Evening star., 1895-09-16
GOVERN MENT FINANCES
Proposition to Retire the Greenbacks by
Redeeming Them in Bonds.
This May BE Carried Through Both
Houses, but Much Opposition
is Expected.

There are several different theories about
| what is going to happen concerning the
government finances. The views express
| ed Ey Senator Gray in an interview in The
| Star Saturday. favoring the retirement of
the greenbacks by their redemption in
| bonds. are understood to accord entirely
with the idea of the administration.
The bankers and eastern financiers gen.
orally have the same thing in view. There
fore. when the proposition is recommended
| to Congress by President Cleveland, as it
Is understood it will be, the division of the
question will probably not be on party
lines.
1t is expected that Mr.. Reed and the
eastern representatives without distinction
as to party. will advocate the conversion
of the misunderstanding debt represented
by the greenbacks into interest-bearing
bonds.
The preference of the interest bearing
ever the MISUNDERSTANDING debt Is on ac-
count of the fact that the latter is de-
mand obligation, payable in gold. while the
other leaves the hour of settlement definite
ly in the future.
The Expected Opposition.
The men who are expected to oppose the
retirement of the greenbacks are all the
anti-adminstration democrats and many of
the western republicans.
Men representing districts in which there
ably to a man vote for the proposition.
1t IS not impossible that a majority in
the next Congress my be got tc support
the recommendations of the President in
this respect. If this should prove true.
the suggestion would be as to how far the
opposition would carry the fight.
The administration will have to go to
Congress with the confession that the
ShortneSS of the revenues now compellS the
reissue of both the greenbacks and. notes
of 80 independently of the requirements of
law as to the former, and that their re-
demption cannot come in the form of a
liquidation of the debt.
Eject of Such u ConfessiOn.
A confession of this sort, involving the
ineftcency of the tariff law as a revenue
producer, must go far toward satisfying
the partisan spirit of the republicans and
disposing them to that which their con-
sttuents favor, even if it is in accord
ance with the recommends tions of an op-
position executive
This however, will not apply to the re-
public2hs who are not Influenced by the
banker sentiment, and all the silver men of
both parties, the populists and those who
believe in the greenbacks as a currency
viii stand in the opposition.
In the House, If it is true, as believed,
that Mr.. Reed is in sympathy with the re-
tirement of the greenbacks, 1T is probable
that minority could not prevent the pas
sage of such a measure But in the Sen
ite lHe IidJoTlty IS TO De Ine Other way,
and even If it should prove otherwise, a
minority could easily defeat the measure.
1t all depends upon how far they would
regard it as good policy to go.
What Silver Men Might Do.
The tilbuster against the repeal OF the
Sherman law collapsed suddenly because
the opposition thought they had more to
gain from letting it go through. with the
prospect of a failure of any benefit, and,
therefore. a fulfllment of their predictions.
If a similar fight should come up over the
redemption of the greenbacks, the silver
men might conclude, after making this
would be better for silver in the end to
permit these holding different views as to
finance go to the extreme length OF their
policy and retire everything but gold. 1t
is not impossible that they may take this
position.