New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-26
DEXOCRACY IND CHANGE.

Having definitely declared that notes arc to
be redeemed in gold, the AdminiStl alton has
done something to restore the confidence with
out which bonds could not be placed. True.
the business world may yet question whether
| tho Administration may not change It's mlnd
again, as suddenly as it did between Thursday
night and Sunday night, or whether the as
surance that silver payments were never con-
templated is candid enough to indicate entire
sincerity in the latest declaration. But now ii
is proposed to issue bonds, though few days
! ago Secretary Carlisle declared that bonds
would not be issued with his consent 1t Is
only an evasion to say that the bonds would
be used merely as collateral for a temporary
loan. Before they can be a collateral for any
thing they must first be lawfully issued. 50
far negotiations make little progress. Bankers
say they can do nothing with a temporary non
negotiable obligation. Obviously they cannot
| afford to swell their loans by $50. 000,0 600
while reducing their reserve by $50. ZOO.
That would threaten far more trouble during
| the summer and fall than a direct exchange of
gold for legal-tender notes. The whole of the
gold desired tho banks cannot spare. II gold
is to be drawn from abroad negotiable Sc
curiieS must be given
There arc legal difficulties about the transac-
ton. Power to issue per cent bond under
the act of 1870 may perhaps be held to in
cludc the power to issue 3 per cent bond,
and it may even be considered that power 10
issue bond running fourteen years includes
power to issue one rodeemable at pleasure, if
money can be borrowed on such an obligation.
But the power to issue a bond payable prin
| cipal and interest, "in coin" of the standard
weight and tncness fixed by law July IA, 1870,
does mean power TO issue bond payable, prin-
cipal and interest, in standard gold dollars or
in standard silver dollars at the pleasure of the
Government, and there is not known to be any
other authority for the issue OF bonds of any
kind 1t may be seriously questioned, in the
existing state of facts, whether Government has
power under the law TO ISSUE a bond payable,
principal and interest, in gold, though it had
such power prior 10 the resumption Of silver
coinage under the acts of 1878 and 1890. No
doubt the President could give personal assur
ance TO purchasers that he would have express
authority granted by Congress to make a gold
bond. But tinancels here and abroad may not
be entirely certain in the light Of what they
know of Congress and its temper that he could
cany ont such pledge if made nor can any
body be sure that the next Congress, if it should
find that gold obligations had been issued with
out express authority of law, may not rush
through both houses joint resolution, not re-
curing the Presidents signature, declaring that
such bonds are illegal and cannot bind the Gov
eminent. Hence it is a matter Of some doubt
whether the tinanciers here and abroad who
control the available supply Of gold will be
disposed to take at par an obligation which the
Government might legally pay in 70-ccnt dol
lars.
These difficulties every one will realize,
would not have arisen if the people had elected
Republican President and Congress First,
there would not have been the distnlst which
has taken over S. G, 900 900 gold abroad since
the November election. Second, there would
not have been the grave doubt about the con-
tnung disposition and power Of the Govern
ment to pay gold on all lcgal-tendcr notes.
Third there would have been no doubt that
Republican Congress would have cured any de.
fects of law without delay, so that tho bond
or other obligation to pay gold, with interest
in gold, could have been issued with full au-
thcrity. When people voted for " change they
voted for change in the public credit and the
safety of the Government.