The times. [volume] (Richmond, Va.) 1890-1903, 1895-01-02
VHI Copgr Mus d The egsl Tenders. OF
Shall The, Funded by SIR. Cleveland?

Editor Time In your editorial Of the
LIST OF January fou kindly attribute TO me
the error Of ~ posing that The Govern
meut was selling bonds for legal tenders.
II YOU were arguing a ease before the
Supreme Court. and should 90 into minute
details concerning each step. 10y when
you deduced a legal conclusion, the
Court would probably say 20 you:
please take it for granted that the
Court knows something" II have fallen
into an error. it is only that OF presuin-
ing that my readers were familiar with
Gle process by which legal tenders are
now being locked up, ana will continue to
ce so long az they shall be rendered for
redemptlOn. As well might you charge
me with falling into an error when ask
i'm the caption of this article. VIII Con
gress fund the legal tenders, or snail
they be funded by Mr.. CleVeland?' ! am
perfectly aware that there IS not only 10
law authorizing the President TO fund
them but there is Il law requiring that
greenbacks. when received into the Trea-
sury. shall not be cancelled, but shall be
re-issued. Nevertheless. ] say that II
Congress refuses 10 fund the legal ten
ders they WILL FOR all practical purposes,
tie funded. or at least taken out of circu-
lation and bonds put In their place, by
the action of Mr.. cleveland. | DO not
mean that all cf them viii be, but enough
will be retired ia disembarrass aud re-
lieve the Treasury.
on the 18th OF November. 1891. the Gov
ernment sold s50C0o.W0 bonds for about
SIS 900 900. all Of which was paid in gold.
The purchasers, Immediately after paying
for the bonds. commenced presenting le-
gal tenders for redemption, and pursued
that policy until, on the 18th of becem-
her. 1897, they had drawn out of the
Treasury S2JO00.N00 of the gold. and sub
stituted therefor an equal amount OF
legal tenders. Those legal tenders re-
manned in the Treasury. and on The Hth
of December the Treasury held $c9V@,vJ5
I'm gold and Sol 10000 in legal tenders.
The balance was silver <lf Mr.. Cleveland
has 10 issue another &000o,0o0 1t VIII be
because the gold has been drawn out SAY
$50. 900 more) and legal tenders VIII
have been substituted. The Treasury,
then, will. by means Of the last issue or
bonds. have locked up between fifty
and sixty millions OF legal tenders. You
may say, of course, that these legal ten
ders have not been funded. Speaking ac-
curately, they have not, but they have
been taken out of circulation. and as the
expenses Of the Government are assumed
to be met by current receipts, there can
be no occasion for again putting them
afioat.
IT, then. in the next sixty days or three
months IL should become necessary 10
issue ED.v0.UO0 more OF bonds 10 rep.e1-
ish the dold reserve the result VIII be,
either that the gold received viii remain
in the Treasury. or, If the legal tenders
continue to come in for redemption. nIty
or sixty millions more Of them viii be
retired from circulation and locked up
where they cannot be used. The repetition
OF this process would eventually retire
all legal tenders. But # will not be neces-
saryn 10 go so far with their redemption.
They are presented for redemption now
because of the dlstrust prevailing at home
and abroad as 10 the financial ability OF
the Government.
Let MS see how the sale Of $4,000 .ot0
additional bonds would affect the situa-
| ton. As have shown, before II becomes
necessary 10 sell more bends Ne will