New-York tribune., 1895-12-15
FINANCIAL FLOUNDERING.
PRESIDENT CLEvELAND's POLICY IN THE
BOND ISSUES.
THE GOVERNMENT SHOULD DESTROY THE DESIRE
FOR REDEMPTION RATHER THAN
PROVIDE GOLD.
TROY THE DESIRE

To the Editor OF The Tribune
Sir: The Presidents graphic account OF two
wears Of struggling TO maintain an adequate gold
reserve to lack statement or the reason LOT
comparative failure. TIE embarrassment OF the
Government although traceable 10 paper money
issuing to such issuing In payment for silver Dull
lion to the unfortunate choice Of time OF busi-
ness depression for the making OF tariff changes,
and to the decrease in governmental revenue com
cident with the decrease In trade. Is nevertheless
chargeable. in my judgment. to vital mistake in
the financial policy OF his Administration Posi-
bly law may have impelled him TO offer bonds for
gold only instead OF for any money OF the Cnited
States yet l do not find that he complains or such
law II any exists. or that he asks for It's repeal
The message complains of repeated depletions OF
the Treasury but II bonds to be sold for gold
only in what easter way could buyers get gold
with which to pay for bonds than by asking Tor IL
at the Treasury? And II the Government nseh
says "our demand obligations are not good enough
for us to receive in payment for our time obhga-
tons" is it likely that the world would value those
demand obligations more highly than they are val
ued by their issuer? suggestion is made that
duties should be payable in gold. thus compelling
importers 70 walk few hundred feet from the SUD-
Treasury to the Custom House in order TO carry
gold from the former to the latter. Bond buyers
alone are now put 10 similar trouble, and they
carry gold only from one Treasury window 10 an
other No good merchant or banker would refuse
to accept his demand obligations IN exchahge
Cor his time OOlgdtOns, anu IL NOuiN Hot O'N"i
to him to say II will sell time notes for cash. and
, will nav ash for my demand notes. but utterly
refuse to give my own time notes for my own de-
mand notes" If financially embarrassed II would
seem TO him TO be a very good thing TO get pos
session OF his outstanding demand notes. and he
would not worry about the existence OF law
prohibiting his destruction OF the notes.
1t is clear that when paper money comes nome
for redemption gold must he provided, but 1t is
equally clear that to destroy the desire Tor re-
demption might be much better than merely 10
rrovile gold And. Of course, II Government can
not provide gold except by the adoption OF policy
which in itself multplies the demand for gold then
surely the object of the Government should be 10
destroy the desire for redemption rather than
TO provide gold And If the policy of providing
gold by means of bond sales involves the dishonor
inseparable from the act OF rejecting any money
bearing the Governments stamp. then there Is
still stronger reason for avoiding such policy here
II must be borne in mind that until our Govern
ment began TO sell bonds for gold only. every dollar
Of our money had equal purchasing power. 1t re-
mained for the Government 10 tell the people mat
legal tenders are so, with an exception.
When the gold reserve fell below slO,GlVO the
nollcy OF the Government. in my judgment should
have been stated to be the maintaining OF the per-
feet equality in purchasing power Of all the moneys
of the United States and tnere hnouG ndNe Onid
hesitation. because such siatenehI @ @wOu'u
in payment for gold bonds. Never swerying from
this sound position the foverrment wouid noI hase
ury The existing disease. paper money redun-
dancy should have been recognized promptly ana
the natural remedy, paper money WlthdfdWaIs
should have been applied 10 the necessary extent
and within the authority of the Government uhder
present laws g., -
|, is quite true that there is authority for can
ceiling any paper. The paper would have come INTO
what paper money has done. because OF bond sales
but in a roundabout way. The Government mas
sold about $62,0000O0 of bonds and has paid out
almos; all the proceeds II the proceeds had been
made up of all the moneys OF the tnted states
instead OF gold coin and bullion the balance OF gold
in the Treasury might have been larger than To-
DAYS ba lance The difference to the country would
have been the good that comes from confidence IN
the financial position OF the Government. An un-
alterable determination to sell whatever quantity
of bonds might prove to be necessary in order TO
put into the Treasury the paper money which oth-
erwse was likely to be presented FOR redemption
wouId have given our securities good market
abroad and would have laid low the spectre of pos
sble gold d-payment failure. To sell bonds for paper
money or for any Government money when might
he offered is strike at the root OF the ev,l, ana
If carried far enough is certain 10 stop he present.
ing Of paper money for redemption: The measure
of success depends upon the vigor OF the blows
A financial policy which is certain TO be success
f,il Is a great national blessing. The people could
better stand the heroic atment incident to the
dent 10 the prevailing policy. Let the Government
take firmly the stand that any paper. redeemable In
gold is receivable for bonds The question there
after whether people choose to take gold or choose
10 take bonds. becomes question or degree or
financial ability in the person OF the secretary OF
The Treasury j. HOWARD COWPERTHWAlT
NeW-YOrk Dec. D. 1880