Los Angeles herald., 1891-06-05
PERPErUATING THE PUBLIC DEBT.

fEhfETuATiNG The PUBLIC DEBT.
The billion-dollar congress is alread,
beginning to bear fruit of the Dead-se,
apple order. A condition of things tina
was predicted by Democrats as early al
last September has already materialized
The Republican party, with full swing a
the public purse, has not only wiped ou
the surplus left by Democratic admin
istration, but in spite OF the most enor
NOUS appropriations ever made by any
congress since war times, the treasury il
on the verge OF bankruptcy.
In the face OF the crisis which unpre
cedented extravaganza has brought up
on the country, it is necessary that some
thing should be done to save the party
from the condemnation it deserves, so 6
system of financial bamboozling has
been inaugurated. In addition to the
$57, 900, 900 surplus the Republicans in
herited from Cleveland's admin
istration, Mr.. Manning had,
at an early stage of his incumbency as
secretary of the treasury, placed apart a
sum amounting to about $70,000,000 to
meet contingencies that might arise in
the liquidation of the public debt. Har-
rison's secretary found way, by intro
ducing new system of bookkeeping, by
which this reserved fund was also made
available to the uses of the Republican
administration, and it may also be added
to the actual Cleveland surplus that has
been wiped out.
But the extravaganza of the billion
dollar congress was equal to much
greater things, and whilst it squandered
the peoples money with unprecedented
prodigality, it also incurred deficiencies
which will yet have to be met.
The 41s per cent. government bonds
fall due on the first of September. Sec
retary Foster foresees the possibility of
redeeming them, and has taken the very
course which it was predicted months
ago by Democrats the administration
would pursue. 1t has been cherished
policy of the millionaires and bond
holders who control the destinies of the
Republican party to bring about fnan-
cial condition that would create an ex-
cuse for perpetuating the public debt.
This has been the wish OF Wall street
and what Wall street wishes is what the
Republican party wants.
Secretary Foster is now engaged in en-
tering the first wedge that will in the
end split the redemption policy in
pieces. He sent out circular to the
bankers few days ago saying that the
government would prefer to extend the
time on the Az per cent. bonds, and
make them payable at the pleasure of
the government, with the interest re-
duced to per cent. 1t is needless to
say that the bankers know as we'll as
Secretary Foster that there will be no
money to redeem the bonds in
September, and that they can
not legally draw any interest what
ever after that time. The govern
ment is not like an individual whose
paper may be protested after it falls
due; it has prerogatives a citizen has
not. The holders OF the unredeemed
bonds would find themselves after the
list of September with securities OF an
uncollectable character, and that could
only be rehabilitated with their full
value by an act of congress. No one
need, therefore, be astonished that at
conference between the bankers and
Secretary Foster yesterday the former
endorsed his plan, and the Az per cents
will be refunded indefinitely at the rate
of per cent. interest.
This is the first stage of the scheme to
perpetuate the public debt. Unless the
Democratic party should become su-
preme in all branches of the govern
ment, there is no way in which the
bonds falling due from this time on can
be redeemed. The Republicans have
fastened upon the country measures of
ter, which, coupled with the decrease in
customs revenue that will follow the
tariff, can. only be remedied
by transfer of all the powers of the
government into the hands of the party
Of reform and retrenchment. For years,
however, there will be a Republican
senate to defeat the remedial measures
the Democratic party would apply, even
if it had the presidency as well as the
control of the house of representatives.,
10 that the outlook for further redemp-
Jon of the outstanding bonds is not an
one.
On the I'd of September last debate
ook place in congress in which this
cry posture of affairs was clearly fore
hadowed. Hon. Joseph d. Sayers, of
exas, in speech remarkable for its
luminous exposition Of the reckless ex-
.ayagance Of the appropriations rushed
trough by the majority party, warned
ne house that the governmentwas rapid