Daily independent. [volume] (Elko, Nev.) 188?-1915, 1897-12-27
BONDS AND BUNCOMEE.

One Of lhe features OF the presi-
dents message most difficult to at
count for ls the elaborate explana-
ton that President Mckinley gives
of the way the endless chain may
operate to deplete the gold reserve
and thus make a bond issue neces
sary. The explanation is Identical
with the explanation that President
Cleveland and Secretary Carlisle gave
to congress on more than one occa-
sion. President Mckinley says that
we have s9O0,OOO,O00 o; currency to
keep at par with gold; that nobody is
obliged to redeem i'll gold but the
government; that the revenues of the
government are not required to be
paid in gold; that the only way the
government can get gold with Ger
tainty is borrowing. He adds:
@The law which requires the gov
eminent, after having redeemed it's
United States Totes, to pay them out
again rs current funds, demands a
constant replenishment of the gold
reserve. This is especially SO in times
of business panic and when the rev.
enues are insu lcient to meet the cX-
penses OF the government.
The serious question Is: Shall we
continue the policy that has been
pursued in the past-.that is, when the
gold reserve reaches the point of dan
ger, issue more bonds and supply the
needed gold--or shall we provide
other means to prevel 1t the recurring
drains upon the gold reserve?
"If no farther legislation is had and
the policy of selling bonds is to be
continued, then congress should give
the secretary'of the treasury author
ity to sell bonds ut long or short
periods, bearing less rate Of interest
than is now authorized by law"
Why should President Mckinley
present these pregnant facts to the
attention of his partisan friends and
supporters, who had formerly so
scornfully tossed them aside as wick
ed inventions of President Cleveland?
Why should he make the republicans
swallow the "endless chain" theory.
and especially at this time? There is
no pressure now tending to diminish
the gold reserve. The insuillciency
- |,
tendency, G3 the experience Of the
past four months shows. While the
revenues have been running behind
at an average rate Of more than &c.
100000, the gold reserve has steadily
and materially increased. July ],
1897, it stood at SI40,OOO,00O. Deem
Der l, 1897 it stood at Sl57 100000.
While the treasury ran behind &c.
100000 in cash its stock Of gold i'll
creased SI7,000,000. The dependence
OF the gold reserve upon revenues
isn't apparent SO long as there is
available cash in the treasury aside
from the gold reserve to pay defcien-
cies with. If the deficit continues to
run at the present rate for four or
five months longer all the cash ex-
cept the gold will be used up and
further deficits will reduce the gold
reserve. But the Dngley bill, we
are told will he producing plenty of
revenue in a few mouths and thus all
danger to the gold reserve will DO
averted.
That beng the case, it is difficult to
understand why 80 much Of the mes
sage was devoted to a discussion of
30 improbable a thing Us bond is
sue. What is the sense of discussing
bond issues when we have a sound
money party in power that the Ding
ley tariff law in full swing2 1t is
truly mprehensibIe. --Utice Oh.
server.