Telegram-herald., 1886-08-21
no CHANGE OF POLICY
What Secretary Falrchlld
Says About Bond Calls
.THE fAULIS Or N08RIS0s'S MEASURE
Calls wil be Made as Often as the
Condition OF the Treasury Viii
Warrant-Ho Precise Limit
Can bs sised.

MA-HISoloN. Aug 80 The Ntr iais eY
ealns publishes an interview with A lilg
Secretary a. lAe Treasury taircliid on The
subject of bond calls When asked ID the
Frequent calls of late DAD NOT indicate d
change of policy on the part of the admin
-tr4l1n wllh respect - bond calls be re
plei "N0. n j. nos change Oi policy
The receipts are unusually large just at this
ume silver is being absorbed by the peo-
pie pretty We.l and the conditions generally
are quite favorable for calling the
bonds al TINS time. The call does
not affect the money market
enough 90 make 10 a motive. as the bonds
are mostly held by the national banks. buJ
what iittle effect 10 has IS hopeful and the
public may a. well ger the benefit 0f it
To suggestion that II looked like follow
ing ont the Morrison resolution, the Sscre
fary said. with a smile, that it went far be-
v0ud that lie denied that the calls were
made for political effect. The reason 5eCre-
tary Manning had not made such calls was
that the conditions were not favor
able The thing had been over
done when he assumed control of
the department, and Mr.. Mccullough was
in doubt about the result when he went
out. Secretary Manning had 90 wait ull
the condition of the treasusY would warrant
a further reduction OF the debt To have
gone on calling bonds with the treasury in
the condition 10 was in. might have reduced
the money fo me single silver standard it
was not safe 20 call more bonds at that
time, II the two metals. gold and silver
were 90 be kept on an equality. In SUD
stance. he said the situation is just this
The Government has got gold, silver aud
paper money, the fractional currency and
silver certificates In paying Olt il
must allow the payee the option 10 select
which be prefers Whichever he wants gold
silver or paper be can have. The one is as
good As the other aud be will take that
which = most convenient for his use. but if
a scarcity of one OF these moneys precludes
this selection, III the Government hands out
silver, for instance, aud says Here YOU
must take this, 1t IS the only money / have.
the condition is changed For instance
say the Government pays a man in this way
hundred thousand dollars in silver.
lie has no use Tor more
than $1,000 He cannot use
more than that in his business
or distribute Il among the people. lie has
the other 30 900 on his hands. He must 90
one or two things with it-buy property or
put II on the market. Ii be Ouys property.
the man ne buys of does not want the sill
yer any more than be does. He must
therefore pay more for the property in that
money. but 10 Is most likely that he will
put the money on the market The public
has absorbed all 10 can, so there is
no demand for silver. Ii must
70 a. a discDunt-say Of I'VE per
cent. bat it doesn't stop there. This
discount runs through all the silver in cir
culat0n and all there is in the treasury
We then have deprecated currency
So you see We cannot run the risk of this
The treasury must be the reservoir i'm which
Is held all me money that cannot be- ab-
sorbed by business aud by the people. The
natural condition of equality between the
money must be preserved The coinage of
two million silver dollars per month was
an unnatural condition made by statutory
action. To balance this the treas
ury surplus had 10 be increased
so as TO provide for that which could not be
used. Even if there is no more silver than
the people want. II takes time TO dis
tribute II and 10 must be held in the treas
urv and let out 10 meet demands il must be
let ont just as fast as the people will absorb
it no faster. The department had 10 wait
before making large bond calls until the
condition Of the treasury was such as to
ALLOW the choice of money. Now the re-
ceIpts Of the Government are large. while
the people are taxing TOE silver pretty Wei
The calls are by wsv OF experiment We
wili call as much ss we can.
Thus far the calls have amounted, since
the first Of July. 20 S37 900 0o0 The prob
ability Is that the calls during the year will
very far exceed the amount necessary for
the sin king fund They will be made as
often as the condition Of the treasury will
warrant There is 20 fixed limit No one
can tell three months aheal what can be
done I'm the wsv OF bond calls The trouble
with the Morrison resolution was as said
in Congress that It made il obligatory to
call inst so much This cannot be done
It is impossible TO tell just what TIE situa-
ton may be- a, any future time.