The Providence news. (Providence [R.I.]) 1891-1906, 1896-09-19
CLEVELAND'S BOND ISSUES,
Made Under False Pre.enscs--OAe Of Bry
ans Statements Correct.

Made Under False Pre.enscs--OAe of Bry.
ans Statements Correct.
TIE criticisms which Mr.. Bryan made
I'm his speech at Milwaukee on Saturday
of the government bond issues Of the
last three years, although they were ex-
aggerated and unfair, were, neverthe-
less, TO a certain extent justified by the
false representations made by President
Cleveland. Mr.. Cleveland has insisted
over and over again that these bond
issues were required for nothing but the
replenishment Of the treasury gold re-
serve. and that. except for redeeming in
gold the legal tender notes, no bonds
need have been sold. The fact is that
the bonds were sold largely 70 meet a
deficiency in the revenues, and but for
that deficiency would have been neces-
sary only to small amount
The issues began in February, 1894,
and the last one was made last Febru-
ary and the months following. Adding
to the cash balance in the treasury on
Feb. 1, 1894, the proceeds Of the bonds
subsequently sold and deducting from
the total the cash balance in the treas
ury last Saturday gives this result:
Balance In the treasury Feb. 4, 1894. ss4 0s2 600
Proceeds OF bond sales. 293 a54. 2s3
Total ........................ $5i. ,oco'oo
Deduct balance Sept. D, 1896. o...-.... A2,044, ,2o2
Difference TO be accounted for. 80. slS6. 492, las
How this amount of s135, ,49e, 1873 has
disappeared will partly appear from
these figures, the difference in result
being due to receipts from extraordinary
sources:
Deficiency in the revenues June 90. ~
1924 ACKNOWLEDGEMENTS. $oe, nS, E1O
Deficiency In the revenues June 20,
1895 .....................,... l2.so5, 22s
Deficiency I'm tho revenues June 90.
1880 ........................... go aS, 40
Deficiency in the revenues Aug. 8. l.
1910 "a lzS oo5
Total. three years and two months sl6l, ,e85. .oS7
Another way of presenting the facts
is to add to the amount OF legal tenders
and gold in the treasury when the bond
sales began the amount Of gold procured
by the bond sales and deduct from the
total the legal tenders and gold now in
the treasury:
Legal tenders and gold, Feb. l. 1894. $40, 1892 s7l
Geld received for bonds sold. ....... SS, 4b4 26d
Total 1888. 7s7. i57
Gold and legal tenders on hand
Sept b, Iss0. ..........-.............. Zs,oo9Ac
To DO accounted for r....,...........sl4s.927 .927 94e
1t is evident that, If the legal tenders
redeemed in gold since Feb /, 1894,
had not been paid out 10 meet current
expenses, they would still be III the
treasury; so that the total amount of
gold and legal tenders at this moment
would equal the amount on hand Feb.
], 1894, with the proceeds Of the gold
received for bonds added. Instead Of
that there is deficiency Of $i4s, 927.-
149. -
When, therefore, Mr. Bryan, follow
ing Ny. Cleveland asserts that the bod
issues have been made exclusively in
order to maintain gold payments, here
pears lie which Mr.. Cleveland first
put in circulation, but which is lie
mono the less.
As for the onerous terms upon which
the $62, 900, 900 of bonds were sold a
year ago TO tho Morgsi Belmont syndi.
cate, it was "a blunder and not crime
Mr.. Cleveland, in his ignorance of
financial laws, thought that the bonds
must be sold for gold brought from
Europe, not seeing that it made no
difference whence the gold came.
Whether ii was first drawn cut of the
treasury with legal tenders and then
paid in for the bonds, or whether it was
first paid in and then drawn ont. 1t came
TO the same thing in tho end. AS mat
ter Of fact, tho $50, 600, 600 Of gold for
which Mr. Cleveland paid premium
of IS, 600, 600 lasted only six months,
and then another bond issue was re-
quired. New York Sun.