New-York tribune., 1902-01-20
AN ALLEGED DANGER.
EXCHANGE OF SILVER FOR GOLD DE
NOUNCED BY DEMOCRATS IN HOUSE.

Washington. Jan 19.--The Democratic mem
bers OF the House Committee on Coinage.
Weights and Measures have agreed on a mi
rority report 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 Mr. SHAFT
roth.
The report takes the position that the passage
Of the bill is certain 10 produce financial dis
turbances. The following general proposition is
laid down:
Our government has never conceded the right
to the holder of silver dollars 10 demand from
the Trea asury gold therefore nor to the holder II
gold 10 demand silver dollars therefor. Such de-
mands always have been refused at the Treas
ury. 1t is the notes and bonds OF the govern
ment that payable in either gold or silver at
tho option OF the holder.
The following reasons why such a measure
should not be enacted are given:
First-It will require large increase Of tn
gold reserve OF the Treasury, II the oblied -
tiOns upon reserve are increased. the resery Q
should be correspondingly enlarged. II 1t re-
qlSres $150.0O0,0O0 of gold TO act as a reserve
for the redemption Of S346,oUo,0o of United
States notes called greenback and $40 2S3 0S6
OF Treasury notes issued under the Sherman act,
will il not take at least S3lNOnb.OD in gold to
act as a reserve when the $3.50 49, ti17 of silver
dollars and silVac certificates arc made direct
charge on that reserve?
Second--It will create a new endless chain
y
thereby plunge the government deeper into the
banking business If the endless chain upon
the Treasury caused by the redemption and re-
issue Of greenbacks is continual drain upon
the gold reserve and severe strain upon the
government how much more of a drain and
strain will the S33OOOOOOO OF new. obligations
upon that reserve impose
The government now has the power to call an
absolute halt TO a raid upon its gold reserve by
lmpounding the greenbacks and Treasury notes
but if silver is made redeemable in gold it can
not do so until it impounds also the $5300 600
of silver dollars and silver certificates. When
there is a run the Treasury for gold ii is
the salvation of commerce and the reserve 10
have in circulation a currency which imposes
no further demand on that metal. The bill will
plunge the government deeper into the banking
business
gold AS the 1856, 600 of our currency re-
deemabIc in gold is scattered all over the coun-
try, 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 circulates
can be presented for payment in gold. then il
becomes an easy matter compel the govern
ment to furnish all the gold for expectation
With other nations imposing restrictions upon
their expectation of gold and we facilitating
our expectation of the same, we are likely TO
merce.
Fourth-It will cause the retirement of the
silver dollars and produce either violent con-
traction of the currency or the substitution of
printed promises to pay. 1t will convert assets
into liabilities. dollars into debts.
Fifth-Other things remaining as they are
such a measure would cause a fall in prices OF
all commodities and other property; falling
prices produce bankruptcy and pancs.
No nation on the face of the globe requires its
exchequer to exchange gold for silver This is
a policy in the treatment of the precious
metals. Why should this, the greatest silver
producing nation in the world be the first to
strike blow at one of its greatest industries?
All representatives, regardless of political afli-
ations, should condemn such reckless legislation.