The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1894-11-19
BONDs!
The Record of a Century of the fte-
public Is Now Broken.

mOney-Somethlng that never happened De-
fore in time of peace since We had a govern
ment. From January list to November l.
1894, the public debt, less cash in the treas
ury. Increased $50. 00o,000 and the new bond
Issue will further increase the bonded DEBT
by S50,000000. Circumstances in connection
with this latest bond circular leave no room
for doubt that the New York bankers con-
troll absolutely the financial policy of the adj
mlnistradon, that they determined upon
another issue of bonds, and that Mr.. CleVe-
land agreed 10 let them have IL, not only
without consulting his secretary OF the
treasury, but when he knew MIR. Carlisle
was opposed to it. Furthermore there IL
good reason 10 believe that proposals for the
purchase OF bonds are invited now because
it is feared that when congress meets stop
will be put to the whole business.
Let US look at the condition OF the treas
ury. On January !. 1894, the cash balance
was SSiOS2. J99; on November 1st, ii was
SlO7. $40. 1i5-an increase Of 25,25O,0OO, with
every prospect of a further increase as the
new tariff gets fairly at work. The gold re-
serve was restored by the first bond issue TO
500. o.O0O in February, 1894, but it fell to
S5l go 607 on July LIST, ana rose to Sol 3bl, 80
on November LIST. 1t has increased nearly
Sc &c., 600 in four months, and yet we must
have a bond issue now /" increase ii furth-
err when IL is growing itself, though no
bonds were necessary on July list, when IL
was at it's lowest ebb. The fact is that the
New York banks didn't then want bond
Issue, or if they did, couldn't get it with
congress in session.
There is no law authorizing the issue OF
a gold bond or permitting the secretary or
the treasury TO sell bonds for gold only
though Mr. Carlisle called for sold or goid
certificates in both circulars. 1t is not, how
ever. by any means certain that ali the solu
that Mr.. Carlisle receives from his new IS
SHE will be so much net gain to the treasu-
ry Under the proposal OF January II, 1894
there was received at the various suDtreas-
urias between February LIST and l4th, s52,oiS'-
s25 in gold coin and S4225,6 93 in gold certih-
Gates, in all S.. 5lS. Between these dates
there was drawn out of these subtreasuries
s.. 6sg, 355 in gold in exchange FOR coin notes
and out OF the New York subtreasury SlO,-
243 TAP in gold in exchange for greenDachs.
both sums amounting to $lL9456n. 1t IL
very clear that the most II not all or TINS
nearly SiS,00O,0O0 IN gold drawn from the
treasury was paid right back into IL TOT
bonds, so that nearly third of the sold re
ceiyed by the treasury on account or the
bond issue was furnished by the treasury
itself In addition 10 this some bonds were
sold for grecnbacks directly, as, Tor IN
stance The New York World of February
stn said: AT the subtreasury yesterday the
deposits 10 tie bead account aggregated
81. g52, 1883, OF which about half was in
Ereenbdcks."
II may be that Secretary Carlisle will re-
fuse sreenbacks for his bonds, but all the
holder has 10 do win be to draw the gold
out Of the treasury with his Greenbacks and
then pay his sold back into the treasury
for bonds.
The gold reserve on February l, 1924,
was S55,050,1 10; on November lst. II was
SCI ,S0l, S26-a net loss OF $i2SS,2i9 in ten
IA n
What good has the bond issue done anybody
except the bankers VINO wanted a safe place
To put their Idle money? These people can,
N thirty days, should they see TT. run down
the gold reserve to less amount than II
ever has been and compel another issue OF
bonds.
with $ai6,Oa00oO in greebacks constantly
outstanding there was never any troupe
with the gglu reserve Of SEQ, geo until MIR.
Cleveland became president FOR the secohu
time. ia March. 1883. on April LIST the re
serve was zi.), oGe oQo; on May lst it had raj
sen 10 s51o.I. $50 and while the amount ebbeu
and flowed. the recession was steady I'M
Ill The boud issue Of February, 1894.
The New York banks wanted bond Is
sue in April, but Mr. Cleveland was not
ready for Il 80 that the banks began TO
raid the reserve. and by May reduced it for
Che hrs1 time below $lC0WJ,H9 on ApTi.
lsth there appeared in The Boston Herald
a Washington dispatch OF the day before,
rom which / take this extract:
Consequently Il can be stated positively
that there Will be 80 new issue of bonds
unless the necessity OF replenshing the
Si0GGj0,0c0 reserve compels it. This cintin-
ggney the administration thinks will he
avegted by the policy it has adopted first
OF suspcnding the issue OF gold certificates
second rcdeeminS the Sherman act trcdsu-
r. notes in silver only; third, using the
S.g5G31. 900 reserve TO redeem greenbacks and
erc.nEac6s alone The orders for the last
lTo moves are Withheld for a day TO tho,
inasmuch as there is stin a balance Of free
gold although it Is only $4,000.
This policy was in all respects lawful
policy. a. IL would have been a wise policy.
= rr0viso to section II Of the act OF July H.
$50 directs the secretary of the treasury
10 suspend the issue Of such gold certih-
Gates whenever the amount OF gold com
ana gold bullion in the treasury reserved
Tor the redemption Of United states notes
falls below SI00000,000" This is the only
mention Of a gold reserve in the statute,
and it shows clearly that it was intended
To- the redemption OF the greenpack5 then
outstanding and ought not TO be used for
the payment Cf coin notes lcgislated into
existence eight years Afterwards
The second section of the sherman act OF
July H. 1890 ordered the seer tary Of the
treasury TO redeem such notes (the con
notes. in gold or silver coin at Ms descre-
ton" and the third section directed him 70
coin, OF the silver bullion purchased under,
the provisions OF this act as much as may
be necessary to provide for the redempt on
of the treasury notes herein provided for
The policy outlined by The HeralTs dis
patch was. therefore strictly in line Win
congressional legislation and policy MT.
Cleveland. however, reversed this policy IN
tgenty-four hours and directed that al the
coin notes under the Sherman act should
ue paid i'm gold. All our recent financial
troubles date from this decision. The New
York banks raid the treasury, not with
greenbacks but with coin notes, and with
these same notes have forced two bond is
sues in ten months. They can repeat tho
operation whenever ana as often as they
like BANDS so-called segniorage bill
would have prevented a second raid with
the same note. as ii would have been chang
ed into a silver certificate whenever il came
into the treasury. Under the law now II IS
nj once rcissued and so may be presented
FOR gold again ana again.
The bond circular OF yesterday differs
from that OF January Il, 1884, in one very
important particular. The J2nuiy circular
had an upset price OF 1li223. which, for a
per cent bond is equivalent to a per cent
bond ut par while the November circular
is silent on the subject. AS the first issue
is now worth ll9 to 10 it is not likely that