New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-05
ANOTHER CRATE MISTIkE.

The latest scheme of the Treasury Department
cxccls in unwisdom Dispatches from S'lch
sources that they are practically certain 10
have been inspired by high Democratic author
ity declare that the Secretary OF the treasury
the Attorney General and the President nave
discovered law giving unlimited power to IN
fate the legal-tender currency. for the purpose
of buyng gold The law referred to was passed
in 1862, when no lcgal-tender notes had been
issued and was never intcEded to authorize the
issue of any logal-tcnde: notes. It's provision
that the Secretary Of the Treasury may pur-
chase coin with any of the bonds or notes OF inc
United States authorized by law. al slch rates
and upon such terms as he may deem most al
yantageous to the public interest, was intehued
TO meet temporary emergency. ana IL would
he n violent stiaining of its meaning to assume
that il gave authority. for all time TO come, to
emit legal-tender notes at the pleasure OF the
Secretary. Even if it had such force orig
naly the act was deprived of II and virtually
repealed by the subsequent laws limiting inc
issues of United States notes and hXlnS inc
amount as il now stands.
About the meaning and force Of the law there
NAV be differences OF opinion But II Is nara
10 see how there can be any about the unwisdom
of an attempt - raise by forced loan soiu
that is desired only for the maintenance OF tho
public credit The present gold reserve for the
redemption of legal-tender notes is NOT large
enough to preserve healthy sense of security
and therefore the Secretary proposes TO issue
more notes in order to get more gold 20 redeem
them with. The very groteSqueness oil THIS pro
posal is the highest merit 1t possesses. Inc
financial mind is simply dazcd by the idea that
public credit can be sustained by borrowing in
such a fashion. The Administration seems TO
have borrowed the idea. as it would borrow
reserve. When the Plankinton Bank OF Mil
waukee was in trouble. it had some trucks and
safes protected by armed men, paraded through
the streets to the bank, in order to proclaim the
fact that il had borrowed half a million more
reserve from Armour.
The Milwaukee experiment resulted III bank
rnptcv. The United States Treasury can sell
its notes at discount very quickly by adveri'>-
ing that il has ~ better means Of providing Tor
payment Of its demand obligations than by Is
suing more demand obligations. Gold goes out
of the Treasury now with sufficient rapidity, but
there is every reason to expect that il would go
out far more rapidly if an increased issue OF
legal tenders should be made. Now it goes out
TO settle foreign balances, and the oufgo for that
purpose is limited. But then it would 90 out
for the protection of every bank, or firm, or in
divdual having fear Of the financial future, and
there is literally 10 limit to the demand which
might thus be created.
| II seems TO be the notion Of this Administra
ton that business men OF all sorts have entered
| into a conspiracy to compel il 70 issue b)nd'.
| The sensible way TO defeat such conspiracy. II
there be one. is to refuse an issue of bonds.
Free use of the Treasury reserve is bringing the
only relief that is possible, in the present state
of doubt and distrust about the course of the
party in power-namcly, a contraction of bust
ness credits loans and prices. But it would be
highly sensible also for the Administration 10
terminate or lessen that dislrust if il can. The
President might call Congress together without
| delay to make provision for protecting the pubic
credit and he could then throw upon mombcrs
the responsibility for all the disasters which the
| fear Of unwisc action causes. One other thing
he can do of considerable importance lie
might make it thoroughly understood that he
would not consent to any initiation Of the paper
currency, or to any form Of free silver coinage
Secretary Carlisle is in danger of being known
as the greatest panic-makcr in American history.
In 1891. when extraordinary prosperity existed
and the highest prices ever known for American
securities were ruling. it was Mr.. Carlisle who
offered and secured the passage of an amend
ment prohibiting banks from Withdrawing bonds
deposited for circulation, and forcing them 10
accept 3 per cent instead Of 6 per cent on such
bonds. In week loans were contracted Sill
| 600, 900. and stocks depressed SO per share
the loss in value of sixty active securities being
$50, 600. 900. This year the Secretary has
! alarmed the business world by n statement sig
costing that new Treasury notes might be re-
! deemed in silver only. Now still more dan
gcrous proposition comes from the same depart
ment Yet there are some people who wonder
| why there is distrlSt when the Democratic party
! is in power.