New-York tribune., 1895-09-12
COIN AND BONDS.

Once more the shipments Of gold create douDts
obout the future Once more the Treasury and
The business world are dependent upon the gra-
cious favor of syndicate Of bankers, who have
technically COMPLETED their contract with the
Government. and could not be held in the least
dcrelict under that contract If they should suffer
the reserve TO be again so far depleted that they
would be called upon to take bonds OF the United
States in exchange for gold. There never mas
been more humiliating and disgraceful situa-
ton for the Treasury, and 1t Is one which the
people fully understand and Indignantly con-
denim.
This condemnation Is absolutely just, even II
II be granted that the President had no Det'er
course open to him in January last than the sur
render of the Treasury TO the care Of receivers.
The situation was one Of his own making he
had urged the passage Of protection destroying
tariff by which, In the very nature OF things,
foreign imports would be encouraged and the
balances due abroad increased. BY his own re-
fusal to veto the tariff bill. though he denounced
It as a measure Of "per6dy and dishonor, he
fastened upon the country law which could
not yield enough revenue. BY his advocacy OF
the State bank scheme he had made 1t impos-
sble TO secure the cooperation OF Republicans
In Congress as TO financial legislation by MS
message favoring gold bonds he had SO angered
the majority Of his own party that no decent
legislation could be obtained through Democratic
action. Then, having been forced by himself
into a position where, as he claimed, only one
course was possible he bargained with syndi-
cate on terms dsmaIly unjust to the Govern
ment.
The difficulty has not been remeded. All the
sale of bonds has accomplished is merely post
ponement of the emergency. Every month some
balance due to Europe on merchandise account,
by reason Of expanding imports, is swelled by
the return Of bonds from abroad because they
were sold at much below their market value. so
that their return to this countyaptelds to holders
a handsome profit. 1t appears by no means I'M
probable that the balances due abroad may con-
tinue large in months which usually bring 10
this country heavy shipments OF gold from Ell
rope II so. and If the present deficiency OF reve-
nue. continues the Treasury will have to consider
once more the need Of borrowing money, and
until October it is under obligation TO offer the
bonds first 10 the syndicate, under its bargain
Of last February.
II is only right in these circumstances 10 warn
the President and the Secretary Of the Treasury
that the people know. beyond possibility OF
doubt, that United States bonds can be placed
at this time on terms far better than were OBJ
tanned last February. II the Administration
should offer the bonds in open market TO the
people, either rejecting any offers by the syn
dicate or deferring a sale until the option 10 the
syndicate has expired, 1t might reasonably ex-
pcct to get for the bonds the much higher price
which the syndicate itself will expect TO get.
For the possibility Of lts success In negotiation
has no other basis than the certainty that the
people will pay for the bonds more than syn
dicate Of bankers will pay. II the country Is to
borrow in order 10 meet the cost OF that very
costly luxury. a Democratic Administration, II
would at least be decent to let the people them
selves have some chance at the profits 10 be
realized by taking the bonds of their Govern
ment