Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1897-08-18

nance OF the gold standard. And yet,
from conviction Or out of sheer contra
riness, itopposes vehemently the break
ing of that "endless chain" of green
backs which only few years ago came
so near bringing the country from the
gold to The silver standard and debasing
it's currency.
The Sun, quoting the declaration in
the Indianapolis platform about "tak-
ing the government out of the banking
business" states that
That means, so far as it means anything,
taking away the function of issuing notes from
the government and turning it over to the
banks exclusively and incidentally increasing
the bonded debt so materially that there will
be added from 100000 900 to $l50O0,000 to the
interest charges, solely for the benefit of the
banks.
1t is true that the funding of the
greenbacks would add $40, 000,0 900 or
81 / 100000 year to the interest
charges Or until those bonds were paid
off with surplus revenue. But that
bond sale would be the last. When will
the last sale be if the ''endless chain
is not broken? Is The Sun aware Of the
fact that the interest charges have in
creased over IS, 900, 600 since Mr.. Cleve
land was inaugurated in 1898, and that
those charges We're increased by reason
Of the sale of bonds with which to re-
deem greenbacks?
Those bonds were not sold 'solely for
the benefit Of the banks. They were
sold to save the credit of the United
States and the credit of it's people. If
more bonds were to be sold to cancel
the greenbacks, they would not be sold
to benefit the banks, but to insure the
people against a recurrence of the ca
lamitous days Of 1898, when it was
feared the greenbacks would not be re.
deemed in gold.
1t is evident that The Sun does not
want bonds sold to cancel the green
backs. Is it willing to have bonds sold
from time to time if necessary to get
the gold with which to redeem and re-
redeem greenbacks? Is it willing the in
terest charges should be added to for
that purpose? If not, what plan has it
to insure the recurrent redemption of
the greenbacks?
The act of 1878 makes it the duty of
the secretary of the treasury to pay out
greenbacks which may have been re-
deemed. 1t makes no difference whether
these notes were redeemed in gold OF
were taken by the government for debts
due it-custom house duties or internal
revenue duties. Out of the Treasury
they must go in payment of debts of the
government. They 60 out, and presently
they come back again to be redeemed
once more.
When everything is running smooth
ly and there are no fears of the stabil-
ity of the currency, comparatively few
greenbacks are presented for redemp-
ton in gold, but when there is doubt
as to the continuance of gold redemption
then there is a run on the treasury.
The amount of gold paid out to redeem
greenbacks and Sherman notes between
March, 1893, and November, 1896, was
$42S, $4,000
In order to provide portion of the
gold thus paid out bonds had to be sold
Bonds will have to be sold again if
there is such demand for gold as there
was i'll 1S94-5. II there should be free
silver victories this year and next,
might not that demand be renewed? If
that is possible, precautionary measures
should be taken, so that there may be
no question about the redemption of the
greenbacks. Has The Sun any measure
to recommend?
That paper is not ignorant of the fact
that the bonds which the secretary of
the treasury is authorized to sell are
payable in "coin. When the laws con
tanning that word were enacted, the
silver dollar was worth trifle more
than the gold dollar. Bondholders would
have been gamers if the government
had paid them in silver dollars, which
were coined free prior to 1878, but the
silver dollars in circulation now are
worth intrinsically less than half what
they were 25 years ago. They have full
purchasing power only because the gov
eminent is behind them. If there were
free coinage of silver, the silver dollars
would be worth only Az cents apiece,
and yet the government could use them
in payment Of "coin" bonds.
Therefore it is not strange that those
of whom the government demands gold
in exchange for bonds should balk lit
tie sometimes at that word ''coin.' It
involves the possibility of their being
repaid i'll half value silver If congress
had complied with Cleveland S request
and allowed him to sell gold bonds,
SIG, 900, 900 would have been saved to
the taxpayers OH the first issue of 1895.
Is The Sun in favor of amending the
law now, so that when gold is needed
gold bonds can be sold to obtain it?
Or, If The Sun is not willing to do
this, what does it propose to do in order
that there may be certainty of gold
on hand with which to redeem notes it
insists must be redeemed in gold on
presentation? 1t must have some plan.
1t cannot be satisfied to drift along,
hoping there will be no more panics to
cause run ON the treasury for gold.
What is its plan to insure the redemp-
ton Of the $3.50, 900, 900 Of greenbacks
and Sherman notes it desires to keep
afloat?- Chicago Tribune.