The Colored citizen., 1894-09-03
DEMOCRATIC EINANcIERINa.
How the Gold Reserve Fund Has Been Re-
duced Under the Present Administration.

How the Gold Reserve Fund Has Been Re-
duced Under the Present Administration.
The inability of the Democracy to
manage the affairs Of the country is
shown in a striking way by the condi-
tion Of the "gold reserve" in the treas
ury today. The gold reserve, as every
body knows, was a sum of 500, 900, 900
set aside by Republican legislation to
be held rs security for the $s40, 900, 900
of United States notes, or green
backs, in circulation When the Repub-
licans, on March 4, 1898, turned the
treasury department over to the Demo
cratic administration, this gold reserve
was intact, as it always had been un-
der Republican administration. The
800. 900, 900 was there and always had
been there since it was set aside years
ago as q fund sacred for the protection
of the war issue of money known as
greenbacks The alarm which the coun-
try felt at the incoming of Democrat.
10 administration which had promised
to overturn the financial system of the
government, coupled with the desire of
importers to await the reduction of the
tariff before they imported more goods,
combined to make the receipts of the
treasury very small. People, seeing
the coming storm, stopped buying any
more goods than were absolutely neces-
sary. and importers brought little
into the country, and therefore paid
little into the treasury in the form Of
tariff. The result was that the receipts
began to fall off Immediately after the
Democracy took charge and have for
the past year fallen below the necessary
running expenses.
The Democracy, which promised to
80 enormously reduce the expenses Of
the government, has found it impossi-
Die to keep this pledge, hut that. on the
other hand, the Republicans had adj
ministered it as economically as they
are themselves able to do. In conse-
quence of the falling off in the receipts
it has been necessary to constantly "dip
into' the gold reserve in the treasury
in order to meet the running expenses
Of the government. The result has been
q sad decline in the amount of the gold
reserve. 1t was over 800, 900, 900 when
the Democracy took charge of tho treas
ury. Within few months it fell be-
low the limit fixed by law and has been
sadly but surely tending downward ever
since.
A few months ago Secretary Carlisle,
finding it impossible to induce congress
to authorize him to issue bonds to get
more money with which to run the gov
ernment, took the bit in his teeth and
issued $50, 900, 900 worth of bonds un-
der an old law passed years ago. This
helped out the treasury for the moment
and brought up the balance to over
500, 600, 900 again. By the 1st Of May
Of the present year, however, it had
fallen below that limit, and today
stands at $50, 900, 900. This, it must be
remembered, includes $40, 900, 900 in
gold realized from the sale of the bonds
issued by Secretary Carlisle few
months ago. Had it not been for this
$40, 900, 900 which he thus added to the
gold reserve by plunging the country
$50, 900, 900 deeper into debt the gold
reserve today would be but $50, 900. 900.
As it is, with record Of 800, 900, 900
added to the debt of the country, it is
but $50, 900, 900, or little over one
half what the law requires and what
the Republicans always maintained it