St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-04-23
AVICIOuS CIRCLE.

Plain people who aren't "inanciers, d"
but who reason that the money affairs
of a government differ from those of an
individual only in their magnitude. while
controlled by the same laws. are rather
enjoying the confusion existing among
the men of finance. One reads the diff
ferent interviews with men who make
money handling a trade, and comes from
the reading of their differing and con-
Trajectory opinions with the satisfied
conclusion that professional tinaneiering
isn't an exact science by any means.
They all unite in the opinion that Sec
rotary CARLISLE should issue bonds
with which to buy gold with which to
redeem the silver notes. The bankers
are all unanimous in this. The secre-
tary does not heed gold for any other
purpose. He has hundred millions of
gold to redeem the legal tenders with;
he doesn't need gold for that.
The situation then is that the secre-
tary buys silver, for which he pays in
treasury notes. These may be pre-
scented at the sub-treasury, and gold de-
manded for them. They go out into cir
culation again, and take up the same
round of redemption and reissue. They
are reinforced by fresh issue of nearly
fifty millions every year. The pull on
gold increases with each monthly pur-
chase of silver.
The upshot of this ballooning is that
the free gold; that is. the gold in excess
of the reserve, and the deposits for which
gold certificates are issued,i is exhausted.
None, practically, is coming in. Taxes
are paid in paper. The paper is pre-
sented and gold demanded. No one de-
mandS silver; no one wants it. The
secretary has the option 10 give out
silver in payment Of the treasury notes
of go and the silver certificates. The
''fnanciers" are all shivering in ap-
prehenSiOn that he will do it.
If the inanciers won't take silver and
and the secretary won't make them
take it; if they demand gold and the
secretary hasn't it to give them, what
is he going to do about it? Just what
any other man would have to III private
life, go out and buy gold on his notes
issue bonds for gold. What good will
this do-that is. what permanent good?
1t is only a palliative, a temporary easing
off of the strain with baseless hope
that something may turn up. If the
bond issue policy is begun, the treasury
will begin to describe vicious circle;
it will buy silver bullion for which it
will give treasury notes which it will
redeem in gold, to get which it will
issue bonds, and this round will be kept
up, the silver certificates and treasury
silver notes going into the treasury, the
gold going out, the paper following in
payment of appropriations and ex-
penses and coming round again for ex-
change into gold, to get which more
bonds will be issued and more gold
bought.
Hasn't the country gone about far
enough in this debauch of the "finan-
ciers?" Isn't it about time to quit bal
looming and get down to earth? There
will be bump, maybe a hard one,
when ground is struck, when the secre-
tary pays silver for silver notes, but
there won't be any bones broken, and
the distance between the balloon and
earth was never less. We have got to
get down to solid ground some time,
and if we take our bump now we won't
have to get it OF harder one later.