The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1894-01-27

Success to the Loan.

fetary CarllSle eHectualIy ulSpOSeu
of the argument against his power
to sell bonds under the act of 1875.
He shows that the gold reserve of
500, 100000 was exhausted long ago
in the redemption of greenbacks
and that he has authority to use
gold obtained from loans to main
tain the credit of the Government.
Whether gold be employed in re-
deeming greenbacks or in paying
current expenditures of Govern
ment makes not the slightest diff
ference.
The hostile comments on Secre-
tary Carlisle's policy to which the
financial world has responded 50
handsomely betray the wretched
partisan spirit from which they
emanate.
The la test critic of the Secre-
tary's policy is ex-Secretary Fost-
er, who issues from the merited
obseurity to say that the sale of
bonds and payment of the proceeds
for current expenditures is an eva
sion of the law. Yet Mr.. Foster
was the first Secretary to transfer
the $100,OO0,0OO gold reserve to the
Treasury surplus with the view of
using the money, if necessary, for
current expenses. There was no
other reason for making the
change in Treasury bookkeeping
and treating the gold reserve as
part of the general fund. Why
then should not Secretary Carlisle
treat the proceeds of a new sale of
bonds in the same way?
Another flimsy partisan objec-
tion to Secretary Carlisle's policy
is in his promise to redeem the
bonds in "coin". In this he simply
follows the language of the law
authorizing him to make this issue
Had he needlessly used the word
'.gold" he would have only furnish
ed n weapon of attack to the Popu-
lists and other foes of sound mon
ey. The fact that offers for the
bonds far exceeding the amount of
the issue have been made by the
financial institutions of the coun-
try, some of them at less rate
than that fixed AS minimum by
the Secretary, shows how futile has
been this partisan attempt to en-
barrass him. Everybody knows
that bonds sold for gold will be re-
deemed in gold, and that payment
of such bonds in deprecated coin
would be an act of public dishonor.
On the part of the Populists and
other cheap money champions
there has been quite change of
tune since Secretary Carlisle made
this offer to sell bonds in order to
maintain the gold reserve of the
Treasury. During the Silver de-
bate in the Senate they asked:.
"Why are not the gold heaps in
the Treasury vaul;s put in circula-
ton? Is this mass of money lying
there only to be looked at by its
custodian" 1t then suited these
cheap statesmen to, concede to the
Secretary the power to pay out
this gold. Now the wind blows
from another direction, and they
denounce the Secretary for paying
out the gold for ordinary purposes
and for issuing bonds to recuperate
the declining store. For months
the Secretary has been compelled
to use this gold in order to meet
current expenditures, but neither
Senator Morgan nor any other
Populist has demanded that the
Treasury suspend payments be-
cause the gold reserve afforded the
only available funds for the pur-
pose. Such course might have
involved, among other disasterous
consequences, a suspension Of pay
ments of the salaries of the men,
bers of Congress.
OF course it is matter of regret
that the condition of the Treasury
is such that the refusal of Congress
to act promptly has compelled Sec
retary Carlisle to resort to the
power conferred on him blythe re-
sumption law. He has appealed
in vain to Congress to authorize
the issue of $20O,O00,OOO three per
cents. or SO much thereof as might
be needed to maintain public
credit. The Republican champions
of honest money and the Silverites
have treated the Secretary's re-
Communications with like indiffer.
ence. Not even the advocates of
the coinage of the silver seignior-
age nor the champions of a new is-
sue of greenbacks have manifested
and zeal in behalf of their favorite
schemes of financial relief.
And now when Secretary Car
La