Omaha daily bee., 1894-01-19

POSSIBLE EFFECTS Or 4 BOND ISSUE.
The decision of the secretary OF the
treasury to issue bonds in order to pro-
vide for the revenue deficiency, due to
tho democratic policy of tariff reform,
may have the effect of killing of some
of the plans projected in congress, osten-
sibly with the same end in view. One
Of these is the bill agreed upon by n
majority Of the house coinage COM
mittee, which provides for the coinage
and the immediate issue of certificates
against the silver seigniorage, which,
at the coinage statute, amounts to
0,000, 900, the seigniorage silver
20 be coined as fast as possible
and held for tho redemption Of
certificates issued against it. This
measure also provides for the
coinage of the remainder OF the
silver bullion, the redemption and can
collation. OF the treasury notes issued in
payment therefor, and the issue OF cer-
tiiicates that may be exchanged for sill
yer dollars. 1t was the understood in
tention to antagonize with this bill any
measure that might be brought forward
for the issue of bonds, but the action Of
the secretary of the treasury has fore
stalled this plan. 1t is not now prob
able that any bill for the issue OF bonds
will be introduced in congress, nor is it
likely that anything will be done to in
terfpre with the policy which Secretary
Carlisle has adopted Under this policy
he can provide for the deficiency
from revenues, for there Is no provision
of law fixing any particular amount that
shall be maintained as reserve 1t Is
within the discretion of the secretary to
accumulate gold to the extent he may
deem to be necessary to carry out the
law and maintain the public credit. He
may make the gold reserve 5000, 100000
IL he shall think it expedient to do so,
and as to the objection that he cannot
use this fund for any other purpose than
the redemption of treasury notes the
answer is that it has been used to meet
current obligations. This being the case
there is no reason or excuse for issuing
certificates against the silver seignior
age, which would simply increase by
that much the papel-currency which the
government must maintain at q parity
with gold, or of coming the seigniorage
and adding it to the great mass of silver
now in the treasury.
The action of the secretary of the
treasury may also have the effect to
weaken the income tax cause, one rea-
son urged by its advocates being that it
would give immediate relief to the
treasury to the extent of $50, 100000 or
$50, 100000. The amount to be derived
from this source is of course purely
matter of assumption, and the esti mates
OF its advocates are undoubtedly
exaggerated, but at any rate
it is likely to lose support
now that the exigency which
gave it perhaps it's strongest claim to
consideration has been provided for.
1t can be only a matter of conjecture
whether in deciding to at once take ad
vantage of the authority Of existing law
to issue bonds the secretary of the
treasury and the president had in mind
these possible effects of such course,
but it is by no means improbable that
they had With regard to the general
effect it ought to be reassuring of the
determination of the administration to
go to the full extent of it's powers in
maintaining the public credit, and the
knowledge of this can hardly fail to ex-
ert wholesome influence in strengthen
ing public confidence.