The Helena independent., 1894-12-04
BOND ISSUES.
Necessary to Maintain Faith In the Money
OF the People.

During the last month the gold reserve
IN the treasury for the purpose OF re-
deeming the notes OF the government cir
cuIating as money in the hands OF the peo-
pie became so reduced. and its further 1e-
pletion in the near future seemed so GER
tain. that In the exercise OF proper care
for the public welfare it became necessary
TO replenish the reserve and thus main
tain popular faith In the ability and de-
termination OF the government to meet.
as agreed. its pecunlary obligations. IL
would have been well IT, in this emer.
gency. the authority had existed to Issue
bonds OF t'e government bearing a low
rate Of interest and maturing within a
short period, but the congress having fail
ed to confer such authority resort was
necessarily had to the resumption act of
1875 and pursuant TO It's provisions bonds
were Issued drawing interest at the rate
OF five per cent per annum, and maturing
ten years after their issue. that being the
shortest time authorized by the act. am
glad to say however. that on the sale of
these bonds the premium received opernt-
ed To reduce the rate OF interest 10 be paid
by the government to less than three per
cent
Nothing could be worse or further rc-
moved from sensible finance than the re-
lations existing between the currency the
government has Issued, the gold held for
It's redemption. and the means which must
he resorted to for the purpose OF replen-
ishing such redemption fund when i'm
paired. Even ~ the claims upon this fund
were confined 60 the obligations originals
Intended, and II the redemption Of these
obligations NJ sant their cancellation. the
lund would be very small. But thCse oh
legations when received ana redcrucd In
gold are not cancelled, but are rcissucd.
and may do duty many tin.s by way Of
drawing gold from the treasury THUS Wc
have an endless chain In Dp. alton con-
stnnlly depicting tho haifrca5ufy'a cold, ana
never near Anal reht
As n this was not bad nnoI-h. we have,
by statutory declaration mat T. ~ the
policy OF the government ~ inalutd a ibe
parity between gold and SILVER. ailnI the
force and momentum OF this tShaiisung
process and added largely 20 the currencv
obligations claiming this pHrilinr gold re-
] dcmptlon, our small gold ~ l,rvs is thus
subject 10 drain from every ..ls. 'rhc do
| innnda that Increase our lHurlr also in
crease the necessity ~ protecting this rc-
serve against depletion, ana h is most ur-
satlsfnctory 10 know that tho protsstion
afforded is only Temporary paillMtipp.
/ u n perfectly and p1lpahly plain that the
only way under the present con1itiJns Iy
] which this reserve, when lhugarousIy de-
/ plcied, cnn be rrplenlHhrI r. fhrouth the
Issue and sale ~ the bonds OF .he coy .rn-
mcnt for gold, ana yet cOnrreas has not
only thus far declined tu authorize the
Issue Of bonds best suited to such a Ibr.
pose, but there seems "a disposition IN some
quarters 10 deny both tbr necessity nnd
power Tor the iasun of bombs ut all can
not Tor u moment behryr that any If our
citlz"na are deliberately willing mat tboif
government should default m ita recuni nv
obligations. or thntiu financial os.ratlong
should be reduced ~ sllycr basis.
AZ any rate, ! should NOT feel mai my
duty was done " ! omitted any effort /
could mako 90 nvert hurh a calamity. A
long, therefore. az no ntgNsion IL made
toi TIE nnnl rcdemplonlat the putiing
aside Of the currency ohD(lttyn now used
10 repeatedly and congl3HW drnw nom
III" government ~ goldganh ns long ne
no better authority Tor blinhiissues is nI.
lowed lhon AT present etlats. sieb mn
thorlty viii be utilized v-fi,A.ver ana ns
oiien as becomes necestytylto roaint,In
a sufficient gold roBeryc, atddn abundant