The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-10-11

sieasury Oh soiu IL was pointed out to them
by the advocates of free silver that the
fault did not lie in greenbacks and treas
ury notes, but In the administrative
POI S which surrendered to the note-hoider
the right 70 Demand gold when the govern
ment ought to exercise the right to pay in
either gold or silver. | say 1t was not the
greenpack and treasury notes 1T was the ad-
mlnistrative policy that was to blame. And
yet after they repealed the Sherman law and
brought no relief, the same ones who advo-
Gated that insisted upon retiring the green
backs ana treasury notes with an issue OF
gold bonds. And then they issued bond after
bond. They allowed men to come down and
draw gold then demand the bonds, and then
draw out gold to buy the bonds with. Do
you know what went en-? When they issued
the irst fifty millions of bonds, let me show
you what might have been dbne. man might
and said to him, Have you bonds to sell?'
Yes" Here are thousand dollars In
greenbacks and treasury notes; want a
thousand dollars in bonds" The secretary
would say, We cannot sell you bonds for
greenbacks and treasury notes.. we only sen
these bonds for g9ld 4 you want nj, bonds
bring gold here" He would say, aAl H. ~
II you won't accept grseHbacks and treasury
notes for bonds, | will just present tnoss
greenbacks and treasury notes and demand
gold on them." The secretary says, That IS
thousand dollars in gold And then he says.
tha you bers is the
gold to buy your bonds with. CApplause)
BOnd Issues criticized.
Do you think that is possible? Yes, it is
would be done? That was done Not in the
exact form, but it was done In TACT, pc
cause when the first fifty millions OF bonds
were issued they drew out eighteen millions
Of gold to pay for those bonds. And when
called the attention Of a government ON
cial to it. he shrugged his shoulders and
said he was afraid they would draw out
Of eighteen millions! There was no more
gold in the treasury at the end Of the policy
than there was at the beginning, and yet
eighteen millions Of bonds. And then they
issued fifty millions more, and the next time
they drew out larger proportion OF gold
than they did the first time. And then they
made the Rothschild contract Sold bonds
for $1.Q41a which were worth s1.19. Why?
In order to get gold from abroad Why,
they said, If we sell these bonds at home
we have. to furnish the gold to buy the
bonds with. so we will try selling them
abroad and see If we can get out Of furnish
ing the gold. They made the circle a little
months after the sale of those bonds, which
We're sent abroad at $1,o411, in order to bring
gold to this. country, some OF those same
bonds came back and took gold out Of this
country at about $12O instead of $1o47s
(Applause.)
But there was one provision in that con-
tract that always struck al a very wise
one and 1t was that provision which per
mitted the gold 10 be furnished in INSTALL
ments. say It was wise. because the gold
could not be drawn out till It got In. and an
the longer they were in getting 1t In the
longer they would necessarily be In getting
1T out again. (Applause)
Then they issued one hundred millions
more and they draw out a larger amount OF
gold to pay for these bonds Why. you re-
member that when the bids were opened
there was something like Ave hundred and
member how the fnanciers applauded7 Do
you remember how they talked about the
amount Of gold in the country And after SO
much on .s %ss noe
days after the bids were opened Until the
disappointment that prices did not rise after
country? No, my friends. And shall never
forgive myself for what lost on that bond
issue. Not that lost anything. but ! lost
person who had postage stamp and he bid
and then sold his bid and made large
amount and, as recollect, at that time !
had postage stamp. never forgive myself
for what ! didn't make on that bond issue.
(Applause) Men bid on those bonds who had
no gold at all, but they knew that goio was
selling in the market at premium OF anout
hve-eights Of one per cent, and that as long
as they bid away below the market price OF
the bonds they could And the gold to get tne
bonds with, or they could sell their bid II II
was accepted and large part OF that BIO
represented people who didn't have any gold,
and some Of those who were awarded Donos
went out into the market and began 10 Duy
gold in order to fill their contract gu VIII
Remember that one broker firm In New york
sent down in one day ana presented elgns
hundred thousand dollars In greenbacKs ana
treasury notes and drew out gold to be used
In buyinp those very bonds which were issued
to get gold into the treasury.
Trick of Broker.
One of the New York papers contained an
account of this transaction which think
would be an excellent thing for person
to recite, II he is given to humorous recita-
tons 1t was about like this; ms Dro IKE
presented his greenbaoks and treasury notes
and had the gold wheeled out TO MIN. linen
he started to divide the gold among MS Gus
toners 50 they could take it back to the
window and pay for their bonds. The gov
eminent agent noticed what ne ives DONG
and came out and told him he could not 90 a,
age wn Once 10 out t Of the subtreasury.'' why,
hs = can take this sSd s'f ns .a sns
you can do that; but you can't divide the
gold up here in this Office, Why" he says
what difference does it make? Simply to
says, II can't help it, you have got to do it;
you can't separate it here; you can't hand
1t back here" That made the broker mad
and he said, You stand IN Win TIN ena a or sd
YOU want to make me hire him" (Applause.)
Can you imagine anything more ABSURD IMAM
this government issuing bonds to b. buy a gold
and then furnishing the gold to the people
who want to buy the bonds?
And vet. my friends, there Is no way to
stop that process under the present financial
policy no way to stop that endless chain
under the present administration Of the treas
ury department The policy in force now
is the policy that has been In force through
succeeding administrations Of the treasury
department. When I think how they can
90 down, draw out gold, demand bonds, draw
out gold to buy the bonds with, and then
A. O
asnn m a@ reminded 81 the deception that
a mother practiced on her boy. He was TAX
ing some medicine, and a stranger said to
mo mo sire Ro soS Wen ell said the stranger. you
take it nicely" i.Well's he said mamma
gives Ave cents every time re- l take .; =
aq pi It IN tbe DO and what DO You
do with the money In the bank?" "oh,
mamma uses that to buy more medicine
with" Iaughterl You can mas excuse soo eou rne
to notice the receptions. butS my friends, how
can you excuse treasury officials who. apply
the same practice to~ouf treasury Depart
ment?
We pointed out that the retirement OF the
greenbacks and treasury notes would not
bring relief. We pointed out that so long as
the treasury department insists upon furnish
ing gold to any person who wants the gold
that to destroy the greenbacks and treasury
notes would simply lead to another enaiess
silver dollars and silver certificates in gold
They did not discuss that until recently, but
recently the secretary Of the treasury has
written letter in which he says that when
ever II becomes necessary ito maintain the
parity that he will feelIit his duty to redeem
silver dollars in gold The very moment
that Is done my friends, you start another
endless chain which you cannot stop until you
have retired all the silver dollars and all the
silver certificates and left nothing but gold
as the legal tender money OF this country
(Applause.)
Curse for Mckinley.
And the gold standard contemplates nothing