The times. [volume] (Richmond, Va.) 1890-1903, 1894-11-14
asAIE OF BONDS.

asAIE OF BONDS
All tho indications seem TO point 10
colo ~ bonds by the Government 10 re-
FLEMISH the gold reserve. We take IT, III
deed. that this Will certainly be done
we do not blame Mr.. Cleveland LOT
doing r. Were we in his place we shouId
.,st,I,, do n Il is a most wretched
state Of affairs that confronts him WIN
Tho necessity. but ii is his duty to LOOK
,ha, s,ate Of affairs squarely In the lace
and not waste his time and energies
hiring over the disastrous causes u d"
4 cold reserve sufficient 10 Keep an 'iu
demand ob!ications of the GoNerh"lc"'
at par with gold is an absolute hecoSs''S'
and II the country has allowed HSe'l -
fall under the control OF demagosueS anu
Pcpullsts. who have brought II 10 s'"'e
that threatens it with protest, why men,
the country must pay for It's foliy III al
lowing such men TO assume cohtrol Vi i'S
lav,-noaking power, and there Is all that
o. 10 lie said about it. But, come what
may. cost what it WILL the countrys
credit must be protected, ard II IS now
seriously imperiled
The case stands thus: The Treasury
has Sc. 0je0 900 of gold to meet all ohllsa-
tions. II has outstanding in greenbach'
and sherman notes (all payable IN eo'u'
n little more than S50O.GD0W. 1t II obvious
that this reserve is utterly Inadequate
10 meet the demands upon 1t IN an orul-
nary state of affairs. But the country
Is threatened at an early day with an
unfavorable balance of trade, WHICH may
tsrk twenty or thirty millions OF lhi9
gold out of the Treasury In jiily' anu
where should we then be? we shOuIu
he practically protested, with goa gone
70 a premiurn and another panic on the
country. Inc Government has the power
under the law TO sell bonds 10 replenlsh
the gold reserve. and, in this state OF
affairs. there would seem to be no ques-
ton as to its duty.
But. say those who oppose the sale OF
bonds. Congress will meet in month";
and MIR. Cleveland should wait and turn
the matter over 10 IT. This Is just what
MIR. Cleveland should not do. A majority
of the existing Congress consists OIL me-"
who entertain precisely those fopuilStlc
views that have brought the country 10
confronting the state of affairs that eN-
lists. Mr.. Cleveland knows very well that
instead OF meeting the situation as
alone can be met the earliest acuoh VI
this Congress would be legislation 10 lor-
bid him TO sell bonds 10 replehlsh me To-
serve. The statesmen who NANNY con-
stitute this Congress think IT would DC
well If there were no gold reserve lHtS
would like TO see the Government uhaoio
IN nav gold when holders Of Its demand
obligations called for 1t. Silver worm
fifty cents in the dollar, or green paper
hearing Government stamps, is good
enough. in their opinion, for the ShyioVAs
who have Government paper Inc idc'
that this Congress is TO meet so soon
&C. tho verv reason why MIR. Cleveland
.hon,d at once sell bonds, and enough OF
them to put the reserve beyond all IAN
ger for a long time To come. The interest
we nav upon the bonds he would sell Is
a very trihing matter compared WIN
what every man, woman and child IN
this country would pay If our gold reserve
were wiped out.
These recurring necessities for selling
interest bearing bonds TO keep up sum
cient gold reserve are the best possible
illustration of the absurdity of the Gov
eminent attempting to play the part of
banker for the people. We sell interest
bearing bonds, and thus fix an annual
liability upon ourselves. The gold We get
nv the sales is drawn out Of the Treasury
and shipped abroad. and we must sell
bonds again 10 reinforce the reserve and
make another addition to our interest ac-
count. But the most absurd part OF 1t IS
that the public draws out Of the Treasury
a great part of the very gold that 1t buys
the bonds with. In other words, II de-
pietes the gold that Is in the Treasury
for a fund with which TO build up the
gold in the Treasury. The sale of fifty
millions of bonds last winter was at
premium which made them net S5S.OoO,cC0.
But the gold fund was actually increased
by tie sale only S3S.OoO,0oo This shows
that s.O,oo00o0 was drawn out of the
treasury for greenbacks and Sherman
notes with which 10 buy bonds TO increase
the fund from which IL was drawn. There
lis financierlng for you, but IT is the IMAM
c,ering that Democratic Populsm has
made necessary in order to preserve the
gold reserve.
The Government should be cut abso-
Iutely loose from the money of the coun-
try. except for" coming the precious
metals. But until the Congress of the
United States can be made 20 understand
that, one-half OF our customs duties
should be made payable In gold. This
would give IL something like SlOO0G.OO0
OF gold each year. and that would meet
all the demands likely TO be made upon
the gold fund.
The President should sell enough bonds
70 provide a gold fund which would end
any possible talk OF the Government being
unable 10 pay ell It's obligations on de-
mAnA