New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-11-14
BONDS. NOT INDUSTRIES.

President Cleveland will not be cautiously
criticised by Republicans for having determined
10 issue SjOOOOOOO more bonds. They rccoG-
nizc that the responsibility is his. and that he
has TO face party which is in the last degree
vicious and dangerous in its financial tcnden-
ccs Iut there is reason 10 doubt whether me
new issue will prove beneficial on the whole,
except to speculative or partisan Interests which
should not govern action. 1t has been an I'M
portant fault Of the President that in Judging
and seeking public prosperity he has thought
less than he should have of the employment and
wages of American industry and has too often
been governed by partisan interests. as when
he refused to call an early session Of Congress
last year. and when he allowed the Tariff bill
to become law which he was not willing TO
sign The desire to get bonds issued before
Congress can make another exhibition Of its in
capacity and unwor,hincss is natural for par
tisan, bur II Is an open question whether the
Government will in the end be helped rather
than hurt. SO a speedy issue of bonds may give
illip to speculation. but it is questionable
whether it will help industries that are strus-
Cling to revive.
When the last issue Of bonds was effected
stocks were pushed mp an average Of 81 per
snare Tor rallrn1tlS ana 81 ~ INI ~i'll' l'i
Trusts. but only for short time; FOR in less
than two weeks stocks were as dali and rs low
rs before II is well remembered that the de-
sired effect upon general business was not
realized. Wheat and cotton were lifted shade,
but Immediately fo lower than before The
issue Of bonds based on the idea, desperate
" urged by Free Traders then as now. that
doubt about the ability Of the Government to
maintain gold payments was the main cause Of
depression. But the volume Of actual business,
measured by ccar1ngS throughout the country,
did not increase. but declined in February after
the issue OF bonds. The truth was and now Is
that monetary danger has had very little 10 do
with the activity or The wages Of industry.
At this season wheat and cotton and other
products ought 10 20 abroad largely and the
automatic regulation of prices 10y the extent Of
the foreign demand and the condition of cx-
changes is not thing 10 be arrested without
necessity. An ISSUE Of bonds will probably send
many securities abroad instead Of products. and
tend TO encourage importation Of goods in place
If those manufactured here Both at home and
abroad il will draw attention strongly 10 the
excess Of expenditures over the revenue, and To
the inadcquacy Of the new revenue law. II il
were true. as Congressional committees assert
ed, that the new law would yield large sur
plus after January |. there would be far less
occasion for borrowing money within about Il
month Of that date than there last August.
when the free gold Reserve in the Treasury
was SO. 100000 smaller than II Is now. An issue
Of bonds is therefore strong evidence that the
new law will fail to provide the necessary
revenue
There is another phase which the President
seems 10 have overlooked In little than
a fortnight Congress will meet. maddcncd by
defeat and factonal strife, and still further in
famed by an issue Of bonds for which author
ity was refused The large body Of Democratic
members who think their only chance now is
TO appcasc the PoIullist element. will an
occasion TO attempt new monetary legislation.
That effort and the agitation attending ii will
not strengthen the credit Of the Government,
nor will it tend to help confidence and business
revival 1t Is therefore all the more question
able whether, in deciding TO issue bonds AT
once the President may not again be consider
Ing narrow rather than National interests.