New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-13
GOLD EXPORTS AND BONDS.

Any man is probably mistaken who imasines
that Secretary Foster is going to be talked into
an issue of Government bonds just at the end
Of a Presidential term. Saturday noon the
Treasury held S226333152 in gold A great
deal of nonsense is talked and believed about
the "free goldo in the Treasury, as if the
whole or any considerable part of the S11S,-
1913, 500 gold certificates now outstanding
would or could be suddenly presented for re-
demptOn Nothing is more certain than that
most of these certificates will remain Out>tand-
ing so long as the Government continues to
pay gold on demand for its notes. But the
S1OS, 900, 900 gold remaining, in excess OF all
gold certificates, would suffice to furnish q the
gold exported in thirty weeks, II that
metal should 60 out as largely every week as 1t
did during the last and most people are aware
that other changes would take place, long
before the Treasury reserve could be thus en-
bausted. which would tend to prevent further
exports of gold.
The use of pant of the 500, 100000 bullion
fund for the redemption of notes would simply
be making exactly that use of the fund for
which it was expressly intended. This is not
like the reserve which a bank is required by
tenance of that fund would have been the most
absurd thing conceivable if it had not been
intended to be poured ont freely in exchange
for notes whenever anybody wished to have the
notes redeemed. Of course it would be the
aim of the Government afterward TO replensh
the fund as soon as that could be done advan-
tageously, but even for that object, and even
after the fund had been somewhat reduced by
rcdemption CT notes sale of bonds might be
unadvisable.
The Western and Southern people, who have
been absurdly jealous of Wall Street influence
and suspicious that the Treasury was managed
for the interest of bankers and money lenders,
would not be slow to misintcrpret sale of
bonds at this time, when Government four per
cents are nearly cents on the dollar lower IN
piicc than they were a year ago. There would
be some excuse for the claim that the bankers
themselves, holding about SS000O,00O III
specie, ght servo their own and the countrys
interests much better by giving part OF their
gold for notes than by demanding interest bear
ing bonds for it, No doubt it would be agreeable
to some Democratic partisans to see President
Halrison's Adminis alton closed with Trans
action which demagoguos could crIt:cise etioc-
lively, but they would doubtless he quick to
advise Mr.. Cleveland that he had better not
begin his Administration by step which Con-
gross could make unnecessary in few days by
stopping the purchases of silver.
1t is not impossible that few weeks more OF
gold exports may help strongly to prompt wiser
financial legislation by the next Congress. The
members of the present Congress were elected
two Yeas ago, under circumstances very diff
felent from those which now exist. and many
of them made pledges while candidates which
their successors were not required were not
willing to make. In the Senate with PopulI>t
or Democratic members succeeding Rcpubli-
cans. the changes have not been for the better,
but the next House will contain forty more Re
publican members than the present, and u
much smaller number Of Democrats elected by
combinations with the Populists There is at
least possibility that the consequences OF
foolish financial legislation may be 50 clearly
foreshadowed and by some members SO far
comprehended that the next Congress may
terminate purchases of silver. Until ii is
known whether Mr.. Cleveland will call an extra
session, at all events, the Treasury can get
along without offering bonds for sale and if
there is to be an extra session the responsibility
of devsing remedies for financial difficulties
may well he left to Congress.