The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1892-12-01
A BANKRUPTTREASURY.
WILL THE NEW ADMINISTRATION BE
FORCED BORROW


cussed by MIR. ClsveIaud an his Friends
Tho Result of Republican Layishness.
Cleveland Administration be obliged to
negotiate a loan for s5O,OGO,O0O or
500, 100000 to cover the probable de-
iicienccs IN the treasury or will au in.
come tax be necessary? This PROPOSE.
ton has been seriously considered in
New York by Mr.. Cleveland and his i'm.
mediate friends, AMI the question is still
a dcba;ablc one.
The lirst iuiimaLion that such con.
tngency might arse was brought to this
! city by Il prominent Democratic leader,
whose name has been mentioned in con-
nrcuOn with place in Mr.. Cleyeland's
| Cabinet.
According to the gentleman referred
, 30 there IS Il strong PROBABILITY that
there will! tic a big deficiency in tho
treasury when the Cleveland Admins.
tration comes into power. 1t is thought
that it will be 10 the political advantage
| OF the Democracy TO announce to the
country that they found the Govern
ment in bankrupt condition. Then
comes up the question Of issuing new
BONDS and increasing the public debt or
increasing taxation. Under the clrcum-
stances it is claimed that many Of the
leading Democrats agree that the peo.
pie would rather sec Il new issue Of
bonds put upon the market, at 3 or q
per cent. than submit to an income tax
OF an increase III The general taxes. Ii
such step is necessary to meet tho oh.
lE,a;i0ns OF The Government the sooner
il Is taken the better.
OF cOulsc this idea is advanced upon
tie expectation that there will be de-
iC!cnCY. Secretary Charles Foster is
hot Jet prepared to make such an adj
uisSion. Othtr treasury officials, who
are equally as familiar with the anau.
rial condition OF The treasury at the pres
cot time, atc more apprchcnslve on that
point than their distinguished chief. Tho
mere Suggestion OF such q thlLg caused
quite Il sensation among prominent
treasury olli i;lals today, and they at once
co;nmeuCCd 10 speculate upon what
might follow. 1t was generally agreed
that Il loan would be more p .pular with
The masscs than an increase in taxation.
There would be no difficulty in floating
! $50, 600, coo or 800, 900 900 OF Govern
men bonds at - or 3 per cent Such
an unus9,l proceeding would, OF course,
/ REQUIRE lDC SuDCllOn Oh congress.
Not since the war has there been
necessity 10 issue bonds 10 meet the regu-
lar demands Cf the Government. In
! 1878, when John Sherman was Secretary
OF the Treasury, he obtained authority
from Congress to issue $G5, 900, 900 of II
per cent. to sustain Linn in carrying out
the Resumption Act. At that time but
LITTLE gold or silver was to be had at the
treasury department, and Mr.. Sherman
did not propose to take any chances in
having deficiency through the carrying
out Of his resumption scheme. The is-
sue of rciunding certificates, under the
Act nt February, 1870, was also in the
nature OF loan. That was the Act
which authorized the Secretary Of tho
Treasury TO issue certificates Of deposit
OF the denomination Of ten dollars, bear
Ing interest at the rate of 4per cent. and
convertible into + per cent. bonds al any
time. The last report Of the Secretary
of the Treasury shows that $40, 1880
i'll certificates were issued, Of which
80 ,92O ere outstanding. The occasion
Tor the issuance OF these certificates was
To enable persons Of limited means to
make small Investments IN United
states securities. 1t was not due to a
deficiency, threatened or otherwise. in
the trcasury.-News and Courier.