Omaha daily bee., 1899-11-21
CRITICISM OF che TREASURY.

! III was 10 be expected tnht Ine sec
| retary of the treasury would be crti
cised for offering to buy bonds in order
| to relieve the monetary strlngency, by
those who can see no merit in any ac-
ton of the administration, but the busl.
ness interests of the country which
have realized the wholesome effect of
the treasury policy in this particular
will heartily approve it. Perhaps it
was not really necessary to buy bonds.
Possibly the stringency in money
would have passed away without any
relief from the government The fact
that only about one-fourth the amount
of bonds the treasury is prepared to
purchase has been offered shows that
the condition of the money market was
not so serious as it was thought to be.
But what was the plain duty of the
secretary of the treasury in the pres
ence of n situation which seemed to
threaten grave consequences to the bus
mess interests of the country? Mani
festly to use whatever authority he
possessed to avert the danger. 1t had
become difficult for legitimate en-
terprises to borrow what money they
required and there appeared good rea>
son to apprehend that this would be-
come more difficult, with the necessary
effect of checking business operations
Whether well founded or not there was
a feeling of uneasiness and anxiety in
financial circles, the tendency of which
was to cause curtailment of loans
and an increase in the interest rate,
both injurious to legitimate business.
The treasury is well supplied with
money and the law authorizes the Sec
retary to purchase bonds when there
is surplus with which to do So In
dependent of the gold reserve Secretary
Gage has at his disposal about $780,
100000, an ample balance when the re-
ceipts of the government are equal to
the expenditures, as they are at pres
ent Under such circumstances 1t was
obviously expedient for the treasury to
release some of it's idle money, thereby
relieving and reassuring the money
market. and there can be no doubt that
had it not done this those who now
criticise it's action would have con
demned it for neglect of the business
interests of the country.
1t is charged by these critics that the
purchase of bonds involves a loss to the
government, but it does nothing of the
kind. The fact is that the treasury
saves in interest all or more than it
pays in premium. Hence the talk about
taxpayers suffering from the transac-
ton is utterly groundless. 1t is also
alleged that the action of the treasury
was in the interest of spectators, but
there is certainly no evidence of this.
1t has operated to check the decline of
values, but this is Il result of which
spectators do not get all the benefit.
Objection to the purchase of bonds by
the treasury has come from bankers
because it interfered with the mainte-
nance of high rates of interest, but bor-
rowers of money will appreciate this
advantage.
The fact is that Secretary Gage did
his plain duty in offering to buy bonds
for relieving the money market and
the good effects of his action are ap-
parent in the improved financial situa-
ton. He has simply followed prece-
dent in this matter and acted strictly
within the authority of law. The criti-
cism of the partisan opponents of the
administration will have no weight
with business men whose interests are
conserved by the policy of the treas
ury.