The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-05-13

Henry Bacon, chairman of the commit
tee on banking in the last house of repre-
sentatives. in a letter to the Hsdepeade Mt
EepuJiicnn, CT Goshen, \. y, shows:
() that the 500, 900, 600 gold reserve was
accumulated by special sale of bonds.
specially aud particularly authorized by
law for the redemption of greenbacks;
(2l that at the time when the law was
passed, and also at the time when the
bonds were sold under it, gold was the
only coin of full legal tender; 60 that
congress reaifirmed the idea that the fund
was TO consist of gold coin and bullion
only, by the act Of 1852 prescribing certain
things to be done whenever said fund
should fall below the original amount;
A) that the paramount aim of the specie
resumption act was continuous and not
temporary resumption, and hence author
ity was granted TO the secretary not to
issue particular amount of bonds, but
particular description" of bonds, in order
To carry the act into effect ION and after
the first day Of January, 1879"
Mr.. Bacon explains that the amendment
10 the appropriation bill, which passed the
senate few weeks ago. but failed to pass
the free silver" house. changing the rate
of interest on the bonds authorized to be
issued from 5. 4 4 and per cent. TO 3 per
cent, was not proposed by its friends be-
cause they doubted the legal power of the
secretary of the treasury to issue bonds
for the purpose of maintaining the gold
reserve: the only purpose OF this amend
meni Seing To conform to the lower rates
of interest now prevailing in the money
market. Mr.. Bacon further holds that the
reserve is made to be used; that when the
emergency comes for which il was accu-
INFLATED. it should be paid out without
hesitation. and that when the revenues of
the government enable the secretary TO re-
store the reserve to its original dimensions
he should so restore it. Ii. after a re ason-
able time, the revenues are found to be
insufficient for this purpose. then bonds
should be issued for that purpose. But in
any case the treasury should take steps TO
80 cut of the note issuing business alto
gethor and confine itself 10 its proper
function of collecting the public dues and
paying the public debts. IF i. had not
outstanding promises to pay" says Mr..
Bacon. no one would care whether the
gold in the treasury was Sl,ooo,0a or
$i0oooo. 600"
This is sound financial doctrine instinct
with the hard common sense of thor
oagh man Of business. Mr.. Bacon treats
the government gold reserve exactly like
q bankers reserve, and holds shat il would
be as absurd for the government 20 stop
payment because it had nothing left but
Its reserve as it woGld DE for banker.
According 10 the last reports of the
comptroller Of the treasury. the national
banks altogether held sl.i, 00o, epo Of gold.
while the treasury holds Sl00, 600 600 of
gold. Ii our whole reserve was taken
there would be 3 far larger sum in The
banks and the hands OF the people, while
when IL comes 10 buying gold We can bid
higher fer II than any other nation be-
cause our credit and resources are higher
than those OF any other nation.
The New York EceuiH5 Post cites these
impressive financial facts, and says:
fcr these reasons we can looS Win absolute
e9ganinity At the gold expectation and nj he
shrinking of the sl0e,oQoooA We do no. thiuk
that the time has come for issuing bonds
Whether IL viii come at ali will depend en- tao
balance OF the governments receipts and cx
rcnditares. counting the purchases OF silver
bullion among the expenditures.
az course We can not persist IN our
present policy of expanding = large por-
ton 81 the government income II the
purchase Of silver bullion without ultj-
mately being Obliged 10 buy gold. which
means the increase 81 our gold bond debt
In order to buy silver We do no, want