New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-18
THE OFFER OF FIVE PER CENT BONDS.

THE OFFER OF FIVE PER CENT BONDS.
Thirty-three years ago the Democratic party
went out of power borrowing money to meet
Il Treasury deficit created by It's incompetence
Within year after its return TO power Il great
deficit created by its incompetence again com
pels it TO borrow. Further. it IS compelled to
use for that necessity n Republican law enacted
eighteen years ago. which was FOR years de
noupccd in every Democratic meeting at the
West and South as a shameless robbery OF the
neonle for the benefit of bondholders and is
forced TO employ this same old act because, rs
lis chairman Of the Finance Committee in the
Senate publicly confesses the Democratic party,
through its fractional divisions is incompetent
to PASS any act for the relief of the Treasury
or the defence of the public credit. Humla-
ton could hardly be more complete.
Secretary Carlisle was extremely anxious not
TO issue bonds bearing a high rate Of interest
In his annual report he had stated the objec
tions TO that course so strongly that he seemed
almost committed against an issue Of bonds
under the old act any terms. lie mas ap
pealed earnestly to his party in both houses Oh
Congress to make some other ana wiser pro-
vision for public necessities. Only few days
ago he made public form Of act which he had
prepared at the suggestion of the Senate com
mttee and strongly recommended. The 1gho
| rance and prejudice to which his party mas so
long pandcred in Western and Southern states
| renders him powerless. and he Is now oDhged'
| not only 10 issue bonds, but TO Use Tor mat
| purpose the act which Democrats so indignant
| " denounced in their National platform or lo'o
| Senator Voorhees, publicly states that 1t Is not
| practicable to get action by the Finance Com
| mittee or by the Senate without prolonged de-
| Law and controversy with the silver men, ana
| that the result Of that controversy would ne
| extremely uncertain. He thus officially Justifes
the statement which The Tribune has repeat
| elly made in effect that the preponderance OF
| n yicious and dangerous element in the Demo
cratic party renders it incapable OF providing
intelligently for the necessities of the Govern
| ment.
Secretary Carlisle has decided to offer ten
| wear five per cent bonds " on n three per cent
basis" to the amount of S5OOO0O00 AS be-
| tween the three classes Of bonds authorized lie
has chosen sensibly 1t is to he presumed that
he has assurance that the bonds offered can
he sold on such terms, as it would have been
n grave mistake to expose the public credit 70
the risk of failure in the proposal made. The
bonds authorized in 1870 have one advantage
that they were formally declared by the Gov
in gold though at that time there was not In
the country silver coin enough to pay even
small fraction Of the bonds issued nor was
there any law authorizing additional silver coin
age But now the Treasury holds 3G0,OOO'UO,
of standard silver dollars and can add 10000,
600 under construction Of law which man!
Democrats favor. Whether the present Admin
jstration will feel warranted in ple1gn Tho
faith of the Government that interest and prin
cpal Of bonds that may now be sold shall DC
paid in gold, whereas the language Of the act
provides for payment :" in coin,' Is not yet
clear Without such pledge the purchaser OF
bonds at any high figure will by his act eX
hibit strong confidence in the defeat Of the
Democratic party, and in the return to power
at the earliest possible day Of the party which
for thirtythree years has stood for honest
money and honest payment Of debts.
1t will not be forgotten that the Treasury
needs money solely because business Is de
pressed by the threat Of tariff changes. Chair
man Wilson has now admitted in the House
that this threat embarrasses wholesale and re
tail trade in woollens and in wool, and keep:
, mills idle The same effect Is seen, II not ad
mitted, In other industries. 1t is this Gripping
Of business which has reduced the revenue from
imports S3O,OOO,00O in the last six months
1t could be stopped, in large measure mt least
by straightforward abandonment OF the Free
Trade policy. If the Secretary refuses, or Is no.
left at liberty to consider this obvious ant
ready remedy, he is actually forced TO borrow
money in order to meet the first cost Of a Demo
cratic tariff.