Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1891-05-14
EMERGENCY FiNANCjERING.
A Strange Revelation Of Republican
in,

Statesmanship.
In many ways the people have wit
messed wonderful displays of agility on
the part of republican statesmen in
shaping legislation Ion a pinch" 1t
has been popularity of latter-day
republicanism to frame laws which
would necessitate expensive avoidance
of calamity by the adoption of expedi-
ents calculated to tide the people lover
PINCH It was republican fnancier-
ing that made large amounts of govern
ment bonds nominally fall due in
si1srle year. Then, when the govern
ment faith was to be preserved, the
people were told that there was danger
of "a pinch and it was necessary to
refund these bonds in others on which
they would have no option as to pay
ment for a long term of years. 1t has
thus happened that as result of this
peculiar legislation the people have
been taxed to pay a premium of S37,-
155, 9S1 on bonds purchased by the pres
ent administration in the open market
because the option of payment had been
surrendered.
But there has been brought disturb
ing element into the house of repu Bile
an financiering. Mr.. Secretary Foster
was assumed to be a skilled exponent
of republican doctrine. He had demon
strated his fitness to associate with
great men by his ability to make gains
in business. He was financier and a
statesman because he had wealth. But
with his advent has come a strange rev.
citation of the fundamental ideas of re-
publican craftsmanship. He finds the
people were taxed long years ago for
the purpose of having a fund of coin
wherewith to redeem their paper mon
ey when desired. A law had been
passed authorizing the secretary of the
treasury to sell certain bonds of the
United States for the purpose of pro-
viding the necessary redemption fund.
It was determined by the secretary of
the treasury under the discretion al
lowed him by law that he would hold
$780, 0000 900 of coin for this purpose.
With this understanding the people have
accepted the green backs, relying upon
the good faith OF the government to
maintain at all times the redemption
fund sacredly for the purposes stated
And now comes the dealer in calico,
and tells the people that all this was
mere pretense, and that ION a pinch
the coin held as a reserve fund for
the redemption of the greenbacks is to
be used, and the basis of which re-
publican orators have grated so elo-
quently is to be swept away. 1t hap
pens then that plain citizens who have
not been so fortunate in their dealings
in cotton goods are driven to exercise
what little talents they may possess to
discover what is the net result of this
form of republican fnanciering They
are forced to the conclusion that for
the last sixteen years they have been
taxed for the maintenance of this fund.
They know it has been in the strong
box of the government awaiting their
pleasure. On this fact has rested their
faith in the governments ability to re-
deem its paper money. But because
one billion dollars have been appropriate
ed by an eXtravagant congress itnow be-
comes necessary for the government to
despoil the treasury of the reserve fund.
From this state of facts they are forced
to another conclusion that is not cal
culated to exalt their opinion of this
kind of financial ability. Although
they cannot find in any statute 4 pro-
vision demanding the maintenance of
any specific sum as a reserve. and al
though the law of 1875 leaves this mat
ter entirely at the discretion of the
secretary of the treasury, still they
assert that the constant policy of the
government in the past and the fact
that the people have been taxed for this
express purpose have been full warrant
for the faith that the sum so held should
never be squandered or touched except
for the purposes for which it was gath
cred.
Against this peculiar policy the bust
ness men of the country have not been
slow to protest. They understand
what is meant by the law and practice,
and contend that the government paper
money is no more legal tender than
when the law was passed in 1875 for the
purchase of coin for its redemption.
They see in the determination of Mr.
Foster strange leaning to the ideas of
the fiatists who inveigled so many Ohio
statesmen into the profession of prin-
ciples of finance long since discarded.
If it be true that the greenbacks may
stand as acceptable to the people be-
cause of their legal-tender quality what
defense is Mr.. Foster to make for the
expensive plan of large coin reserve
which is to be used for other purposes
the people to look into this matter and
let Mr.. Foster understand their views,
to the end that the country shall not
again be brought to the old condition
wherein there was no other basis for
their paper money than the faith of
the people. 1t is not true, as has been
stated by Mr.. Upton, that the use of
any part of this fund will place Mr.
Foster in danger of impeachment. Mr..
Upton has overlooked the main feature
of republican fnanciering. These are
not gentlemen who have placed safe
guards against their own dishonest acts
Their discretion has been deemed suf-
ficient guarantee of their proper action
That this has proved defective does not
change the law. Mr.. Foster may do as
he pleases under the statute. but the
people are not without recourse. They
still have the ballot, and when the next
congress meets their representatives
will find way to force secretaries of
the treasury to respect the unwritten
law.-Chicago Times.
SHORT OF MONEY.