Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1895-03-12
FIAT VALUE.

RAJ VALUE.
Let us enuinerate the promi-
nent facts in the recent purchase
OF gold 10y the Cleveland admin
istration. President Cleveland
in his message to congress stat
ed that it was doubtful that
gold could he borrowed in the
United States or abroad unless
gold payment was promised in
the bonds, and urged an act au-
thorizing snch a promise to be-
made. With such a provision
he could buy gold on a bond
bearing 3 per cent; but on Il
bond issued under existing law,
which could promise only coin,
that is gold or silver at the op-
ton Of the government, he
would have to give 1 per cent in
terest. The difference III interest
for 30 years would be $1,000
600, which the American people
would have to pay in excess Of
what would he necessary if the
administration could meet the
terms of owners OF gold. Con-
gress refused to grant the au-
thority required, and President
Cleveland proceeded. to make a
contract with the Rorhschi!d SYN
dictate for the delivery OF gold to
be paid for in bonds amounting;
to 1852, 4OO,0OO bearing + per
cent interest and running 30
years. The syndicate was to
pay 10+H therefor, or a prem
ium Of * per cent. 1t was
claimed that the government
had reached a crisis; gold must
be had to save the national cred
it; that there was no time to be
lost, and therefore the hard
terms demanded were the best
obtainable. The sequel proves
the reverse. 1t proves that while
the gold gamblers openly attack
ed the credit of the United
States, they inwardIy knew that
it was strong. The higher rate
OF interest they could extort
FROM the president, the more
money could they make out of
the deal. The president and Sec
rotary Carlisle were either too Oh
fuse to nee through the scheme
or were blinded by unworthy mo-
tives. Observe the result.
When the syndicate which the
government had tied itself to by
an ironclad and exclusive con-
tract got ready it offered the
bonds to the public for sale. IN
20 minutes the subscription
books were closed, the entire
amount having been subscribed
at ICY or percisely II per cent
above cost to hesyndicate. This
means that by the act Of the
President Of the United States
and the secretary OF the treas
ury, who are sworn to execute
the laws and protect the inter-
ests OF the United States, a. syn
dicate Of bankers, a controlling
part of which are foreigners,
have robbed the people Of 49,
4SS, 1000 in one transaction ar
ranged for and carried out in
less than a. week. There was
nothing in the way except Cleve-
land, Carlisle and the bankers
forming the syndicate, of the
government selling direct to the
public and realizing ICY ill.,
stead OF 1O4H.
The above stated facts are
known to all readers OF Ameri-
can newspapers and scarcely
needed repetition here, but we
have repeated them SO as to H.
lustrate a point.
The idea advanced and sup
ported by many that the sover-
eign power in a government can
not create values savagely COM
batted and denied by another
class, the single gold standard
advocates to a man supporting
the negative view. The late
bond transaction proves the po-
sition of the former class and
gives the lie to the latter. Bear
in mind that the bonds about to
be issued are. made payable in
"coin," either gold or silver, at
option: of the government, in
whichever kind of coin will be
most convenient to pay or when
the time OF payment arrives;
that silver, il at this time worth
only half OF it's coinage value at
the lawful ratio of 16 to 1, and
yet the bonds that may be. pay
ableain this debased metal sell at
d premium of l6h per cent, that
il, 800 in bonds are worth
$116.50. What makes this? Sill
yer: has not appreciated. 1t is
simply this: that the: resources.
and taxable power Of the nation
have been 1nortgaged to pay.
these bonds, and the money
owners Of the world have faith
III the America speop to do it,
They know also tina I the money
q y United st ates ernment'