The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-11-24
THE TREAsuRY's BOND PURCHASE

| The rise In certain stocks. coupled at
the same time with comparatively small
offering Of bonds for sale to the treasury
under Secretary Cages proposition to pur-
chase SOS, 900 600 of the governments out
standing obligations. demonstrates even
more clearly than was at first understood
BY intelligent people that the trcasury's
offer was rather designed to aid some Wall
street spectators than the money market
as whole.
This proposition to buy bonds under
the circumstances, is a more Objectionable
one when il is looked into than even the
issue of new bonds which during Mr.
Cleyeland's administration was so severely
criticised by the republican party. TINT
issue Of bonds had at least the plausible
excuse OF obtaining gold with which to
replensh the gold reserve. The purchase
OF bonds at this time is but donation
of n big premium and an advance of in
terest to the spectators in the money
center OF the Nation who had found them
selves on the brink of precipice.
One of our Intelligent Southern con
temporaries, the Birmingham age Herald
very correctly says: There is no reason
why the government should pay a high
| premium for its bonds. The proposed
| transaction is unnatural and unnecessary
The export trade of the country is very
large and the balance OF trade is on the
American sids to heavy amount TIL
general business of the country is pros
porous and all legitimate enterprises ar,
doing exceedingly we'll. Only the specula
tors are cramped and dsgruntled. 1
may be said in this connection. too, tina
the existence of this prosperity is tn
proudest boast of the admins ration f.
self.
This tightness of money matters amonI
the Wall street and trust spectators ha
been caused largely by the more genera
distribution OF the Nations none!
throughout the country than for some
time past The cry for relief, therefore,
has been limited to Wall street, so to
speak, and as another representative
Southern journal. the Atlanta Consttu. on
says: Wall street has lungs and when
it is suffering from n money famine it
uses them" And 1t never uses them with.
/ out awakening n generous response from
the republican administration! Cleveland
! issued bonds to replenish the treasury
/ Gage and Mckinley deplete the treasur,
to protect Wall street! Cleveland could
| have avoided increasing the debt If only
! he IA hpa 10 nyI, 4,
avail himself of the government option
| to redeem the greenbacks in silver as vel
as gold; Gage could have kept his none,
| in the treasury but for the republic AZ
| party's obligations TO Wall street, Boil
transactions are subject to criticism. bu
hensible
/ But this proposed bond purchase mas
wider significance In that II again call
attention to the narrowness and wan
Of nexiblity OF our whole monetary iys
tenn. II squeeze" occurs somewhere
there is no capability in the system itsel
TO meet the extraordinary conditions. Aside
from limited gold coinage ANA the oc.
casional establishment of a new Nationa
bank, there is no way of charging the
volume of money in circulation to meet
the emergency OF increased business de
mands for money Time and again. there.
fore, has the treasury been called upon
to use various devices for getting rid o.
some of its cash to lease the money mar,
ket." Few nations are hampered in THU
way as Is the richest of them all
I II is this difficulty that the democrati,
party would remove by bimetallism anc
the free coinage OF both silver aud sod.
The production" of money could ant
should keep pace with production in al
other lines in order to facilitate the ex.
pansion OF business and prevent the sta.
tionary dollar, SO 10 speak. from constant.
i ly approaching in value.
So long as the secretary OF the treasury
in the face OF an apparent National pros
perity must continue to use the treasur,
to bolster up the money market, or aver
a panic In Wall street, It Is an insult /,
the Nations intelligence to say that ou
monetary system is safe and satlsfac
, tory one and that We have suffcienc,
. OF money in the countryl