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

s@>A '"~~S
Let us enu!nerate tile prOnli-
nent facts in the recent purchase
of gold 10y the Cleveland admin
istration. President Cleveland
in his message to congress stat
ed that it vas doubtful that
gold could lie borrowed in the
United States or abroad unless
gold payment was promised in
the bonds, and urged an act au-
thorizing such a promise to be
made. With such Il 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 OPP
ton Of the government, lie
would have to give + per cent in
terest. The difference in interest
for 30 years would be $19,OOO,-
900. which the American people
would have to pay in excess Of
what would I've necessary if the
administration could meet the
terms Of owners OF gold. Con-
gress refused to grant the az
thority required, and President
Cleveland proceeded to make a
contract with the Rorhschild syn
dictate for the delivery Of gold to
be paid for in bonds amounting
to $62, 100000, bearing 4 per
cent interest and running 30
years. The syndicate was to
pay 1O4h therefor, or a prem
ium OF TX 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 inwardly 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 OBJ
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 the syndicate. 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
dictate OF bankers, a controlling
part OF which are foreigners,
have robbed the people OF 49,
488, 900 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 in
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 50 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
batte.l 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 is at this time worth
only half of it's coinage value at
the lawful ratio of 16 to /, and
yet the bonds that may be pay.
able in this debased metal sell at
q premium OF 16H per cent, that
is, $10Oe in bonds are worth
$116.5O. What makes this?. Sill
yer has not appreciated. 1t is
simply this: that the resources
and taxable power of the nation.
have been mort gagged to pay.
these honds, and the money
owners Of the world have faith
IN thea nelican people to do it,
they know also that the money.
tie United States government
makes legal tender will be good