The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1894-11-30
THAT BOND ISSUE.
How Can . Nation Sustain Its Credit by
Going Deeper Into Debt?


Herald the following very justifable
criticism of the policy of issuing gold
bonds to replenish the gold reserve-a
criticism, by the way, repeatedly urged
in these columns:
s"Nothing could better illustrate the
fact that some sort of currency reform
is necessary than the possibility that
the gold with which to take up the is
sue of bonds might be drawn from the
treasury itself. If this should be done
the new loan would be a failure, SO far
as adding to the gold reserve is con-
cerned. AS a matter of fact, about
one-fourth of the gold used in the pur-
chase of the last $50, 900, 900 issue of
bonds came from the treasury, and it
is wholly practicable for the banking
houses which are to buy this issue to
amass enough legal tender for the pur-
pose, go to the New York sub-treasury
for their gold, and thus simply transfer
cbout 5000, 600 of the yellow boys
from one of Uncle Sans pockets to an
other
The New York Herald another I'M
compromising monometallist, puts the
case against the bond issue in more
picturesque but equally unanswerab BILE
form. 1t says:
''Our present method of replenishing
the treasury of gold suggests the story
of Davy Crockett's coonskin. Peltries
were a circulating medium in the back
woods, and Davy at the Lighthouse
tavern paid for the drinks with the
fur of coon which had been the sole
reward of his prowess with rifle that
day. The bartender threw the peltry
under the rude counter, and Davy re-
covering it through the interstice in
the logs rendered it in payment for
another 'round,' and repeated the
trick until he and his compotators had
drained the barrel, and the puzzled
proprietor discovered that as a result
of the prosperous trade he had been
driving he had nothing on hand but
, the same old coonskin.
Last February when the treasury
reserve ran low it was replenished by
the sale of $50, 900, 900 of new govern
ment per cent. bonds for gold, the
proceeds amounting to upward of $751;
OOO, 900, as the bonds commanded a high
premium. That was all very well so
far as it went, but the people who had
paid in the gold saw hole through
which they could surreptitiously pull
it out again. This was the obligation
of the treasury and its branches to de.
liver gold in redemption of legal tenders
when presented in sums of $50 or more
Through this hole all the gold received
for the bonds was soon drawn out of
the treasury again, and it's present
owners stand ready to repeat the trick
by paying it over the counter once
more for the new issue of government
. bonds. Given a continuance of exist
ing conditions and this same $50, 900, 900
of gold could be used as often as Davy
Crockett's peltry, and after the govern
ment had issued 1000, 600, 900 of bonds
the treasury would have nothing but
the same old gold reserve with which
it started"
But the New York Herald goes less
deeply into the subject than its Chicago
namesake. 1t sees that maintenance of
the gold reserve under the existing
system is impossible if the people are
taught by government policy or by
newspaper clamor to desire gold for
their own private store of money. 1t
fails, however, to note how easy it is
for any bank desiring to buy block of
the gold bonds, issued for the replen-
ishment of the treasury's stock of gold,
to get from the treasury the yellow
metal necessary to the purpose.
1t must be entirely evident to every
thinking man that radical currency
legislation is a necessity of the imme-
diate future. If that fetch gold re-
serve is to be maintained some special
device for it's maintenance other than
the sale of bonds every six months for
gold drawn from the treasury must be
devised. The New York Herald, and
other papers which cannot see beneath
the surface of the currency question,
suggest that gold be obtained by max
ing all customs duties payable in gold.
What then? Where will importers get
the gold wherewith to pay customs
duties except from the treasury? Legal
tenders will be exchanged for gold and
the gold paid in to the customs col
lectors. Extremists say retire the legal
tenders. And contract the currency?
Add to the notorious appreciation of
the price of gold and the correspond
ing depreciation of the price of labor
and labor's products, which all cur
rency reformers-even those bitterly
hostile to the free coinage of silver
admit is now going on?
These problems are serious ones.
There must be currency legislation and
at an early day. 1t must not be die
tated by extremists, by owners of sill
yer mines on the one hand or by presi-
dents of national banks on the other.
1t must not be legislation for the fur
ther contraction of a currency already
too limited for the needs of business.
1t must not be legislation which gives
banks the power to issue fat money
while denying it to the national gov
erument. There is no more puzzling
problem confronting the American
( people to-day than this, and it may well
be doubted whether any wiser step
toward it's settlement could be taken
Immediately than the speedy appoint
ment of commission on the currency
to weigh plans and present the one
which will insure complete justice to
all interests. -Chicago Times.
Getting Together.
The following significant special
from Washington appeared in the In
dianapolis Journal lately: The state
ment of the situation, so far as the
power of the popdlists in the senate is
concerned, comes from senator who