New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-28
THE QUESTION ABOUT THE BONDS.

II is foolish fer adherentS or Tue AuiiihiS''
ton 10 treat every question as to the correct
ness or wisdom of its acts as If the motive De
hind the question must be unpatrioiic. III th're
is doubt as to the legality of the issue or DohnS
under the act of 1870. it is better for all con-
ccrned To have the matter settled by the courts
AT once Senator Quay raises doubt on what
seems 10 The Tribune mistaken ground. lie
holds that the act of 1870 was intended To re-
deem and retire the grecnbacks, and that bonds
were 10 be sold only for that purpose; that the
subsequent act of 1873. prohibiting the retire
mcnt of any part of the grecnbacks. virtually
deprived OF force the previous law authorizing
the issue Of bonds, and that the Secretary does
not now require gold for retirement or legal
tender notes. nor expect 10 use IT In That way
This reasoning assumes that the redemption for
which the act Of 1919 provided was exclusively
for the purpose Of retiring grcenbackS from
circulation.
But the history Of the time proves concllsivcy
that the act WAS adopted with an entirely
different view Many who voted for il, as their
declarations show. would not have favored any
measure designed To- remove the legal tenders
from circulation They believed that the rcidl-
ness and proved ability Of the Government T."
redeem would prevent presentation OF notes
for redemption and the result shows that th'y
were right Othcr Senators and Represent
lives thought II might be- necessary 10 redeem
and retire some part Of the notes, though not
the whole the greater part. before the rest
would circulate In gold. The ruling purpose al
the act was to make sure ~ the restoration of
the legal tenders Ia par. AMI 10 maintain them
In circulation M that rate. This all-c"ntr"lling
purpose seems t" be- ignored 10y Senator Quay.
Men differed about ia" necessity ~ retiring any
large part Of the circulation. AMI also about The
amount Of gold which II would be- Necessary
10 pay ont before parity of paper and gold
would be established But the distinct purpose
was 10 establish and maintain absolute INFER
changcablcncss of notes FOR gold coin. To that
end continuous power 10 sell bonds aud raise
more gold in ease ~ need WAS obviously neccs
sary. and such power was plainly granted.
\ different ground for questioning The legality
~ Secretary Carlisc'S action Is that there now
exists no necessity for r'lc"ming United States
notes There has been such occasion much of
tie time since the present Administration cam"
into power and the Secretary light then have
shown cunclusivcly that gold WAS being drawn
from the Treasury in exchange for notes. ana
50 largely that rcplrniShmcnl Of the gold re-
serve might be- the only mode of aycrring Il
failure 10 maintain the notes AT par I'ut he
then refused to use the power given iN III" act
Of 1870. when there WAS distinct occasion for
using it, Now there i no demand for gold in
exchange for grc,.nbacks. and no real anxiety
about the maintenance of gold payments. eN-
ccut that which j. caused 10y the Treasury
cxhaliSling tariff policy Of the Administration.
BY threatening Il sweeping reduction of duties
the Administration has already cut down the
revenue. exhausted the Treasury reserves and
improperly diverted to meet the cost of rrcl,
less partisan policy. part of the gold Reserves
held for the redemption Of legal tenders.
II is not now claimed that the gold 10 be-
obtained by sale Of bonds il required for re-
dcmptiOn Of notes Every on" knows that il
would be used 10 make up deficiency created
by threatening 10 destroy great domestic indus
tries II Is on this ground. II on any. that the
right of the Secretary to issue bonds under the
act Of 1870 can be- questioned. II IS worthy of
notice that OK Senator Trumbull. II lawyer of
great distinction. who was Il Senator when the
bond act was passed. according 10 photographed
reports Of a conversation. expresses the opinion
that the power OF the Secretary can be Tested
in the courts by any citizen who would have
to bear part ~ the taxation necessary 10 meet
interest Oh the bonds II ISSUED The tenor Of
his reported conversation implies serious
doubt whether the issue Of bonds is authorized
such a lawyer considers worthy Of discussion II
would be well 10 have it passed upon by The
courts before the bonds have been issued