The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1899-11-21
That Bond Purchase.

n offering to buy $2jOOO, 900
worth of government bonds
has been variously interpreted. Some
critics have professed to see In It
Wall street device to affect the specu-
lative market. Others have regarded
it as having been intended as an object
lesson to illustrate to the country the
need of a more elastic currency sys-
tenn. The fact that the governments
offer to buy bonds has not brought for
ward any general offering of bonds for
sale shows that the stringency which
was believed to exist did not exist il
any serious degree and therefore the
claim of Wall street influence does not
appear plausible. l}ut before credit
ing with dishonorable motives
public official who has always
borne an honorable reputation it
would be fair on the public's part to
hear what he has to say. We quote
from an interview with Secretary Gage
printed in the Chicago Times Herald:
I'm a general way the course of
finances, rs indicated by the history
of the last three weeks, was produc-
ing not only agitation in New York
but a growing anxiety throughout the
country in the minds of those who
We're engaged in productive industry,
like manufacturers. The manufac-
turer has to buy raw materials, often
times far in advance of his immediate
necessities Few have capital enough
to pay cash down, but rely upon the
use of credit. When anxiety and
doubt about the future reach this class
! they check operations The fear that
such raw materials as they may con-
template buying will not, when the
labor cost shall nave been added, find
a market at fair prices naturally
causes them to hesitate. SO it can be
readily seen that the question was not
n question of New York alone, but
that it was possible the far-reaching
effects of this anxiety might touch
every industry in the country. Whether
1t would go so far or not was a ques-
ton which neither the secretary Of
the treasury nor any other human
being could possibly determine. In
such matters one cannot draw definite
conclusions from a set of facts, how
ever clearly understood. 1t is the in
iuence of these facts upon the minds
and imaginations of the public that
cannot be measured.
1T was the departments fair belief
that the situation 50 manifested in
New York would by natural causes
cure itself. On the other hand, the
situation was delicate ald might at
any time be seriously aggravated by
some unforeseen circumstance. 1t is
/ further to be considered that the
treasury itself was in danger of ag
gravating the situation by a further
/ locking up Of funds in the vaults Of
J the government to the prejudice Of in
dividual and business interests APP
| pcarances indicate-.they are not Gb-
| solute certainties-that the receipts of
/ tho government will be in excess of
/ its expenditures. This argument alone
| would seem to justify as a prudential
/ step on the part of the government to
make it possible, under proper condi-
/ lions, TO transfer moneys from the
D = ~
one any good, to the market, wht"e
they might be usefully employed. The
| proposal 70 buy bonds was a proposal
! which would he operative only to the
/ extent that the holders of such secur!-
/ ties might see in the necessities Of the
! market an advantage i'm exchanging
the hest bonds Mt the current market
I Tn
the treasury did not invade the street
with fresh money, and thus interfere
with the natural relations Of men with
each other
"FrOm quite another pont of view
the transaction is justified. Under the
law II is the duty of the Secretary ot
the Treasury to buy for the sinking
fund-out Of surplus revenues-United
States bonds TO an amount equal to
per cent OF the public debt, together
with a sum in addition equal to one
years interest on the whole amount
heretofore purchased for the sinkine
fund. The requirements Of the statute
make it the duty Of the secretary TO
buy, If surplus revenues be adequate
something more than $50, 900 600 OF
bonds each year for the sinking fund
Unfortunately for the last nine years
there has been no surplus revenue
available for such purpose, and unit
the present no purchases have beer
made. should the surplus revenues o
the treasury be adequate it will b,
the secretary's duty 70 make further
purchases from time to time. 1t is no
, a matter OF choice with him, but
matter of official duty"
; This explanation appears reasonabl,
? on It's face. 1t meets and fits tn
known facts, including the circum
! stance that Mr.. Gage had had previoul