The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-01-20

The passage of the increased revenue b'l
now in the Senate will carry the govern
ment out of the present deficiency rlt.
Then if congress will pass Senator Sher-
mans measure, compelling the treasury to
retain all notes redeemed in gold until
they can be put back into circulation
through an exchange for gold, 1t Will put
the government finances on a sound basis;
assuming, of course, that some addition
will be made to the bank circulation to
compensate for the Withholding of the le
gal tenders from use. In such an event,
the gold reserve can drop down below $0O,-
100000 periodically without any shaking or
confidence. consider Senator Sherman's
proposition one of the best that has yet
been presented in connection with reform
ing the currency, and 1t ought to speedily
become law; but it is necessary, of course,
that the increased revenue measure should
also pass, so that the advantages which
both measures give can be derived at the
same time by the government. If congress
will pass these two acts, it will beyond
doubt do away with the necessity in the
future for periodical sales OF bonds TO pro-
vide for the gold reserve.
If our dispute with England is settled
without bloodshed or dishonor on either
SIDE which appears to me inevitable,
then the fact that we have had such a
scrap and peacefully gotten over il will
result in more cordial and enduring
friendly relations in the future than ex-
listed before the rupture occurred; When
it is absolutely known to be settled, the
English people will tumble over each
other to buy our government bonds.
The response to public opinion by Sec
rotary Carlisle in making the bond issue
competitive with the public, is certainly
creditable to him, and the fact that he
has changed the mode of payment from
the one originally advertised, so that the
facilities are increased to admit of sub
scribing for the bonds, is an evidence
that the secretary is disposed to do all in
his power to make the public subscrip-
ton a great success. To have continued
with the original mode of payment could
not have failed to shut out an immense
number of subscriptions which will now
be made by people $ on M oae e az means rs
the banks within two weeks and an in
crease in their surplus of $l2, 5OOOO0 with
in that time, which brings 1t up to about
$500 coo, is a change made to provide for
the bond issue. The stringency already
produced and the consequent liquidation
is in a large measure discounting the eff
feet of the operation on Feb 5, when the
awards will be announced and the first
installment on the bonds paid. l am
quite of the opinion that the aggregate
of bids will be largely in excess of the
500. 900, and will average in price over
10 for the bonds.
a cheap security even at liz, which will
make the bonds yield over 3A per cent.
interest, when compared with ~ per cent.
English consols now selling at 1071s-the
highest price on record--a United States
per cent. thirty-year bond to be equiva-
lent TO that price for consols should be
about 1877. The present price at the New
York Stock Exchange of United States
4-e0 bonds is 1l6 and only retail quantities
to be had even at that; and that this
price is sustained in the face of the $lC0.-
100000 more now offered by the government
for subscription, is pretty good evidence
of the estimated market value of the Sc
curity There would be no difficulty in
eliciting subscriptions for this loan a num-
Der of times over from Europe were il not
for the foreign press speaking so dis
paringly of our currency, which is made
at the present time a discouraging inhtl-
ence against American securities. The at
titude taken is scarcely fair considering
the facts in the case; embodied in the
above debt table, together with the fol-
lowing statement, the amount of United
States legal tender obligations now out
are as follows:
GreenbackS .....--.... ........... .S346 6S1. 016
In. treasury ........................ Sl,033, 400
Now outstanding ...............S 265,6l7. eo7
Sherman notes .$l57 81, go
In treasury -.....-...-........-.... 1921, 235
Greenbacks and Sherman notes tosether