The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1894-12-08
THE LATEST ISSUE OF BONDS.


During the last month the gold reserve
in the treasury for the purpose of redeem
ing the notes of the government circulat-
ing as money in the hands of the people
became so reduced, and its further deple-
ton in the near future seemed so GER
tain, that in the exercise of proper care
Tor the public welfare il became neces-
sary to replenish the reserve and thus
maintain popular faith in the ability and
determination of the government to meet
as agreed, its pecuniary obligations. 1t
would have been well if, in this emery
ency, the authority had existed to issue
bonds of the government bearing a low
rate OF interest and maturing within a
short period. Congress having failed to
confer such authority, resort was neces-
sarily had to the resumption act of 1875
and pursuant to its provisions bonds were
issued drawing interest at the rate of
per cent. per annum and maturing 10
years after their issue, that being the
shortest time authorized by the act. l am
glad to say, however, that on the sale of
these bonds the premium operated to re-
duce the rate of interest to be paid by
the government to less than per cent
Nothing could be worse or further re-
moved from sensible finance than the re-
lations existing between the currency the
government has issued, the gold held for
its redemption and the means which must
be resorted to for the purpose of replen-
ishlng such redemption fund when inn
paired. Even if the claims upon this fund
were confined to the obligations originally
intended and if the redemption of these
obligations meant their cancellation, the
fund would be very small
But these obligations, when received
and redeemed in gold, are not cancelled,
but are reissued and may do duty many
times by way of drawing gold from the
treasury, Thus we have an endless chain
in operation, constantly depicting the
treasury's gold and never near final rest.
AS if this were not bad enough, we have
by statutory declaration that it is the
policy of the government. To maintain
the parity between gold and silver aided
the force and momentum of this exhaust
ing process and added largely to the cur
rency obligations claiming this peculiar
gold redemption. Our small gold reserve
is thus subject to drain from every side,
the demands that increase our danger
also increase the necessity of protecting
this reserve against depletion, and it is
most unsatisfactory to know that the
protection afforded it is only a temporary
palliation. 1t is perfectly and palpably
plain that the only way under present
conditions by which this reserve, when
depleted, can be replenished
is through the issue and sale of the bonds
of the government for gold. and yet con-
gress has not only thus far declined to
authorize the issue of bonds best suited |
to such purpose, but there seems a dis
position in some quarters to deny both |
the necessity and power for the issue of |
bonds at ALL 1 can not for a moment be- |
ieve that any of our citizens are deliber- |
ately willing that their government should |
default in its pecuniary obligations or |
that it's financial operations should be re-
iuced to a silver basis. At any rate / |
should not feel that my duty was done |
4 / omitted any effort / could make to |
avert such a calamity. AS long, there |
'ore as no provision is made for the final |
redemption or the putting aside for the |
obligation now used to repeated |
y and constantly draw from the govern
nent it's gold, and as long as no better
for bond issues is allowed than
It present exists, such authority will be |
utilized whenever and as often as II be-
ZONES necessary to maintain a sufficient
gold reserve and in abundant time to
ave the credit of our country and make
rood the financial declarations of our gov
CARLISLE TOLD IT ALL
Tho questions Relating N mn. J,a,,1-- "a |