The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-09-17
Hands Premium on Gold.


every bond sale means a premium on gold
We are paying a premium on gold every
time we sell bonds to procure II. Cold Is
at a-premium here and at premium IN
Europe The premium is really levied on
the masses here by the issuance Of inter-
est-bearing bonds
As the foregoing statement is new
phase Of the thread-bare subject it is
worth a little investigation. In one respect
it is similar TO all the arguments and as
sertions of the silverites. namely, it is
without facts to support it. How does Mr..
Bland show that gold is at a premium in
Europe? No bonds are issued there to pro-
cure it, BY unwise legislation. for which
none is more responsible than Mr.. Bland
himself, an extremely vicious financial
system has been adopted in this county. To
administer our financial affairs in har-
mony with it the government is obliged
to borrow gold. If Mr.. Bland and his
friends had helped the President and sec
rotary Of the treasury to take the govern
ment out of the banking business there
would now be no need Of borrowing gold.
Three times, and on different theories.
congress was appealed to for relief. and
no relief was given. The government was
required to do credit business by forcing
a loan on the people for the purpose of
buying silver. and to pay an old war debt.
AS in any other business security was de-
manded and the government has had to
purchase gold to provide that collateral.
The alleged premium then is no more than
every business house is forced to pay
f-.-T.-
aged. Wisdom dictates a continuance of
that policy until the mistake can be cor
rected. To abandon that policy would be
to proclaim the nation a bankrupt. A
wiser man than Bland has said answer
o fool according to his folly" 1t will there
fore be in order to take Mr.. BANDS state
ment as true and ask as to whose premium
is the wiser that of the President in his
bond sale or that of the silverite through
his free coinage? The President has is
sued already $162, 10000 of bonds. The
principal is an asset, and has gone to pay
the expenses of the government 1t can
not be viewed as a premium under any
conception of the subject. But let us grant
that the interest Is such. 1t amounts to a
sum in the neighborhood of $5,000,OO0. With
this premium over Sl.O0O,0OOC01 in silver
and paper money is kept on parity with
gold. The cost would be then at the rate
of = of 1 per cent. For two years the
President has kept every mans money
as good as gold at a cost of only y of
per cent per annum. But, suppose he had
followed the advice of Mr.. Bland and free
coinage had been granted. The premium
as illustrated in Mexico would have been
at least As per cent. Which is the
best horse sense meeting not
a theory but condition which
confronts us, premium of As
per cent. or a premium of Y of per
cent? Would any sound business man
hesitate as to the course he would pur-
sue?
But the silver tongued orator in true
notes of the demagogue. says the pre-
MUM is levied on the masses through the
loan system. on whom would the premium
fall if free coinage were adopted? Sup
pose Mr. Bland were given his way, and
that tomorrow his views should be en-
acted into a law. What would follow?
Next Saturday the hod carrier would col
lect 50 for his weeks work. but they
would be worth only $l.56 The dry goods
clerk would draw his months salary of
SO but it would be worth only $26. The
widow of the man who died the week after
would collect her $1,000 insurance money.
but it would be worth only $500. Who
would pay the premium, on gold? The
laborer. the clerk, the widow? The masses
of whom Mr.. Bland is so fond and whom
he seeks to lead? If Mr.. BANDS views
should prevail they would find out very
soon who would pay it.
If the friends of sound money should
consent to free silver coinage. Mr.. Bland
and all the other silverite leaders would
be so unpopular in very short time that
they would be driven from public life for
ever. At present Mr.. BANDS utterances
are harmless. except as they hinder the
employment of capital in new enterprises
What's the Matter with koIb.
What can be the matter with Kolb. of