The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-02-12
GOLD RESERVE.

The popular loan to the government
is a success. The amount called for
by the government, after all worthless
bids for its bonds are set aside, has
been offered five and half times over,
that is the genuine bids aggregate up
wards Of $568, 900, 900. While it is quite
likely that considerable gold will be
withdrawn from the treasury's pres
ent stock with which to pay for the
bonds, yet when the bond sale is com
pleted, beyond doubt the government
will have number of millions in gold
above the $1Oo,000,0O0 required by law
to be held in the treasury for the re-
demption of United States notes; there
can be no question about that. The
question is, when the S100,O00,00O gold
reserve is in the treasury once more
how shall it be kept there? There will
be outstanding gold certificates
that must be redeemed on demand.
There will be several hundred millions
of United States notes and treasury
notes outstanding, which, If the past
policy of the government is to be fol-
lowed in redeeming them in gold, may
be presented and the treasury again
be depleted Of its reserve fund; to be
again replenished by another bond sale,
to be followed by another depletion,
and so on ad inf1nitum
Would it not be well when the re-
for those now in control of the gov
ernments finances to sit down and
do little serious thinking, and see If
this enormous increase of the govern
ment's bonded Indebtedness in times
Of profound peace cannot be stopped
When a thing is costing us as much to
maintain as this gold reserve is, would
it not be as well to count our gains
and see if the luxury is worth the
outlay? And if it is decided that the
gold reserve is an absolute necessity,
would it not be well to ascertain if
there is not some other method of pre-
serving 1t than by borrowing gold with
Understanding bonds? We are laying
a heavy burden upon our future by our
present method, and certainly it is sat
isfactory to no one except those deal
ers in bonds who are prohting by what
we must regard as the governments
folly. Private institutions are not SO
badly managed as is the government.
Doubtless 1t Will be remembered that
for a time during the financial crisis
Of 1893 every bank in New York City
suspended payment Of all kinds of
money. Depositors were told that
their checks would not be paid if pre-
sented; but the banks agreed to GER
tify on the checks that they would be
paid when convenient" This auda-
cfous piece of impudence was very gen
orally applauded as daring stroke of
fnanciering wisdom, as it preserved
the credit Of the banks. That sounds
preposterous of course, but to some
extent it doubtless is a truth since it
kept at bay panic stricken crowd who
otherwise would have made run upon
the banks, until really they would have
been compelled from necessity to have
suspended payment.
Well, if that act could be applauded
as wise, and the banks of New York
be praised for thus protecting them
selves from panic stricken depositors,
why cannot the government be COM
mended for protecting it's reserve,
which is held to be identical with it's
credit, by much less questionable
method-nay, by method strictly le-
by redeeming United
States treasury notes in "coin," which
means surely either gold or silver, and
not gold alone? If the treasury off
Gals were more careful of the govern
ment's interests, and less anxious about
the interests of the gold spectators
this is what they would do. 1t would
not be case either Of wrestling the
law to their authority. 1t would
not be a case of doing a little wrong
in order to go a great right. 1t would
not be establishing precedent by
which many an error following this ex-
ample would rush into the state. 1t