The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-10-14

existing law. Congress finally did this
last in April, when at once resumed
THE PURCHASE OF BONDS,
buying, between April II and June 80
last, with surplus, for cancellation, 500,
0lg65O, at premium Of S5,4lS, S26. The
sinking fund required for the fiscal year
to end June 30, next, is S47, Sli, 1901 90 OF
which S37 ,O24, 0S602 was provided for be-
tween July and September % by the
purchase of bonds, $50, 49,, 900 being prin-
cipal and SO, $50, 036. y premium. During
the first few days OF this October, the re.
malnder has been more than met
10 resume, up to the LIST of
this October all Of the 8 per
cent bonds outstanding at the begin
ming of this administration, Sl94, 100, 500,
had been retired, and in addition SSl, 923-
24O OF Is and 4! per cent. bonds, at cost
on premium of Sl4,Sl0, 1850, or in all
there had been applied to the retirement
and purchase of bonds $500, 1924, $50,
and the total interest bearing debt appear
ing in the September debt statement is
under the 81 1000, 900, 600, mark, the first
time in generation that il has not taken
ten figures to express it. And this Gen.
Harrison calls nursing the surplus" II
all Republican secretaries had been as
wise as was Secretary Window, all OF our
bonds would now be subject TO call, and
the whole national debt could be ex-
tinguished in about eight years; but they
were not so wise. and il the revenues are
not reduced our only recourse will be the
purchase Of bonds ut ever increasing
premiums. | observe that the Republican
candidate for President seems 20 favor this
latter course. One reason which he gives
for this is that II il is well for men TO hold
the bonds ut high prices; then II is well
for the government 10 buy them ut
high prices. But how is il when il
is well for the holders to sell them?
Is II, then, well for the government 10 buy
them? Under this logic no bonds would
ever be bought Probably the same
mental state induced this and his other
observation that a study of maxims, not OF
markets, caused the belief that Dutch
added 10 the cost of dutiaDle articles.
Government finance cannot be successfully
conducted II such logic and the love OF al
Iteration are TO take the place OF sound
business judgment. As a matter OF fact,
you all know that IL is sometimes well for
some men to loan or place some OF their
money where II Will be perfectly secure at
low rate or nj no rate of interest. You
also know that some men can aud some
cannot employ their money better than
loaning 1t 10 government, and you know
that II is Tor the interest OF some bond.
holders 20 sell and Of others not to sell
their bonds To the government at high
prices. But all this is triling with seri.
Gus subject. OF course ! believe as does
every man OF sense, that the best use
which can be made Of
the ACCUMULATED SURPLUS,
which We will not and cannot use
Otherwise, is to buy interest bearing bonds
with IL, aud stop interest charges: but il
takes two to do this, one to sell and one To
buy. The Secretary of the Treasury. who
wishes to buy, must watch Tor him VINO
wishes to sell aud make the best bargain
that he can Tor the government. United
States bonds are not lying in every bank
and every brokers' office here in Wall
street, ready to be sold ut reasonable prices
o. the first conner. ~ | have reason to
know. Nor are they hanging on every
blackberry bush in the country. What
would YOU think OF a Secretary OF the
Treasury who would rush into the street
crying 81 have 500, 900 TO spend Tor
bonds, aud | nm TO have another slOO,-
OOJ,OJO before the fiscal year is oui, and
am likely 10 haze SlOO.OJO,OOJ each year
for the same purpos. must have them
at once. right of. / want To stop inter-
cst?' How much interest do YOU think
that be would save by that performance?
Unfortunately. IN the present situation VI
our national inauc,s, IL is often not qups.
ton OF what may be best for Tie govern
mCnt IN dJillrs and cents, but how 10
avert the universal ruin which our grossly
excessive revenues threaten. and therefore
prudent secretary will not lry TO
buy too many bonds during tie
dull season. lest lac absorb al
OF the salclblc bonds, aud have no means
81 releasing money In the active DAYS.
when money must bc had 10 pay the
farmer for his crops, aud thus prccipi,aio
financial panic, for experience wall have
taught the secretary that what causes
paniCs IL not 80 much the Sjn,ON, 900 or
SlOO, 100000 accumulated In the treasury.
this h bad NJ all times, and yet bushes can
adapt itself to almost any amount u. Cirau-
ln,ing mcliuml ~ the 5000 or $1,000
taken daily from the channels 1f business
ut q season Of the year when every dollar
| h needed 10 transact business la lh1 way
and on the scale Ia which the community
has accustomed itself Thus II vii b' seen
I that secretary in these times must think
not alone Of the hundreds u thousands
I ol dollars OF interest whirlrcau be- saved
/ 10 tho country. but alsD OF the
millions anl hundreds 90 millions which
/ may BE- saved by managing the public
/ finances iu such d way as 10 wari ~ panic
aud ruin, while the country awaits the
pleasure Of Congress, which alone can
curt the evil aud permanently protect the
country Thus INFINITELY and iu un clu-
mcntary way have gone over the history
and policy 0i bond buying aud drplsitiug
| la national banks, because such pgr ,tcut
| efforts afc male In high quarters iD hriug
aud mIslcld the public mul on these cub.
| iccls Ia the serious injury Of the public
/ it-cli lie then quoted bis lss. report 60
I Congress In Uwfd 90 the purchase OF
I bonds IN which hc said: Deposits Ia
| national bank repositories as means Ul
| keeping circulating media available Tor
/ hutiuCs purposes. b. resource ut hpHt
| worry limited under present laws aud ought
| not % Do used except in exceptional cir.
/ cumstanccs, such as have existed OF late,
/ aud because there b. NJ better thing
| o. do in rpiprCuco 10 tl.#, uu
| said. "sinrc preparing the foregoing
/ have seen in thc newspapers TIA, Mr.
. Blaine has seen 10 io Try his well known
xiii IN dect,ing the pnblic upon COD.
| question Of deposits IN national banks. 10
says that with money at per cont dr
post OF sGO,OJO,OOj would De- : gmIuily t'
the national banks holding the money o
| s3,OJO,OOOa year That j. not true. lh,
profit Ia the banks could not exceed $500.
ODJ on s0O,0uOJJ OF government dcpJsiu