The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-10-23

shall be payable, with the interest accrued
thereon, at such time, not exceeding one
year from the date Of its issue, as the sec
Rotary of the treasury may prescribe pro-
ylded. that the amount of such certificates
outstanding shall at no time exceed $780,
600, 600"
Now, it is perfectly true that nobody
could foreses exactly hW' long the war
with Spain would last, but it is also true
that II Mr.. Gage had seen fit to avail him
self of section 80 he would not have needed
TO guess at all. The sum of 500 600, 900 he
was authorized to borrow in that way would
have suffced until the dawn of peace was
seen to be at hand, He could then have
begun to pay off the treasury bills out OF
the surplus revenues provided by the act
In any case he had the authority to borrow
4oO,O00,O00 on ten twenty year bonds. so
that he could, in no circumstances, be put
in hole. II the treasury bills had been
issued they would even now be in process
OF liquldatiop whereas, as things have
turned out. bonds to the amount of $780,
100000 have been issued on which interest
amounting to $50, 900 must be paid il
redeemed at the expiration of ten years. or
S12O,000000 II they be allowed to run to
the latest maturity. This Is an unmiti-
gated waste of the public money--that is
the plain English Of the matter. A mer-
SO improvident a manner would be a fit
subject for interdction.
AS matter OF fact the bonds had no
enect on the gold reserve which the treas
ury bills would not have had, for no pro-
vision was made, as in previous cases. that
subscribers to the loan should make pay
ment In gold, or its equivalent II was
thought, and rightly, that any kind of
American money was good enough to win
the cause of Cubsn freedom. The gold re-
serve has grown enormously in conse-
auence Of the loan. but simply because
gold was the most convenient medium OF
payment. That consideration would have
had Just the same validity in the case of
the treasury bills.
1t is undeniable. as the Journal Of Com
| merce says. that Mr. Gage can relieve the
congestion of the treasury by buying bonds
in the open market, ard that is the
OBVIOUS course, II he desire to make up
fawless record of imbecility. The quo
tations OF the various issues Of United
States bonds were yesterday as follows:
New threes los S-S new fours l27 A
old tours III IL, fves ll2 IL twos 90
Now the American people win be apt to
do good deal Of thinking when they see
the government throwing away millions in
III tapU ot premiums TO bondholders sim
ply because the secretary of the treasury
was either unwilling or unable 10 see he
spiiu tut emu OF MS nose. Inere the
new fours. for example. Those bones were
Sold TO J. Plerpont Morgan and associates
over the bargain counter by the Cleveland
administration, at l04 Ia although the
quotation of similar bonds in the New
York market was then III. The transaction
w exec the Cleveland administration
and the same fate will befall Mr.. McKin,
- Z 80 shall choose to allow Mr.. Gage
to use the proceeds OF 3 per cent bonds in
the purchase of fours around 1870 The
sMerics PEOPLE will bear much but there
is limit to their endurance
The truth is that Mr. Gage issued ,ha
horrs sther than treasury bills M the
solicitation OF New York bankers who
~ Entirely selfish reasons for their
importudty. The fnanoiers wanted Tho
scnes as basis for circulation. and thew
oesired 10 see couple OF hundred miu,ons
OF money locked In the treasury in ordsr
that the level of interest Rates might ha
rslsea' Ihat was splendid arrangement
70, the bankers. but the American neon,o
oln ,ot come in al all Some div thsrs
wiz be secretary Of the treasury WIZ
WIN ICON to tbs interests of The co,,r,r,,
1 nrst, Srd icll Wall street Ia MIND ~ ~.
BUSINESS Ar. Moreau, and mon =, ~
k'dney. have been at the bat long .no, uss
nigh time that they gave somehad,.
else . chance. so"euody