The Providence news. (Providence [R.I.]) 1891-1906, 1895-12-28

n gold reserve as may be required TO re-
move the distrust aud apprehension which
have precipitated the present emergency.
"The bill reported by the committee on
waysyand means falls very far short OF the
requirements OF tho situation and its pas
sage will not bcncflclally affect the situa-
tion with which we have now to deal.
Our difficulties were produced and have
been prolonged and aggravated by tho
fear chat, Notwithstanding all the efforts
Of the administration, we may ultimately
be unable to procure gold for the purpose
of rcdceming our notes, and, consc-
quently, be forced to silver basis, and
this fear cannot be wholly removed until
some action Is taken by congress clearly
indicating purpose to pay all our obliga-
tions In gold when demanded by holders.
although there is no substantial rea-
son TO distrust the character of our notes
or other securities, or 10 doubt the pur-
pose OF the government TO maintain gold
payments, the facts that there has been
no Legislative declaration upon the subject,
and that no legal authority exists To
make them expressly payable in gold, not
only prevent the sale of our bonds for the
replenishment OF the reserve upon the
most advantageous terms, but increase
the demands for gold by the presentation
of notes at the very times when we are
least able to meet them without injury TO
our credit.
IF IL was not generally expected that
the three classes of bonds already author
tied by law will be paid in gold at ma
turity, they could not be sold, except at
an enormous sacrifice, but even this gen.
eral expectation Is not sufficient TO al-
together satisfy investors. and especially
in times of financial disturbances.
"GoId" Instead OF Coin"
"About $40 000, 600 could have been saved
TO the people on the last issue OF bonds IL
congress had consented TO make them
expressly payable in gold, instead Of coin.
This condition Is not at all improved by
the pending bill, which still requires all
bonds 10 be payable in coin, as heretofore,
and confers no new authority, except the
power to issue and Sell 3 per cent bonds,
also payable in coin, after five years, with
interest payable in coin semi-annually.
'At the present time. our 30year per
cent bonds, with interest payable quar-
,erly, are selling In the markets at rates
which yield investors more than 3 per
cent per annum, and this fact should not
be overlooked in determining whether or
not 5.year 3 per cent bond could now bo
sold at par, as the pending bill requires"
What will be the effect OF the provision
prohibiting the sale OF bonds except after
public advertisements"
Assuming that n sufficient amount OF
gold could be procured in that way, any
secretary of the treasury would prefer To
advertise for the bids, but it is evident
that there may be circumstances when
prompt action is required in order to pre-
serve the credit Of the governments, and in
such cases peremptory provision requir-
ing public advertisement might defeat
the object of the law and prevent any
sale"
Speaking OF the second section CT the
bill, which authorizes the issue OF GER
tificates To meet deficiencies in the rev.
enue, Secretary Carlisle said:
"While there is no necessity at the pres
ent time for resorting TO the exercises OF
the power which that section confcrs, and
may not be in the future, the secretary of
the Treasury ought always to have the au-
thority 10 issue and sell or use in the pay
ment Of expenses short-time certificates
or bonds of the character described in that
bill. Such authority ought 10 have been
conferred upon him long ago, and it ought
to be made permanent isstead of being
limited TO So, 600, 600. as it is by the bill.
Except as to this limitation, the second
section of the bill is u good one"
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