Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1898-01-02
bonds AND CON

One OF the features Of the presi-
dents message most difficult to ac-
count for Is 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 n occa-
sion. President Mckinley says that
we have s900.00O,0C0 O, currency to
keep at par with gold; that nobody is
obliged to redeem III gold but the
government; that the n OF the
government are not required to be
paid in gold; that the only way the
government car get gold with GER
tainty is borrowing. He adds:
The law which requires the gov
eminent, after having redeemed its
United States. notes, to pay them ont
again as current funds, demands a
constant replenishment OF the gold
reserve. This is especially so in times
OF business panic and when the rev.
eDues are insufficient to meet the ex-
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 u dan
ger, issue more bonds and supply the
needed gold--or shall we provide
other leans to prevent the recurring
drains upon the gold reserve?
III no further 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 Mt long or short
periods, bearing a 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 n wick
cd inventions OF President Cleveland?
Why should he make the republicans
swallow the endless chain" theory,
and especially at this time? There is
no pressure o tending to diminish
the COLL reserve. Tho insufficiency
Of the does not lave such a
tendency, as the experience OF the
past four months shows. While the
revenues have been running behind
at nm average rate Of more than 49,
000,001, the gold reserve has steadily
and materially Increased. July |,
1897, it stood at sI40,OO0,O0O Deem
Der l, 1897 it stood at Sl57, 100000.
While the treasury ran behind SiG,-
100000 in cash its stock Of gold IN
creased sI7,000,0o1. 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 deiicien-
cies with. II the deficit continues To
run at the present rate for four or
five months longer all the cash cx.
cept the gold will lie used up and
further deficits will reduce the gold
reserve But the DInRley bill, we
are told will be producing plenty OF
evenue in a few mouths and thus all
danger TO the gold reserve will 10
aVerted.
That beng the case. it is difficult to
understand why so much Of the mes
sage was devoted to n discussion OF
so improbable ii thing rs a bond is
sue. What is the sense of discussing
bond issues when we have Il sound
money purity in power that the Ding
ley tariff law in full swing? Ii is
truly incomprehensibIe.- Utice Oh.
server.