The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-01-11
The Condition of the Treasury.

| The Condition of the Treasury.
That the Secretary of the Treasury is
greatly in need of money is well under
stood. He spent an hour with the finance
( committee Of the Senate on Tuesday, stat
! ing the treasury's condition and its needs.
/ The balance at the secretary's disposal is
very small and the gold reserve has been
/ drawn upon until it has fallen to a point
where it is beginning to attract attention
and excite comment No uneasiness is felt,
such as there was Just before the repeal of
the purchasing clause of the Sherman
silver law, because there is entire conf
dence in the ability of the government to
meet all demands upon it.
The question now is, how shall the
money the government needs be obtained
1t is understood, of course, that in time
new sources of revenue sufficient to supply
the needs of the government will be pro-
vided. What is wanted now is money for
immediate use.
There is a good deal of opposition
among members of congress TO issuing
bonds. Those opposing a bond issue argue
against an increase of the public debt.
They would prefer an issue of greenbacks
or the coinage Of the seigniorage of the
silver bullion nov in the treasury vaults.
But an issue of greenbacks would be an
increase of the governments obligations
aud so would be, in measure, an issue of
silver certificates based upon the coined
seigniorage.
While nothing has cropped out as
to the probable recommendation of the
Senate finance committee it would not be
surprising if a bond issue should be fav-
ored. There is great deal of idle money
for the reason that the people are afraid
to make investments. They nave not got
over the scare of the money panic of last
summer, and the depression in business
discourages investments in railroad and
other securities and business enterprises.
There is, however, the utmost confidence
in the government, and government bonds
bearing a low rate of interest running
from ten to fifty years would be taken
quickly.
1t is impossible 60 make satisfactory
estimate Of the amount of bonds that
would be needed to meet the govern
ment's wants. A new revenue system
will be in operation in a few months,
however, and it will be possible to reach
a pretty fair conclusion, within year, of
the amount it will yield. Perhaps $780,
600 900 would be sufficient to supply the
treasury until the revenues equalled the
expenditures.
An issue of bonds would put into circu-
lation great deal OF the money that is
Luz, "a - IA Ii
Secretary of the Treasury to go on with
the public improvements for which APP
preparations have been made. These
public improvements would give work to
laborers and idle mechanics, and would
infuse new life into business
While we are not welded to a bond
issue, and are willing to accept any other
method for satisfying the treasury's
needs that is better, we do not at present
see that there is any better method. 1t
is true there is a good deal of opposition to
increasing the public debt, but it should
not be forgotten that the debt has been
paid off at rather rapid rate. Indeed,
the calling in of the bonds NAV have
helped to produce the money panic of last
summer, because the national bank cur
rency, being based upon bonds, is con
tracted when the bonds are called in.
If bonds should be issued the country
will not hold the Democratic party
responsible for the condition of the treas
ury which makes the issuing of them
necessary. The Republican party is
responsible for its condition That party
enacted the laws that make the expendi-
lures greater than the revenues.