bill another attempt to dis
credit silver and will fight passage of the
measure. The proposition to make gold
and silver interchangeable is condemned
as an effort on the part of gold bugs" to
plunge the country into a whirlpool of
financial woe. The same members of the
House, or their predecessors, like w. j.
Bryan, have fought every measure that
was intended to strengthen the financial
condition of the government and have sub
mitted a multiplicity of wild cat" schemes
which they would have foisted on the
country if it had been possible. Their atti-
tude the bill that is aimed to perma-
nently establish the gold standard. there
fore, is not surprising. The minority mem
bers of the committee on coinage, weights
and measures will tomorrow present their
report on the bill, directing the secretary
of the treasury Ito exchange gold for legal
tender silver dollars" The report, as pre-
pared by Mr.. Shafroth, lays down the fol-
lowing general propositions:
"Our government has never conceded the
right 10 the holder of silver dollars TO de-
mand from the treasury gold therefor, nor
TO the holder of gold 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 mea-
sure should not be enacted are given:
First-It will require a large increase of
the gold reserve of the treasurmy as if the
obligations upon a reserve are increased
the reserve should be correspondingly en-
larged. If it requires $3.50, 900, 900 of gold to
act as reserve for the redemption of $685.
600, 600 of United States notes called green
backs and $40.2SS,0S6 of treasury notes
issued under the Sherman act, will it not
take at least $500 10000 in gold, says the re-
port to act as a reserve when the 530,-
1851 of silver dollars and silver certifi-
Gates are made a direct charge upon that
reserve?
SecOnd-It will create new endless chain
upon the gold reserve of the treasury and
thereby plunge the government deeper into
the banking business. If the endless chain
upon the treasury caused by the redemp
ton and reissue Of greenbacks is a continu-
al drain on the gold reserve and severe
strain upon the government, how much
more of a drain and strain will be the $780,
100000 of new obligations upon that re-
serve impose? The government now has
the power TO call an absolute halt to a raid
upon its gold reserve by impounding the
greenbacks and treasury notes. but if sill
yer is made redeemable in gold. it cannot
DO so % until impounds also the 5SOooo,o 600
Gates 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. As the 1885,. 600 600 of our currency re-
deemable in gold is scattered all over the
country, 1t is difficult for large exporters of
gold TO collect sufficient of that currency to
present for redemption. But if silver GER
tihcates, 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 for expectation With
other nations imposing restrictions upon
their expectation of gold. and we facilitat-
ing our expectation of the same, we are
likely to lose great quantities of that life
blood of commerce.
Fourth-It will cause the retirement of
the silver dollars and produce either violent
contraction of the currency or the substi-
tuition of printed promises to pay. 1t will
convert assets into liabilities, dollars into
debts.
Fifth-Other things remaining as thew
are, such measure would cause fall in
prices of all commodities and other prop-
erty. Failing prices produce bankruptcy
and panlcs. No nation on the face of the
globe requires it's exchequer to exchange
gold for silver. This is a new policy i'm the
treatment OF the precious metals. Why
should this, the greatest silver-producinS- o.
nation In the world, be the first to strike .
blow a. one OF its greatest industries? All
representatives, regardless of political af-
hliations, should condemn such reckless
legislation.