Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-01-14
The Proposed IJew Bonds.

The Chamber Of Commerce OF NV
York city led of. calling upon Congress
TO carry out Secretary Carlisle's sugges-
ton that authority be given him to issue
s9g0.COO0Jo worth OF short-time bonds in
such small amounts as Will permit all
classes 10 invest their sayings IN govern
ment securities.
The suggestion would seem to be wise
one. So long as the government engages
in the business Of banking It must edopt
bank methods. So long as It issues either
notes OF circulation or national bonds. Il
must provide FOR redeeming them in spe-
Gle. SO long as they are redeemable IN
specie they must b. a emed in god.
or else they viii fall below par. in a
word. Mr.. Carlisle's recommendation IS
simply that bonds lie authorized 10 be
issued % means Of doing away with
the necessity FOR issuing them. This last
statement Is not an IRISH bun; FOR II the
Secretary be authorized 20 sell bond, If
necessary in order TO provide gold for
keeping up the credit OF the government.
there will be no demand FOR gold, ard
therefore no necessity FOR issuing new
bonds. Mr.. Carl.sls himself makes tbs
point.
Now IS n good time 20 recall what
Secretary Carlisle said as 20 the proposed
now bonds when he sent in his annual
report TO Congress. We quote:
1.-The necessity for the extension OF the
power Of the Secretary 10 procure and
maintain n larger reserve for The re-
dcmptlon Of United States currency must.
l think. be evident TO every ono who
has given serious thought - the subject.
AT the date OF the resumption Of specie
payments january !, iSID tle only form
OF currency, except coin certificates.
which the government was required or
authorized by law to redeem IN coin on
presentation. was the old legal-.ender
notes. ten and now amounting TO go
CSi .0lG, and 1t was considered by the
Secretary OF the Treasury that coin
reserve Of hundred million dollars
would constitute sufficient basis for the
maintenance Of that amount Of Currency
at par.
"rne correctness OF this conclusion was
shown by the fact that 70 long as there
was no material increase I'm the volume
Of paper redcemabe by the government,
the reserve remained unimpaifet, and no
serious disturbances occurred In our
monetary system. but under the oct OF
July II, 1880, additional Treasury notes
have been sued to the amount OF SS',-
92090, OF which there are now outstarc-
ing Sl53,3lS,22l, thus making the d,sect
government obligations in use as currency
amount 10 the sum Of S45J g99,4p, ali OF
which the Secretary Of the TieasLry 81
NOW required by law to redeem In com
on presentation. Besides this, there have
been coined under authority OF lHw tli9,
332 $50 in legal-tender silver, upon which
certificates have been issued 20 the
amount OF 1894, l3S 5Ol; and. as Congress,
in the act Of July II, $780, declared It 70
be "the established policy OF the Cnted
states to maintain two metals on n parity
with each other upon the present legal
ratio, or such ratio as may be provided
by law" an additional reason now exists
for comforting upon the Secretary uh-
questionable authority TO provide iOr
such contingencies as may arise.
Under these circumstances IT Il, IN
my opinion, necessary not only that be
should be clothed with full authority 20
procure and maintain an ample reserve
i'm coin. but that the purposes for which
such reserve Is to be held and usel Should
be made as comprehensive as td9 duty
imposed upon him by the lcN. The exist
ence OF such authority in a constantly
available form would OF itself inspire such
confidence in the security aud stability
OF our currency that It's actual exercise
might never become necessary. but the
futility Of declaring a specific policy and
Withholding the means which may be-
come necessary for its execution Is too
apparent to require comment.