St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-02-01
THE BONDS ARE LEGAL.

THE BONDS ARE LEGAL.
1t is perhaps to be regretted that the
district court at Washington did not
deem it necessary 10 enter fully into the
merits of the bond issue, but ruled out
OF court the application for an inJunc-
ton on the ground that the applicants
had no standing in court. A decision
on the main question Of the right of the
secretary of the treasury to issue the
bonds in question would have been far
more satisfactory, for it would have set
at rest several veXatious and mooted
questions that may at any time return
to plague the government. The action
of the court still leaves doubt in the
minds of many persons as to the legality
of the issue, and will have a tendency
to lessen the desirabiiity Of the bonds
as an investment and reduce their mar
ket value.
That many entertain doubts as to the
legality of tine issue is evident. although
the great majority of our people, the
capitalists included, feel confident that,
legal or otherwise, the bonds will be re-
deemed according to promise. This is
proved by the promptness with which
the loan has been taken, the entire
amount having been already subscribed
for at handsome premium over its
face value. Our people have confidence
III the good faith of the government,
and know full we'll that no technicality
will be permitted to interfere with the
exact fnlfllment Of all pledges made.
II nrnforoI,ln Of
even the slightest faint of illegallty
from proceeding such as the issue of
bonds, but it is not essential, as the man
who should suggest the reputation of
even the least of the government obliga-
tons would dig his own political grave.
The people would not tolerate him in
any official capacity.
Day by day the conviction is becoming
more firmly fixed in the public mind
that Secretary Carlisle. in ordering the
issue of bonds, made no mistake. either
from legal or economic standpoint.
There are few among our public men
who doubt his authority. The ablest
financiers in both branches of congress
give the plan their approval. Senator
John Sherman, who is regarded as in
fallible OH matters OF finance by Repub-
licans throughout the country, does not
hesitate to express his conviction that
the secretary acted in full conformity
with law in the matter. In speech in
the senate Tuesday he stated that the
gold reserve is fund which should be
preserved inviolate, and he thought it
even mandatory, rather than discretion
airy, with Secretary Carlisle to sell at
least sufficient bonds to restore the gold
reserve. This is the first time in fifteen
long years." he said. "that any one has
denied that power. 1t has never been
disputed before. 1t is almost unpatriotic
to question this power at time when
the revenues of the government are in
sufficient to meet the EXPENDITURES. 1t
is question that should be above par
tisan discussion" He further stated in
the most positive manner-and as he
was secretary of the treasury at the
time of the passage of the act he ought
to know whereof lie affirmS-that the
power to issue bonds in just such a co n
tingency as has now arisen was given
by law in the strongest. clearest and
most direct language that has been
used. That law and the power had
stood unchallenged and uncontradicted
from that day until few days since,
when resolutions were introduced in the
senate denying the authority OF the Sec
rotary of the treasury at time whe II
bids were about to be issued.
1t is very evident from the action of
the Washington court In this. matter
that any attempt to enjoin the issue of
the bonds in question, or in any manner
throw discredit upon them would be
repealed. But neither this implied rul-
ing nor the emphatic words of tins
leader of the Republican party in con-
gress Will quiet the impra cticables who
are opposed to the bond issue. There
is no question but The step was deter
mined upon reluctantly by the present
administration, and that both the presi-
dent and secretary Of the treasury re-
GREETED its necessity as sincerely as any
| other citizens. But there was no other
| escape from the dilemma in which the
government found itself. Its treasury
was bankrupt through no fault of the
| existing administration. Its debts and
| us OUllSdLlUUS W6I6 d legacy lEOu Tile
Harrison regime. They were resultant
from scandalous profiigacy. if not down.
right dishonesty. Nevertheless. the
| government was liable for all expenses,
no matter how ill-advised, and no
thought was entertained Of repudiatln g
| them. The bond issue was the only
recourse by means of which the reserve
| fund could be replenished and money
| obtained for current expenses. The
same plan was pursued that every saga
| ciouS business man purSueS IN like
emergencies. The government is rails
ing the money on its bonds in ope n
market precisely as the merchant real
ICES upon his notes. This is the long
and the short of it. and the country has
reason to be congratulated that the ad-
| ministration was brave enough to I'M
dertake an unpopular policy before the
country's credit had become seriously
impaired by reason Of large and IN.
| creasing deficit.