The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-01-15
THE ENDLESS CHAIN
What the People Got For
the Bonds.
How the Gold Drain Could Have
Been Stopped at Once.
fPhiladeIDhia American.)

philadelphia American.)
From President Cleveland and Mr.. Car
Isle down. no gold -monometllist lets pass
an opportunity to give wide circulation to
the delusive statement that, as existing
laws require that the greenbacks, when
redeemed, shall at once be re-issued and
kept in circulation, the treasury is placed
IN the anomalous position of being forced
to redeem greenbacks without redemp-
ton, and pay it's debts without acfquit-
tance. In word, that the government
is in the same position after redeeming
the greenbacks in gold, as before; that
the debt of the government is not reduced
by the payment of its creditors: that the
issue of $162 ,315 400 bonds for gold since
February, 1894. has left the treasury IN
the same position as before: and that this
great increase of our bonded indebtedness
has led to no reduction whatsoever of our
f1oating debt, as represented by green
backs.
To the wide circulation, constant repe-
tition, and general endorsement of mis-
leading and deceptive statements of this
kind by the -monometallic organs
and contradictions in general, is due the
erroneous, but prevalent. impression that
the government has received no perma-
nent return for the bonds sold for gold in
the vain effort to maintain the gold re-
serve
Since assertions are palpably false, but
sold S162,315, 400 bonds on account of
which over $1S2 200, 900 in gold has been
paid into the treasury but the gold re-
serve which had fallen to 5000 900 Just
before the first bond issue, stands today
at less than that sum, and Mr. Cleveland
is again about to repeat the operation of
selling bonds for gold, that has proven
SO costly and ineffective in the past.
One hundred and eighty-two millions
OF gold having been paid into the treas
ury in exchange for bonds during the past
two years without resulting in any in
crease in the gold reserve, and gold so
received having been paid out IN the re-
demption of greenbacks and tresury notes
OF 1890, and none of the greenbacks, and
but FEW OF the treasury notes so redeem
ed having been retired, it is actually stat
ed, and the statement receives ready
credence in certain receptive quarters
that the government has actually re-
ceived nothing of permanent value. and
has now nothing to show for an addition
to our bonded debt of over $162 ,OOO, 900.
and to annual interest charges of nearly
$500 000
Such assertions are palpably false, but
far from making any effort to correct this
and similar erroneous impressions, the
gold organs endeavor to spread them
among their readers. The gold that has
been borrowed has been dissipated, but
how? Greenbacks and treasury notes.
redeemable by law in either gold or silver
at the discretion of the secretary of the
treasury, have been presented for re-
demption, and Mr.. Carlisle as his pred
ecessors. waiving the option conferred on
him by law, and assuming that the treas
ury is obliged to redeem these notes in
the metal preferred by those demanding
payment, obviously the dearer metal. has
redeemed the notes in gold The priv:l-
ege reserved to the secretary of the treas
ury by congress to redeem the nOts in the
cheaper and most convenient metal, Mr..
Carlisle has surrendered, and conferred
on the holders of the notes the right to
demand payment in the dearer Thus
the demand for gold for export has been
thrown ON the treasury, for at the treas
ury the exporters have been given the
privilege of exchanging the United States
notes and treasury notes of 1890 for that
metal which is best suited to their pur-
poses. the government having undertaken
the task OF supplying them, at great cost
to itself, with the metal hey can export at
greaest profit. But, passing over the un-
Warrented Interpretation of federal stat
utes, under which the present administra-
ton, like the past. has held it OBLIGATORY
Oh the secrtary of the treasury to redeem
both greenbacks and treasury notes in
gold, which has resulted in imposing on
our people needless interest bearing
debt OF $162, ,315, 400. now about to be add
+ ed to by $1O0,00O,000 Or more, we return
to the consideration OF what became of
the greenbacks and treasury notes re-
celved from exporters and others in ex-
change for the gold borrowed at such
great cost. These notes, we are told.
have been reiSsued. put again in circula-
tion. and are outstanding claims against
the government, just as they were before
redeemed and that, though the govern
ment has paid large portion of these
notes in gold. the government has not
been acquitted of its Indebtedness to the
noteholders. and in spite of the increase
of $162, ,315, 400 of bonded debt, the un-
funded, floating debt of the government
has not been reduced. and that the gov
ernment has actullay received nothing in
return for this enormous increase of the
luHueu ueUl. OUCH d conclusion Is alb
surd.
Twenty-three months ago the gold re-
serve stood at $65, 100000, on December
31st last at but s63,S7o968. One hundred
and eightytwo millions of gold have been
added in the interim. 1t has gone, been
paid out in redemption of grenbacks and
treasury notes. 1t has been replaced in
the treasury in the shape of paper of the
government. The issues of bonds have
failed Of their ostensible purpose, that is
to keep gold N the treasury, as could
| have been readily foreseen, and as the
| new issue. must now fail. Artificial
means cannot keep gold in the treasury.
To put it there by borrowing is but to in
crease the demands for redemption and
lead to greater Withdrawals than would
otherwise take place. This we have
pointed out before. To borrow gold
abroad and to bring it to America is to