New-York tribune., 1902-12-04

trx and f igeresf Charge would than cover
ut If If should be deemed unwse to permit the
loaning os public funds without specific seeurlTy & II
se5ay MY Togd be % 70 as o% Upon
security. If such authority had existed during 1I
80 e6o Which was PAID to the owners Of gov-
ernent bonds would have been bronebout the
country and the relief afforded you'd have been
equally permanent and more widely ap'tecia'eu
THE CURRENCY.
Any coin that the government 7 anq
Will be worth exactly the sarne as the material
u BY act OF Congress approved February z ls5s
and by second approved March T. 1so ffe ne
'9S be that PI of f as gains Of gold 800 @ These acts
have been referred to estabiishing ana s9+e
In l7a2 the Congress authorized the purchase OF
bullion sn6 The c0nage ss oI cent cents " we're made legal
tender In limited amount but It was deemed uIlsaLe
Of Of cents At more II tRan their metallic value and
they therefore made rsdeemaPe zen tb am IN Tes
son, has been made with respect TO all minor
In 1858 the Congress authorized the coinage on
government account of subsidiary silVer & CONS ID ID
coin. and made the same legal tender in limited
amount. but it was subsequently deenlea Ensalei hi
without special provision for their redemption.
what Was Known as United States notes popularly
called -greenbacks.'' and made the same. as he
But because there was no provision for their re,
demption in coin their purchasing power uctu3Iea
very materially, Notwithstanding The 1act that M tEer
debtpaying power remained the equivalent or gold
snbss9uentg the m s redeemabe cur
rency. made special provision for the redemption
In 1875 a very serious financial panic arose, which
threatened every commercial and INDUSTRIAL lhsti,
history OF this panic is quite universally recog-
nized tnst Il the Pos6 @ l OF {p m T0s Of o
was the prime factor which led 10 the boarding OF
gold. There was no occasion to fear that green.
in coin, for this had been expressly provided put
there was occasion to fear that they might be
redeemed in unprotected silver worth "a cents in
Subsequently on March A. 1900 the Congress.
recognizing that the parity Of the demand obliga-
standard coin expressly provided for the redenp-
No provision has get been made for the redemption
outsta9ng m in round figures 1 SO 900 o coined silver
dollars Of material worth not 81 cents each as in
press provision of law TO protect the holder should
pu5hc pup CT, revenue again fan below current expenses
DANGER IN PRESENT SYSTEM
It is true that by acts of Congress silver is re
same law existed in 1898, and it reserves to the
R eTeos fe tn afcep To the pay in st EsT R a r - o
!at II me solTency OF business man could be es
cations on debts due to himself while refusing to
redeem the same in any money his creditors might
remained great creditor and a small debtor. but
afrerward. hl1SiueSS
standing fail to suffer.
National bank notes are secured by special de-
post of government bonds the principal and inter
est Of most of which are payable in gold, but the
notes themselves are payable in lawful money"
than 60 per cent fat
In 1898 there outstanding, roundly. $546o 900,
o09 in United States notes and Sl47000000 in Treas
ury notes. all redeemabla in coin. and the cheap
deemed was worth q cents in gold there Was also
slS000000 national bank notes, payable in law
In silver worth 64 cents. There also outStand-
ing 4290oe0O silver dollars worth the same. There
was. therefore. approximately IN the aggregate,
S5000oo000 of unprotected fiat in these three forms
OF money. Since that time United States notes and
Treasury notes have been made redeemabie by
law iq gold but the present national bank issue of
ciudes silver, worth not Oh cents, but 50 cents and
there are now outstanding $50 0o0,010 silver dollars
tected fat at this time is therefore $565ooOooo. OF
So9 more .,5fs than in lSs3 ,, .,,e,a+.
been treated as gold coin and silver certificates as
Not only current obligations of the government.
but all contracts between citizens and all bills OF
sa oeg r e a the On oon of
the payor fexcept when otherwise expressly pro-
at fully 35 per cent profit to the government the
bullion in which is worth less than 20 cents on the
The peril involved in this condition may avert
that precipitated the disaster Of 1893 escaped popu
lar. though not universal. recognition so long as
son assigned why the exchangeabty of gold and
1 silHer snouo noC ne eitaotseu IS 'se & i
credit would be endangered This comedies the ar
ernment which has coined this Silver and profted
thereby shall be protected regardless of possible
danger to the citizens and the peril to business
The statute now provides that parity between all
Secretary of the Treasury expressed the opinion
that somewhat similar statute authorized the re-
tion I submit it would be better to express the
same in specific 1t has been found necessary
in order to maintain the parity OF greenbdckS and
Treasury notes. expressly provide for the re
demption thereof in gold. / not unmindful Of
the claim that parity will naturally continue so
long as the government accepts silver in payment
Of revenues If this be true. there would be
danger to the government should the two coins be
I believe the Treasury of the United States would
be in less danger with express provision for the
exchanged bility of gold and silver than under ex
listing laws. At the present time the Treasury
furnishes all the gold needed. whatever the pur-
nose 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
ali forms of money were made the equivalent OF
gold then all occasion for boarding one coin more
than another would vanish, and the danger TO the
creased The ability Of this government to fulhl
its promises has been questioned. but doubts
arising from unexpressed policies have caused
Should It be deeme wise TO provide for the
changeabty of gold and silver, then national bank
notes might be made payable in gold In this way
there would be shifted to the banks the greater
burden Of furnishing gold for domestic and for
export, and this, in the event of unfavorable
f be OF f It woxd q Be anfesty un
Just, well as Illogical % require banks % & to re-
silver remains irredeemable and interchangeable.
There can be no valid reason. legal, economic
deem in gold all its own obligations whether they
be represented in paper lo per cent nat or IN s,
pressiy guarantees it's own Issue, objection can
appropriately be urged against requiring banks to
pag thsd a0tss iR Be- eaned M se specially with
respect our foreign commerce, by making every
and between individuals, payable in money every