The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-12-25
Selling, Bonds for Gold.

The continued exports OF gold from this
country to Europe. together with the con-
tinued increase Of our paper and silver cur
rency through the operation OF the act OF
July, 1880, are exciting the anxiety. not to
say the alarm. OF thinking people. The stock
OF gold in tho Treasury has run down to
barely sl20, OOO, 900. with the prospect OF n
further speedy decrease. while the amount
OF preenbacks, coin notes. national bank
notes, silver dollars, and silver certificates.
which rest upon it. is already over $looo.-
COZ, 900, and Is increasing. 1t Is possible.
therefore. that tho gold in tho Treasury
may BE- depleted TO n point at which the pub
lie will lose confidence. and by sudden dc-
mand for the redemption OF legal tender
notes cause Il suspension OF gold payments.
1t Is announced. apparently by the au-
thority OF the Secretary OF the Treasury.
that Whenever tho amount Of gold In the
Treasury becomes dangerously small no Will
increase it by selling bonds for gold under
tho provisions OF the Resumption act oflS
Tint act empowered tho Secretary OF the
Treasury to redeem in coin on and afterJa
|, 1879. the Treasury notes then outstahd-
ing, nnl TO prepare and provide Tor such
RESUMPTION, to sell ut not less than par for
coin bonds OF tho description mentioned In
the Funding act Of 1870. to the extent nee
cssary for the purpose. 1t is now claimed
on behalf OF the present Secretary that the
act Of 1875 remains in full force. and that 1t
gives him tho power to sell bonds for gold
wheneverin his opinion it becomes neces-
snry to do so.
Waving the question whether the Re-
sumption act IL still in force. and whether
bonds may DO issued under 1t fourteen
wears after its purpose has been accom-
plished, nothing is said in it about redeem
ing legal tenders in gold or OF selling
bonds for gold. Nor can the bonds It refers
to DO made payable by their terms In
gold. They arc expressly directed to be made
payable in coin, and are to be sold for coin.
and redemption is to be made In coin. The
emergency under which they can. by the
most liberal construction OF the act. DO
issued at this late day is not. therefore. the
necessity OF maintaining redemption in
gold. Silver dollars meet oil the require
ments Of the act. and as long as the Treas
ury has enough Of them the Secretary has
no ground for accommodating gold.
There has been some wild talk about the
banks OF this city furnishing the Treasury
with $50 600 600. and even S75. O0O, 900. In gold
in exchange for bonds. What q few foolish
bank officers may not have said on tho sub
iect it Is impossible to guess. but that a
majority Of them would consent to diminish
their lawful money reserves by even the
smaller amount mentioned Is incredible.
II they paid away $50. OOO 900 in gold they
would have to replace it with legal tender
notes. and these would have to DO with
drawn from circulation with disastrous re-
suits to business. II the Secretary Is to got
any considerable quantity Of gold it must
| be from the public. and whether he could
do it except at a stiff rate Of interest Ia
doubtful. Any bonds he issued would be
liableao be paid of in silver. and for incur
ring this danger buyers would want to be
we'll compensated.
All these considerations point to the de.
STABILITY OF speedy repeal Of 80 much Of
tho act OF 1890 as requires the monthly addl-
ton to our currency Of about S4.0O0.000 In
payment for silver purchases. No other ex
pedlent even an act expressly authorizing
than a temporary effect. With the act o.
1890 in operation. dstrust OF our currency
once established would remain. and would
lead to the drawing out OF gold from the
Treasury as fast as 1t could DO put In.
things go on as they are now going. 1t Il
among the probabilities that in few
months the Treasury will be unable to pay
gold on demand. and the metal will com
mand a small premium.