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Bond Issue

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Some days since, Secretary Carlisle decided, on account of the embarrassed condition of the treasury, that the time had come when it was necessary to protect the gold reserve1 from farther reduction by an immediate issue of bonds. Accordingly he issued a cali for subscriptions for $50,000,000. His authority for doing this is found in the Act of Jan, 14, 1875. These bonds are to be redeemable in coin at the pleasure of the government after the expiration of ten years, bear five per cent. interest, payable quarterly, and are to be sold at not less than 117.23. This reduces the rate of interest to three per cent. Upon the question of issuing bonds there is considerable difference of opiniĆ³n, sentiment being divided along the same lines, and as appeared during the debate on the repeal of the silver purchase clause of the Sherman Act. All agree, however, as to the necessity of in creasing the government revenues in some way. The right of the secretary to issue bonds under the act named and the necessity for doing so are not to go unchallenged, however. The friends of silver are making a Ć«etermined stand to prevent it if possible. The udiciary committee of the house ast week ordered a favorable report on Representative Bailey's resolution questioning the right of the secretary to issue bonds, nevertheless the best financers of the country practically agree that his right is not questionable. The silver men would prefer to have the secretary coin the silver bullion lying idle in the treasury, and still others hold that the emergency should be met by issuing legal tender notes. In the absence of any action by Congress, however, Secretary Carlisle seems to have adopted the only course open to him.'


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