Herald and news. [volume] (West Randolph, Vt.) 1878-1943, 1896-01-16
The Bond Business.

] Every Republican believes that in.
creased revenues, sufficient, at least, to
equal expenditures, would greatly as
sist the treasury in its dilemma, but
all do not agree that it would abso-
! lutely prevent any lowering of the
gold reserve and consequent issuing
of bonds to sustain it, such as we have
seen-during the past three years.
As long as the greenbacks are in
circulation, there is no assurance that
they will not be used for the purpose
Of drawing out the gold, and unless
the existing laws are amended they
must be kept in circulation.
1t may be asked why the greenbacks
were not thus employed during pre-
vious administrations. The answer
| is, because, owing to the free silver
agitation and the selling Of securities
held by foreigners, gold is more in de-
mand than formerly. The treasury
supply is open to easy raid from
greenbacks and treasury notes and is
constantly being reduced by these
means. Nor revenue is paid in gold
now, while until recently large per
cent Of it came in this kind of coin.
Then spectators have discovered an
easy way to "milk" the treasury, car
rying this paper currency for redemp-
ton and then holding the gold until
the government, in desperation, goes
on its knees before them and pays
them a large profit for selling il back,
when it is just as easily "milked" out
again and the process repeated. Add
to this the heavy deficit in govern
ment revenues and it can be seen how
necessary some action is.
Revenues ought first to be increased.
Then Steps should be taken to prevent
raids on the gold reserve. We believe
the best method Of doing this is by
following the presidents suggestion
as to retiring the greenbacks and |
notes. Let longtime, low-interest |
bond be issued by which gold can be
bought, sufficient in quantity to re-
deem the notes and let them all be
cancelled For every dollar cancelled
a gold dollar would be put in circu-
lation, while as fast as the. notes were
cancelled, bank currency could be is
sued, based on these bonds, under the
same arrangement as at present except
that circulation could be taken out to
the full amount of bonds deposited.
In this way the currency would not
be contracted and values would not be
disturbed. The substitution OF bank
circulation for government notes
would be gradual and carried on with
out friction.
The result would be that we should
have created an Indebtedness OF some
$500, 600, 900, bearing probably 3 per
cent interest. For this sacrifice we
should secure an absolutely sound
financial system. With the present
issue Of 500, 100000 bonds, we shall
have created during the Cleveland adj
a debt of $262, 200, 900
without having done anything to
strike at the root of the trouble but
simply as temporary treatment for a
chronic difficulty.
The bonds now advertised bid fair
o fall into the hands of the Morgan
,old syndicate. 1t is thought that the
administration expected such d result
rom the first and only opened the loan
or public bidding on account Of the
popular clamor. The way in which
he bonds are advertised bears out
his opinion. An opportunity was
ifcred the syndicate to Corner the
old before the announcement was
nade and the opportunity seems to
ave been improved, as but little has
cen thus far offered by others.
Our finances are certainly in bad
ray and need early and careful attcn-
on. There are 50 many doctors,
lough, that hope Of a speedy rccov-
~ of the patient is faint.
Try can OF Hopkins Steamed Hominy
aI &. AcIs AL |