Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-01-07
4 500. 10000 Loan.

A 100000. 900 LOnn.
Secretary Carlisle has cut the financial
Gordian knot, temporarily at least. and
come TO the relief OF the depleted gold
reserve OF the Treasury by inviting Il
popular subscription for sloV.O15oov OF
bonds These bonds are to be sold Tor
gold. bear per cent. interest payable
In coin. and will have thirty years TO
run. In the circular calling FOR the SUBJ
scrlption Secretary Carlisle also says;
Notice is further hereby given that II
the issue and sale OF an additional or M
ferent form OF bond for the maintenance
OF the gold reserve shall bc authorized
by law before the 5th day or FeDIuaiy
1895 sealed proposals for the purchase OF
such bonds will also be received at the
same time and place and up to the same
date. and upon the same terms and con-
ditions herein set forth. and such bids
viii be considered as we'll as the BIDS
for the per cent bonds herein men-
toned"
In the absence OF any action on the par.
of Congress 10 ease the situation ana re-
hablitate the gold reserve, or rather In
view OF the almost certain deadlock be-
s,creta~y's course affords the only ave-
nue. out OF the difficulties that environ
he Treasury. And what is equally TO
The point the conditions now existing
Ia the country encourage the hope that
Mr.. Carlisles remedy will prove much
more efficacious than did this expedient
the last time il was found necessary 10
resort to II.
In offering the loan for public SUBJ
script.on. rather than to a syndicate,
Mr.. Carlisle doubtless offended some big
Wall-street men, and possibly has not
put himself in position TO realize quite
as quickly as he could have realized from
4 syndicate: hut We must suppose that
all these things were well considered be-
fore he acted-acied Tor the best. More
over. the net proceeds OF sale such az
this will bc a good deal larger than 1t
would be II made TO a syndicate. In
word, the government comes 10 the people
aud 10 the banks and asks for the gold
IT needs. rather than pay the eNorbitant
charges demanded by the syndicate,. The
prompter and the heartier the responses
20 the governments call are the better
will he the effects of the loan on business
conditions.
The question how far or how long
the new issue 81 bonds Will prove
remedial. is one of confidence The issue
of February last. made FOR the purpose
of solving a problem similar 10 that which
I.ou confronts u. failed OF giving eN-
tended relief. ana maintaining the gold
reserve. for the reason largely that IN
fores.sn conditions arose. The opinion Of
the United States Supreme Court declaring
The income-tax Law unconstitutional
greatly reduced the anticipated revenues
OF the government. Our revenues fell
he'ow our expenses. thus compelling The
reissue OF the grcenbacks and Treasury
notes in the Treasury. a. provided in
case OF such an emergency. and the re-
suit was that these notes became raid
upon the gold reserve. The deficit in the
revenues caused a lack Of confidence. ahd
the reissue OF sreenbacks and Treasury
notes VAS bought up and the gold IN
which they were redeemable demanded.
In other words. We had another i,lustra-
ton OF the endless chain OF steenback
redemption.
According to the public-dcbt statement
for the month ending December g. 1875,
the net gold reserve in the Treasury
was Sc, 10, s6S. as against about sA.V09too
In February. 1895. In addition The Urea
sury holds over 500 10000 Of greenbacks
and Treasury notes. which are safe
guarded against being charge on the
gold reserve so long as our revenues eN-
ac~l our expenses. That this latter happy
condition obtains We have the assurance
or Mr. Cleveland and the Treasury on
eialx. II will. therefore lac seen that
practically none of the more potent in
ruences that prevailed in February LIST
arc likely 10 intervene to prevent The
present ISSUE OF bonds from accompliah
ing their purpose Business interests
generally are reyiving. There is less
boarding disposition apparent than for
two or three years. and Il Is believed
that there Is little inclination among TIE
holders OF greenbacks and Treasury notes
to demand the coin for them Any dc.
mand for grecnbscks Treasury notes
HRith which TO draw gold from the Trea-
vly for the purchase of bonds viii
operate to the advantage OF the financial
situation Ii will be simply taking the
sold out OF the Treasury 10 put !; lick
again the transaction ending by the sov-
crnmenfs keeping he ereenbsck ~ TIsa-
scry note. and issuing Its bond In lieu
thereof. la short, The process ~ one Of
purchasing bonds with sreenbacks OF
Treasury notes in roundabou. Way.
------------
The Chamber and the Combinations. |
There are. OF course. two sides 10 ne |
charfer-amendmeni question. one Is that |