The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-04

cent. profit to the government. the bullion
dollar.
THE peril involved in this condition may
be averted for a time, and possibly for all
time. The evils that precipitated the disas-
ter of 1893 escaped popular, though not uni
versal recognition so long as public reve-
nues exceeded expenditures. The reason as
signed why the exchangeabihty of gold and
silver should not be established is that 1t
would entail so large an obligation that
the national credit would be endangered.
This comedies the argument, but pleads the
preference that the government which mas
coined this silver and proited thereby
shall be protected regardless of possible
danger to the citizens and the peril to bust
ness.
MISUNDERSTANDING.
The statute now provides that parity be-
tween all forms of money shall be main
tanned. A former secretary of the treasury
expressed the opinion that a somewhat sim
liar statute authorized the redemption of
silver in gold. If that be the intention, I
submit it would be better to express the
same in specific terms. 1t has been found
necessary, in order to maintain the parity
of greenbacks and treasury notes, to ex-
pressly provide for the redemption thereof
in gold. l am not u%pmindful of the claim
that parity will naturally continue so long
as the government accepts silver in pay
ment of revenues. If this be true, there
would be no danger to the government
should the two coins be made interchange
able.
II believe the treasury of the United
States would be in less danger with an ex-
press provision for the exchangeability of
gold and silver than under existing laws.
At the present time the treasury furnishes
all tie gold needed, whatever the purpose
for which 1t is demanded, and certainly no
more would be required for commerce, and
not as much for boarding, should all doubt
as to the status of silver be removed. On
the contrary, if all forms of money were
made the equivalent of gold. then ali occa-
sion for boarding one coin more than an
other would vanish, and the danger to the
treasury would be diminished instead of be-
ing Increased. The ability of this govern
ment to fulfill its promises has never been
questioned, but doubts arising from unex-
pressed policies have caused more than one
crisis.
SHOULD it be deemed wise to provide for
the exchangeability of gold and silver, then
able 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 unfa-
vorable balance of trade, might prove of
great advantage to the government. 1t
would be manifestly unjust, as well as il
logical, to require banks to redeem their
notes in gold so long as legal tender silver
remains irredeemable and interchangeable.
There can be no valid reason. legal, eco
nomic or equitable. why the government
SnOulu not redeem IN SOlQ all It's own ODll-
cations, whether they be represented in
paper, loo per cent. fiat. or in silver, go per
cent. fiat. When the government expressly
guarantees it's own issue, no objection can
appropriately be urged against requiring
banks to pay their notes In gold. On the
contrary, / see many advantages to be
gained, especially with respect to our for
eign commerce, by making every obligation
between the government and the people.
and between individuals, payable in money
every dollar of which shall be the equiva-
| lent of Dan grains Of standard gold and
on which a demand for this equivalent can
be directly or indirectly predicated.
CIRCULATION.
On the subject of banking the report SAYS
1.-The frequent purchase and retirement OF
bonds renders the amount available for cir
c~ulation gradually less. while a rapidly
growing population, additional banking ia,
c~ilities, and expanding trade suggest the
need of an ever-increasing circulation.
therefore believe the time has arrived wher
il will be necessary to adopt one of two poll.
cies: either the government debt must be
perpetuated as a basis for national bank
circulation. and additional bonds issued as
occasion may require. or some other sys-
by the act of Congress, approved March
IA. 1900. the department is authorized 10 re-
fund all bonded indebtedness maturing priol
to 1926. This discretion would have been ex-
ercised as far as possible but for the fac
that if present conditions continue the gov
eminent will be in funds sufficient TO dis
charge this Indebtedness at the time IL ma,
lures. The question has. therefore. pre-
scented itself for solution: Shall the depart
ment. as the agent OF the government, Sc
cure additional time upon an indebtedness:
not yet due. when there is fair prospecr
that IL can be met according to its terms?
There is one other reason why the re
funding of this Indebtedness is deemed O.
doubtful expediency. Whenever there is
surplus OF public funds in the treasury, ant
financial conditions make it advisable tina
Ii be released, il becomes necessary to pur
chase government bonds. AT present Their,
is no other way to put accumulated surpIu,
revenues promptly in circulation. The avail
able bonds are not held by banks or b,
business concerns. So, whenever the gov
eminent is a purchaser. the price is prompt
ly advanced. This is not mentioned for tn,
purpose OF criticising those who may hole
bonds as an investment or for speculation
but simply TO state an important factor Ii
the equation. Should the bonds falling du,
I'm the near future be permitted TO mature
: they can be extended at a very low rate o