The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-01-20
DEMOCRATS OF HOUSE COMMITTEE
ON COINAGE WILL PRECIPI-
TATE THE CONTEST
CAUSE, LEGAL TENDER DOLLAR
EIinority Takes the Position That TO
Pass Proposed Curtiss Bill Is to
NeceSsitate an Increase of
the Gold Reserve
FIVE REASONS FOR OPPOSING IT

WASHINGTON, Jan. 19.-The Demo-
cratic members of the house committee
on coinage, weights and measures have
agreed on q minority report on the Cur
tiss hill directing the secretary of the
treasury Ito exchange gold for legal ten
der silver dollars and the report will be
presented to the house tomorrow by Mr..
Shafroth.
The report takes the position that the
Passage of the bill is certain to produce
financial disturbances. The following
general proposition is laid down:
Our government has never conceded
the right TO the holder of silver dollars
TO demand from the treasury gold there
for, nor to the holder of gold to demand
silver 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 OptiCn Of the holder"
The following reasons why such a
measure should not be enacted are given:
Must Increase Gold Reserve.
First-It will require a large increase
of the gold reserve of the treasury, as if
the obligations upon a reserve are in
creased the reserve should be correspond
ingly enlarged. If it requires $150,000,000
OF gold to act as a reserve for the re-
0emptiOn of $346, 100000 Of United States
notes called greenback, and SAC, ,2S3, ,OS6 Of
act viii it not take at least $300000,0G0 in
gold says the report, to act as a reserve
when the $3.50 1872. .617 of silver dollars and
silver certificates are made direct
charge upon the reserve?
.SecOnd-It will create a new endless
chain upon the gold reserve Of the treas
Jry and thereby plunge the government
deeper into the banking business.
If the endless chain upon the treasury
caused by the redemption and reissues of
greenbacks is a 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 obligations upon that reserve i'm
pose?
Government Can Call Halt
The government now has the power to
call an absolute halt to raid Upon its
gold reserve by impoUnding the green
backs and treasury notes, but if silver is
made TedeeTnable in gold it cannot do sc
until it impounds also the $3.50 000,000 OF
silver dollars and silver certificates
When there is a run on the treasury for
gold it is the salvation of commerce, and
the reserve to have in circulation cur
rency which imposes no further demand
on that metal. The bill will plunge the
government deeper into the banking busl-
ness.
Third-It will facilitate the expectation
CT gOld. AS the S3S6, 600, coo Of our cur
Tency redeemable in gold is scattered al
over the country, it is difficult for large
exporters of gold to collect sufficient OF
that currency to present for redemption
But if silver certificates, which form the
great bulk of the currency that circu-
lates, can be presented for payment il
gold, then it becomes an easy matter tC
compel the government to furnish all The
gold for expectation.
Gold Exports inevitable.
With other nations imposing restric
tions upon their expectation of gold, an(
we facilitating our expectation of tn,
same, we are likely to lose great guam
titles of that lifeblood Of commerce.
FCurth-It Will cause the retirement o.
the silver dollars and produce either vio
lent contraction of the currency or tn
substitution of printed promises to pay
1t will convert assets into liabilities, dol
lars into debts.
Fifth-Other things remaining as the,
are, such a measure would cause a fal
in prices produce bankruptcy and pan
les.
No nation on the face of the globe re
QUires it's exchequer to exchange gold TO
silver. This is a new policy in the treat
ment Of the precious metals. Why shoult
this, the greatest silver producing nation
in the world, be the first to strike bloy
at one of its greatest industries? Al
representatives, regardless of political af
1iliations. should condemn such reckles
legislation.