Bismarck weekly tribune. [volume] (Bismarck, Dakota [N.D.]) 1884-1943, 1894-12-07
REPLEN1sH1NG THE RESERVE.
A New Law For the Issuing OF Bonds
Should Be Passed.

.r--s.-.. ~ AOu D. Z ASbous j. r. nH..## INCA
During the last month the gold reserved
In the treasury for the purpose of redeem
ing the notes of the government circulate
ing now in the hands of the people
became SO reduced, and it's further deple-.
ton in the near future seemed so certain,
that in the exercise of proper care for the.
public welfare it became necessary to re-
plenish the reserve and thus maintain non
e e:;+k in the ability and determination
o. yne government TO meet, as agrsea. ia.
pecuniary obligations.
1t would have been well if in this emer-,
gency authority had existed to issue the.
bonds of the government bearing.
a low rate Of interest and matur-4
ing within a @hort period.
but the congress having failed to confer
such authority, resort was necessarily had
to the resumption act of 1875, and pursue
ant to it's provisions, bonds were issued
drawing interest at the rate of S per cent
per annum and maturing ten years after
their issue, that being the shortest time
authorized by the act. I am glad to say say.
however, that on the sale of these bonds
the premium received operated to reduce.
the rate of interest to be paid by the gov
eminent to legs than 8 per cent.
Nothing Gould be Worse
or further removed from sensible finance:
than the relation existing between 6
currency the government has issued, the
gold held for it's redemption and the
means which must be resorted to for the
purpose of replenishing such redemption
u when impaired. Even if the claims.
upon this fund were confined to the obli--
cations originally intended, and if the.
redemption OF these obligations mean
their cancellation, the fund would be very
small. But these obligations when re-
ceived and redeemed in gold are not can
celled, 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 the final rest. AS if this
We're not bad enough, we have,a statutory
declaration that it is the policyof the gov
eminent to maintain the parity between
gold inc silver, aided the force and mo-
mentum Of this ~exhausting process and
added largely to the currency 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 ne
cessity of protecting this reserve against.
depletion, and it is most unsatisfactory to
know that the protection afforded is only
Q temporary palliation.
Only One Way.
1t is perfectly and palpably plain that.
the. only way under present conditions by
which this reserve when dangerously de-
pleted can be replenished, is through the
issue and sale of the bonds of the govern
ment for gold; and yet congress has not
only thus far declined to authorize the is
sue of bonds best suited to such a pur-
pose, but there seems a disposition In
some quarters to deny both the necessity
and power for the issue of bonds at all.
I%,cannot for a moment believe that any
Of our citizens are deliberately willing that
their government should default in its
%pecuniary obligations or that its financial
operations should be reduced to a silver
basis. At any rate I should not feel that.
my duty was done if I omitted any effort.
I could make ty avert such a calamity. AS,
long, therefore, as no provisionis made
for final redemption Of the putting aside
Of the currency, obligation now used to re-
peatedly and constantly draw from the
government its gold, and as long as no
better authority for bond issues is allowed