St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1894-02-03
THE NEW LOAN.


Every attempt Of the enemies Of the
new bond issue to throw discredit upon
it seems powerless to affect the con-
ridence of the fnancers and the peo-
pie generally in its validity and de-
Sirableness as an Investment. The
secretary OF the treasury is in receipt
-of bids from all sections which. if ac-
Ncepted, would more than exhaust the
entire issue. 1t is q notable fact that
all of the bidders-if reports from
treasury sources are trustworthy offer
a premium over the minimum price
fixed by Secretary Carlisle IN his call
for proposals, and the government will
therefore receive considerable sum in
excess of that expected by the friends
of the measure.
All parties and classes are practically
united in the conviction that the bond
issue is necessary in order to protect
the credit of the nation. The money
that should have been in the treasury
is not there. 1t was squandered by a
previous administration, aud, however
we may condemn the extravaganza, we
cannot escape the necessity forced npon
uos Nv 5OOu GlH COtiiC Vi Vail lCSICLo
of useless examinations. The milk has
been split. and that is the end of it. 1t
will do no good to cry over it.
Quite number of good citizens re-
greet that the new loan is not popular
one in the sense of offering opportuni-
ties for investment to people of moderate
means. There are tens of thousands of
our ciLiZenS who would have gladly
availed themselves of the opportunity
of investing their small Accommodations
in government bonds. provided they
could buy them in denominations of
800 and over. The interest is not large,
il is true, but the security is the best in
the world. No one doubts the ability of
the government to meet all its obliga-
tons; no one doubts that, if any cloud
should rest upon the bonds, congress
would remove it without delay, which
ever party were in the aseendency. Even
the P0pulists would strive to the ut
most to protect the credit of the govern
meEt from impairment and the holders
of its bonds from the loss of a single
cent. There is no controversy on this
subject; there can be none as long as
American statesmen are patriotic and
honest crtiZens. And whatever may be
the differences in principle and policy,
there is complete union on the policy of
maintaining the credit of the govern
ment. at whatever cost.
Secretary Carlisle'S exposition of the
law bearing upon the issue Of bonds is
so clear that no man of ordinary intelli-
| gence can entertain the slightest doubt
of their legality. He shows that al
though the law under which he has
acted contemplated the issue of bonds
for the purpose Of assisting i'll the re-
sumption of specie payments, no matter
| what the secretary OF the treasury may
do with the money, the validity of the
bonds will not be affected; and there is.
therefore, no reason why any one
| should hesitate to invest in those Sc
curities on the ground that the proceeds
might possibly be used for other than
redemption purposes.
The temporary relief afforded the
treasury by this expedient should not
| induce a lax or wasteful expenditure of
| the public funds. but rather desire not
| only to prevent the issue of more obliga-
| tons. but the redemption of those now
and previously contracted as soon as
| possible. We should not pursue the
financial policy of the immortal Wilkins
| MicaWDer-paY one note by issuing an
| other |. o. u. Yet such an eXpediency
may have to be resorted to frequently
| unless the expenses of the government
| are reduced to conform to its income,
and to gradually reduce outstanding
obligations. We are yet in the dark as
to the results of the enactment of the
| Wilson tariff bill. 1t is hoped and be-
! lieved that it will produce enough rev.
enue to meet all expenses of the gov
eminent and leave balance for the
sinking fund. If these expectations are
realized, all will be we'll. But trade
conditions are subject to change, and
! in days such as these ''the best laid
schemes of mice and men gang aft
| aglee." Emergencies that are now I'M
dreamed of may arise. because of which
therevenues may be decreased ard the
expenses increased beyond the most
conservative estimates. The only
| safety, therefore, is in the closest econ
omy and the most rigid inspection of
| all outlays-in strict collection of all
dues of the government and the enforce
| ment of business methods in the con-
duet of public affairs.