The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1894-11-25
IMPOVERISRING PAUL TO ENRlCH
PEI Err

The rapid decline in the gold reserve
settles the question as to where the goid
is coming from to buy the new bonds.
1t is hardly to be expected that the
banks would draw heavily upon their
reserve when they can exchange legai
tender government paper for gold at the
national treasury. There Is the usuai
blowing of horns about the New YORK
banks coming to the rescue. but nobody
believes they will take single step
other than in their own interest. 1t Is
even said that the sale of these bonds
depends upon the loyalty of the New
York banks" but all such talk originates
with these same bankers, and it goes for
what it is worth. The bonds will he
sold. and the gold invested in them will
be largely drawn from the United States
| treasury, by the surrender OF non
interest bearing legal tenders. This
kind of an exchange is too
tempting to be turned down by
the New York patriots and it is safe TO
say they will get most of them. Sensi-
bic people will see that they are not al
lowed 10 hog the ''loyally" and the
| bonds also.
This, however, is of little consequence
in the deal. The stupid, the costly pro-
Visions for maintaining the gold reserve
| is all too apparent on the face OF this
| deal. 1t is like drawing from the bot
tom of cask to fill it at the top that II
takes the form of a game to enrich the
| bond purchaser at the expense OF the
treasury. 1t creates. by SO much, an in
debtedness of the government, while
government gold supplies the means
for concentrating the deal. This is the
Democratic plan-another object lesson
through which the people are to be
taught subserviency TO the few who
handle the cash. The extra session of
! congress called by Cleveland to stop the
| purchase of silver was the first step
| toward this "reform." 1t might have
been expected that a party SO intent
upon lifting the burden of woes
from the shoulders of the people, and
so laden with financial wisdom, would
have foreseen what has happened. The
cutting off of the out put of circulating
money TO the amount of 81 500, 900 every
month-no matter how it was supplied
must have been followed with universal
| disaster. 1t was the failure to provide
substitute that destroyed confidence and
| brought on the twin disaster of locking
up the gold which had circulated freely
up to that date. 10 all entretieS, the
administration was deaf as a stone, and
the country was left TO beat the waves
of an inevitable storm.
This piece of legislation carries with it,
IN great measure, the responsibility
for what has followed. Add to this the
attempt to cut down the public revenue
from tariffs, and we see a wealthy
nation, with abundant resources
and almost a plethora Of money,
in time of peace and universal pros
perity, reduced to the necessity of bor
rowing money to pay current expenses.
1t is a matter of wonder that the people
should repudiate such party or admin
istration at the polls. The greater mys-
terry is that the vote was not practically
unanimous against them.
What remains now is to worry with
the situation as we find ii. Other bond
| issues will be necessary, and further
accumulation of debt is as certain as
that public expenses goes on. The
financiers of the party are raching their
brains over plan but the public will
regard with suspicion any device COM
ing from such source. Time and
change of policy alone will brinfi our
national finances to the normal condi-
ton. and the prospect is that it will be
many a day before this syndicate of po-
litical bunglers and Wall street sharpers
Will be permitted TO "reform" our ma
J tional finances again.