The herald., 1894-01-31
BR OUGHT UP WITH A ROUND TURN

From the very start the HERALD has
insisted that the power of Carlisle to
issue new series of bonds under the
redemption act of 1876 was OF doubtful
legality, and that bankers and capital
ists would be apt to hold back their
bids as long &c any cloud whatever
hung over their validity. Against this
view Of the case came the announce
ment that bankers were besieging the
treasury with offers to take the whole
issue on premium over the price fixed
for them by the secretary OF the treas
ury. His limit of III was overbid, and
as high as 100 was offered.
But G change has come over the
dreams OF the bankers. The Knights of
Labor carried into court the question of
Csrlisle's right to fasten s50,000,00
debt upon the country under an act
passed for q special purpose that had
been accomplished; and then the judi
ciary committee of the house reported a
resolution declaring that the secretary
had no legal power to issue the bonds.
Carlisle went before that committee and
argued his side of the question, doubt
less with all the force aud constitutional
logic he could bring to bear on the sub
ject. In spite OF his argument, how
ever, the committee by large majority
reported against him. These two pow
erful intervsntions have had the effect
to bring the bankers who were so eager
to buy the bonds to their normal senses.
Many of them withdrew their hasty
bids, and there is not now any great
rush among them to make fancy bids
for the issue.
The act of 1875 creating a gold fund
for the purpose of securing resumption,
and authorizing the sale of bonds for
that purpose, can hardly be distorted
into permanent law giving the secre-
tary authority to issue bonds to meet
the current expenses of the government.
But even if it could be so construed, it
would be impolitic and unwise to cad
die the country with an increase of the
permanent debt when congress is in
session and may DO depended upon to
meet the pressing financial emergencies
of the treasury. The gold fund in the
treasury has dropped to $65, 000.0 900, but
there are other available cash assets
which the government can use to meet
its temporary difficulties. The seignior-
age upon the silver in the treasury
amounts to about $4,000, 600, and that
would be available if the gold fund
should fall as low as the secretary antici-
pates.
But when we come to examine this
question of issuing bonds for the pur-
pose of fortifying the gold fund, we are
confronted with the fact that it will not
accomplish that object. If the bonds
are sold we shall witness q game OF
rotary motion in the treasury depart
ment. Gold will be bought with green
backs at the sub-treasuries. and the
bonds will be bought with this same
gol6. Where the gold fund is to be
benefited by this process 1t would be
difficult to see. 1t will not afford it the
relief required, and will saddle another
half hundred millions of debt upon the
nation. 1t seems as if this administra-
ton, which was elected on Demo-
cratic ticket to carry out the Democratic
policy and principles, is determined at
every opportunity to fly in the face of
ths very policy and principles of the
party which elected it. If the party were
estructible-whichi it is not-Clevelsnd
and Carlisle would have buried it fifty
fsthoms deep by their hammer-headed
and unpstriotic excursions and absurd
experiments in government.