The herald., 1895-09-14
PEFfER AND BOND ISSUES


Senator Peffsr said yesterday. accord
Ing to . telegraphic dispatch. that If an
other issue of bonds should be attempted
without authority of congress that he
would introduce in the senate resolu-
tion Tor the repudiation of the said bonds.
The necessity for bond issue is at all
times to be deplored. The business Of o
government rs supposed to be so ar
rsnged that It's receipts of moneys shall
be sufficient to meet its expenditures.
just. however. as merchant who is per-
fectly solvent may be under the necessity
ct times Of giving mis- nots at a bank tcE
ready and neeued funds, just so has the
governm snt of the United States within
the past two years been obliged to twice
practically do the same thing-it has is
sued its Dotes in the form of bonds and
received for them the coin with which it
has continued its business and with which
it has met It's legal obligations.
When the solvent merchant has to bor-
row funds from bank and gives his
promise TO repay the loan on or before
. certain date, together with the
interest. 1t is safe to say that extraordin
ness to make such a course necessary.
And when the United States government
finds itself compelled to resort to bond
issue it is equally safe to say that extra
ordinary conditions have been brought
about to make such action obligatory.
When Grover Cleveland In 1889, after
serving the people as their president for
four years, gave way to his Republican
successor there was in the treasury a
surplus Of over hundred million of dol
lars. Four yeare later, or in 1893, Benja-
min Harrison, by the grace of God, laid
down the cares of his high office in favor
of his successor, Grover Cleveland, who
for tne second time had been elected by
the people. What was the condition of
tho treasury then? 1t was empty. The
hundred million of dollars had vanished
and . deficit was apparent. Financial
difficulties during many months had pre-
sented themselves to Harrison and his
secretary Of the treasury, Charles Foster
Of Ohio. Tho Republican president had
been tempted to seek refuge in bond is
sue as way out Of his dilem ma; the very
plates for. printing the bonds had been
prepared. but Harrison stayed his hand
and decided to throw the responsibility
Of borrowing funds upon the incoming
Democratic president. And this was
done.
: Cleveland came into Office in 1898, not
under these difficulties only, but under
others still greater. Under the Harrison
regime the world FIST heard of billion
dollar congresses. These congresses left
As legacy to the succeeding adminstra-
tions largely increased and arbitrary mon
etary payments. The details are we'll
known and need not here be gone into.
An era of business depression which for
two years had been coming upon the
country was at the time of Cleveland's
second Inauguration at it's height, or
rather, at its depth. 1t was months be.
fore the next congress could be convened.
and something must he done. AS the
merchant must pay his debts when they
become due, so must government dis
charge its obligations as they mature.
President Cleveland ordered bond issue
and later a second one. Both were dobe
under and by virtue of a law which, un-
satisfactory though it may be, was suffi-
cient to warrant the presidents action.
Because of these bond issues the govern
ment was saved from being defaulter
and was spared the ignominy of expert
encing an impaired credit.
And now Senator PETER, if he is quoted
accurately, says that in the event of a
third issue of bonds he will offer reso-
LUTON for its repudiation. Such a state
ment from the long whiskered senator will
surprise no one. The man who will ad-
vocate a system by which the farmer NAV
come to the market with a wagon load of
produce and, unless he deposits it in
bank or storehouse, take home for 1t
wagon load OF money, is liable to say al
most anything. The Herald is of the
belief that Senator Peffer when he ut
tered the words attributed 10 him was
experiencing thrill that comes from
Kansas zephyr toying with his facial mir
suite adornment and could not help talk
ing.
Democrats and Republicans and the
less crazy portion of the Populists, we
take it, sincerely hope that another bond
issue may not be necessary. The Her
aid. individually, thinks that the emer-
gency will not arise, but if it should be
necessary, If the reserve fund should fall
TO certain point and if prudence and
safety does suggest such action. what a
spectacle il would be to see PETER, whisk-
ers and all, slowly rise to his feet in the
senate chamber and in ministerial. al
most sepulchral tones, move the adoption
OF q resolution which, if carried, would
brand the government as thief and st,g
matizs the American people as peorIe
in whom dwelt not honor,
As between the issue and the spectacle
We prefer the former, bad though that be.