The Madisonian. (Virginia City, Mont.) 1873-1915, 1895-08-17

tage. They buy bonds of the Unlreo
States, as they buy all bonds, only after
sareful scrutiny Of the terms on the face
of the bonds and of the laws by author
ity Of which these bonds have been is
sued. They look sharply to the figures
which show the dates Of payment Of
principal and interest; but, above all
and rising beyond all other considera-
tions, they look to the medium, or, as
they term it, the standard in which the
payment is, by the terms Of the bond,
to be made.
To suppose that such a feature is neg
lected would be to suppose that public
creditors, the keenest Of men, had lost
their cunning. Every bond ever issued
has in plain terms stated OF, it's face the
authority for it's existence. 1t contains a
clear citation Of the law Or laws Which
constitute the reason for its being. These
laws are open to public inspection. No
class Of persons better than public cred
itors SO we'll understand the limitations
which the laws Of all civilized nations
place upon the functions of executive
officers with respect to issuing bonds or
mourning debts or obligations on behalf
OF their country. They know that the
duties Of those officers in connection with
loans are specified in the laws by which
the loans are authorized to be effected.
Hence these loans are examined as with
q mental microscope to see that no doubt
exists as to the authority of the officer
who executes the securities, and as to all
other particulars concerning payment Of
the obligation. If they did not observe
on the bond the plain printed statement
that it was payable in the standard coin
Of the United States Of July IA, 1870,
they must have been blind indeed.
I have W heard q denial by any
one having knowledge Of the legislation
under which the bonds were issued that
it is the legal right of the United States
to pay those bonds in either gold or sill
yer coin. 1t is said that at the time Of
the negotiation of the bonds silver mon
ey was out of use in this country. The
sufficient answer to that is that gold
was equally out Of use. It is said that
the bonds were sold to citizens OF SUBJ
jects of countries in which silver was
not recognized as money. This was GER
tainly not true Of Germany, in which
country early and considerable sales
were made.
Germany was on the silver standard
until December, 1871, and had consid-
cradle silver in it's coin for q long time
after that. Besides, our bonds were not,
either by their terms or by implication,
payable in foreign countries or in the
money Of those countries. They were
payable within the United States, and
it was distinctly affirmed on their face
that they were payable in dollars Of the
United States. If the citizens or subjects
Of foreign countries who bought such
bonds did not understand what a dollar
Of the United States meant, they could
not have had the slightest difficulty in
a~scertaining, and Of course they did as
certain.
The Fall Of rrsces-A "Premium" Which
Producers Have to Pay.
When the number of dollars in q coun-
try is from any cause reduced, there is
a tendency to a fall in the prices Ct
commodities. If, then, a man be en-
gagged in productive operations in this
country, and if by reason of the outward
flow Of gold to meet foreign payments
a fall takes place in the prices Of the
products Of his labor, compelling him
to accept less for those products than he
otherwise would receive, he suffers a
loss which, though not called a ''pre-
MUM, y is in tenor and effect a premium
on gold. So far as he is concerned he is
SO much the poorer by reason of the out
flow Of the money of the country.
Why bubble about names? In order
that a payment may be entitled to be
called a premium, and to involve the
serious consequences attributed to a
premium, is it necessary that it shall
be paid by a particular person? If a
farmer, planter Or manufacturer in this
country is compelled to pay 800 through
the medium of products, the prices of
which have been to that extent reduced
owing to the maintenance of the gold
standard, what but the mere name is
the difference between that mans pay
ment and the payment of the banker OF
broker who disburses 800 a a differ
ence in exchange aud ON his books en-
tiers the amount as q premium" If an
American farmer, halter or shoemaker
has to give more Of the products Of his
labor for gold. what divinity doth hedge
around the American banker or broker
which entities him to call his occasional
payment q "prenlium," while the con.
slant and persistent payments of the