The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1896-08-15
TWO Pollcies-Bonds or Silver,

such an issue and exchanged their gold
for legal tenders. But the public has
no assurance, further than the inter
ests of the gold spectators, that as
soon as British gold movement can
be made profitable there will be other
raids on the treasury for gold and
further issue of bonds. 1t makes nc
difference who is president, this will
be the resort in carrying out the ex-
isting policy for the redemption on de-
mand Of treasury obligations in gold.
The "endless chain"- continues in OPP
Grafton. 1t is not question of reye-
nue., but of gold supply. The govern
meDt from the commencement Of the
god raids and bonds issue in 1894
mas had ample currency to meet all
demands on it, but not the gold to
meet the redemption Of demand notes.
President Cleveland pointed out a
remedy for this condition by the grad
ual withdrawal of the greenbacks and
treasury notes, but the idea of convert
ing non Understanding debt was
Objectionable to all parties. 1t had
scant support and was voted down in
congress by an er-whelming major
ity. This left bond issues the only
resource to obtain gold. s'The POST
sustained the administration In these
bond issues for the reason that there
was no alternative. We have always
thought that If congress had received
with favor the currency plan presented
by Secretary Carlisle, looking to a
state banking system securely guarded
to protect the note holder, with the
withdrawal Of all government notes
less than $40, legitimate way would
be opened for the increased circulation
of silver, the demand of the south for
greater banking facilities would have
been met and the silver crusade meas
urably abated. But the currency pan
met with as little favor as the more
radical proposition to retire govern.
ment papers and thus break the send
less chain The republicans would
have none of it. The sbattle-scarred
and "wild cat currency
claptrap was more effective than solid
argument and the needs of the treas
ury.
This recital brings us to the point
that in opposition to the free coinage OF
silver the alternative proposition is the
continuance of bond issues to buy gold
to redeem the demand notes. This is
precisely what is before the people
McKinley's election will not change
the situation an iota. He is virtually
pledged by existing conditions and the
gigantic banking, money and corpora
tion interests, whose candidate he is,
to continue the policy of the Cleveland
administration. How can he do 9TH
erwise? He must issue bonds to get
gold, OF allow the reserve to be de-
pleted, and thus be compelled to fall
back on ''coin" redemption, meaning
by that silver at the option of the
government.
The London "Statist," the leading
financial authority of the British me-
in discussing this phase of
the financial situation says:
The Republican national convention
has imposed upon Mr.. McKinley-sup-
posing him to be elected-the task of
the policy which has so
glaringly failed in the hands of Presi-
dent Cleveland. is it likely that Mr.
will be more successful?
President Cleveland borrowed again
and again, yet order was not restored
in the currency and gold shipments
went on. Therefore European invest
ors will conclude that repetition of
the Cleveland policy by Mckinley will
not be more successful.
We have often expressed the opinion
in this journal that it matters very
little whether the United States de-
cides for the gold standard or the sill
yer standard, provided it clearly makes
up its mind in favor of the one or the
other, and insists upon the decision
being carried out. There is this diff
ference, of course, that if the vote
were for the gold standard confidence
would be revived, and gradually Or
der would be restored in the currency;
whereas, if the vote were for silver,
there would first be a panic, while af-
ter that, trade would adapt itself to
the new conditions and the country
would begin to prosper once more.
A panic, of course, is bad under all
circumstances, but panic followed by
revived trade, restored confidence and
renewed prosperity would be infinitely
better than the uncertainty, anxiety
and apprehension of the past three or
four years continuing for ever SO many
years in the future, nobody knows
when to end. That is fatal to all real
business and all new enterprises.
But the "Statist' does not know
that a decision for the gold standard
is practically impossible. The United
States senate certainly for the first
two years of the next administration,
and very possibly for the next four
years, will remain just as it has stood
for the last two years-flrmly for free
coinage and radically against the with
drawal of the greenbacks. That is
the only way to prevent bond issues
as consequence of the raids on Sae
treasury for gold.
We do not believe the people will lis
ten with patience to further bond is
sues to redeem the treasury notes pay
able by their terms in s'coin" and
many millions of them payable speclf-
ically in silver. The bonds already
issued in an unavailing effort to DO
this will amount to their maturity to
charge on the taxpayers Of the Unit
ed States OF over $500, OoO, 600, and this
has to be met by the plain people Of
the land in taxes on their food, shell
ter and clothing. The wealth OF the
country claims exemption from paying
a penny Of this enormous charge, by
the supreme folly of the income tax
decision, fastening taxation on con-
sumption and relieving the surplus