The age-herald., 1902-01-20
Democrats Object to Swapping
 Gold for Silver
WOULD CAUSE DISTURBANCE
Government Has Never Conceded Eight to Holder of Silver Dollars to Demand Gold Therefor
 Creates Endless Chain.

Washington. January 19.-The Demo cratic members of the House committee on coinage, weights and measures have agreed on a minority report on the bill directing the secretary of the treasury ito exchange gold for legal tender silver dollars, and the report will be presented to the House tomorrow by MT. Safroth, The. report takes the position that the passage of the bill is certain to produce financial disturbances. The following gem eral proposition is laid down:
 "Our government has never conceded the right to the holder of silver dollars to demand from the treasury gold therefor, nor to the holder of gold to demand sil- yer therefor. Such demands always have been refused at the treasury. It is the notes and bonds of the government that are payable in either gold or silver at op- tions of the holder
 The following reasons why such a measure should not be enacted are given:
 l. It will require large increase of the gold reserve of the treasurer, as. if the obligations upon a reserve are increased, the reserve should be correspondingly en- larged. If it requires $50, ,0O0 900 of gold to act as a reserve for the redemption of S346. .000 GOO of United States notes called greenbacks and $40 2S3.0S6 of treasury aotes issued under the Sherman act, will Mt not take at least $500, ,O00.O00 in gold, Fsays the report. to act as a reserve when 1.-the $53O,O0O,000 of silver dollars and silver Hcertificates are made direct charge upon Ithat reserve?
 Creates an Endless Chain.
 9 It will create a new endless chain upon the gold reserve of the treasury, and thereby plunge the government deep CT into the banking business If the end ! less chain upon the treasury caused by the redemption and reissue of green backs is a continual drain upon the gold reserve and a severe strain upon the gov ernment, how much more of drain and strain will be the $530 ,Ooo0o0s of new obli- gations upon that. reserve impose? The ! government now has the power to call an absolute halt to raid upon it's gold reserve by impounding the green backs and treasury notes, but if silver Is made redeemable in gold it cannot do so until it impounds also the $53O 900 of silver dollars and silver certificates. When there is run on the treasury for gold 1t is the salvation of commerce and the re- serve to have in circulation a currency which imposes no further demand on that metal.
 3. It will facilitate exportation of gold. As the s3S6000.000 of our currency re- deemable in gold is scattered all over the country, it is difficult for large exporters of gold to collect sufficient of that cur rency to present for redemption. But If silver certificates, 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 exportation.
 Lose Life Blood of Commerce.
 With other nations imposing restrictions upon their exportation of gold and we fa- cilitatng our exportation of the same, we are likely to lose great quantities of that life blood of commerce.
 4 IL will cause the retirement of the silver dollars and produce either violent contraction of the currency or the sup- stitution of printed promises to pay. It will convert assets into liabilities, dollars into debts.
 k 5. Other things remaining as they are, Aich a measure would cause a fall in Mices of all commodities and other prop 8ty. Falling prices produce bankruptcy Uld panics. No nation on the face of the lobe requires its exchequer to exchange
 sld for silver. This is a new policy in the eeatment of the precious metals Why tould this. the greatest silver-producing ttion in the world. be the first to strike tblow at one of its greatest industries.
 EAll representatives, regardless of po-
 kicai affiliations should condemn such
 tkless legislation.