The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-10-27

tention of the government to make still
further purchases of government bonds for
the double purpose of reducing the national
debt and reducing the accumulation of
money in the treasury to the detriment
of business interests Since July last,
there has been accumulated i'm the treas
ury a surplus of more than S23,OOOOOO, and
availabl cash in treasury has reached the
enormous sum of $17O 100000, which, of
course, does. not include the reserve funds
This accumulation of cash in the treasury
is what has led, as much as anything else,
to the talk about a revision of the tariff
There are two ways in which the surplus
may be taken out of the treasury. One is
by the reduction of the revenues so that
less money will be paid into the treasury,
and the other by the purchase of bonds,
thus at the same time reducing the treasury
surplus and reducing the national debt.
The matter of the purchase of bonds has
lately been receiving very serious attention
from the treasury officials. There is danger
that within the next few weeks gold will
be exported to London. and this would, as
a matter of course, tighten money in the
financial centers of the country. The prob
lem that is presented To the treasury at
this time is whether il would be better to
anticipate a money stringency and relieve it
by purchasing bonds, thus putting money
into immediate circulation, or to wait for
the slower action of Congress in reducing
the revenues either through tariff revision
or through reciprocity. The impression in
the Treasury Department seems to be that
the first method will be adopted, and that
before the 1st of December announcement
will be made that the Treasury Department
is prepared to buy long-term government
bonds to the amount of at least $25. .OOJ, go,
this at a price that will be satisfa Glory
both to the government and to the holders
of the bonds
In working out this bond-puchasing prop
osition the treasury officials are also con-
sidering tariff revision through reciprocity.
Straight tariff revision as proposed by Rep
resentative Babcock does not seem TO find
general favor any more than does straight
reciprocity. The thing that is being talked
about most just now is a compromise be-
tween tariff revision and reciprocity-a prop
osition whereby the Congress shall pass "A
law reducing the duties articles that
are exported in quantity from the United
States. Thus. steel rails are now being ex-
ported from this country TO all of the mar
kets of the world. 1t is proposed to have
Congress pass a law whereby when any
articles reach the point in the export list
now occupied by steel rails the duty upon
that article shall be authentically reduced.
Provision OF that sort would eliminate the
California and New England opposition
that has successfully held up reciprocity
treaties for the last few years and at the
same time il is believed they might be so
framed as to meet the underlying principles
OF the Babcock bill. 1t is understood that
this plan will be suggested TO the recipro-
city congress that is to meet in Washington
next month. Many officials Of the govern
ment believe that the cardinal advantage
OF reciprocity is keeping the doors of
European countries open 10 American trade
avoiding etaliation-and they believe that
the latest scheme suggested would ac-
complish that purpose, leaving the gov
ernment free TO make special treaties of
reciprocity I'm special cases.