Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1894-12-05


cordingly. a surplus Of s2s,sli,y2O 10
estimated for that year. In my last re-
mort called attention 10 the unsatls-
factory condition OF our financial le6ls'
hfion, especially to tho Issue and re-
dcmption OF circulation notes BY the
government and the Inability OF the
secretary Of the treasury under exist
ing laws 10 make prompt and adn-
quate provision for the support " tue
public credit The experience OF the
present yenr has confirmed ana
strengthened tie opinions then eSr
prcssed. and therefore respectfully,
but most cnrneatiy, urge upon con-
gresa the necessity OF remedial lekis-
lnuon during the present aeHsion. The
well known defects In our financial nys-
TEN and the serious nature OF the evils
threatened BY them have done more
during the last two years TO iinphir the
credit Of the government ana the pco-
pie OF the United tSnteH AT home ana
abroad and to check our industrial and
commercial progress than all
other thlnFs combined and our flrat
and plalnest duty il to provide, u pos
siblp some effective method for the
prompt and permanent relief OF tho
country from the consequences Of the
present unwisc policy, a brief state
ment OF the practical and unavoidable
results Of the existing legislntlOn VIII
our financial affairs more clearly tllnn
any argument that could be sub
mitted.
The secretary then reviews the CIR
cumstancch leading up to tho first nifty
million OF bonds nH u means OF replon-
iahing the gold reserve. including s5s,-
6gO.0i7 and Increasing the free gold IN
the treasury to Sl07 iiG, sO2. The lowest
point reached By the reserve since the
resumption OF specie payments was on
the 7th day Of August. 1884, when by
reason OF Withdrawals In the redcmp-
ton of notes II was reduced 10 lt2. 49,
900 After that date II was slowly re-
plcnshcd by voluntary exchanges of
gold coin for United States notes by
banks aud by Amali receipts OF gold In
the payment OF dues TO the government
until the "a or November. 1894, when II
reached the sum of iGl, A1s,3ii In the
meantime, however, the frequent pro-
sanitation Of notes FOR redemption In
gold by individuals and Institutions
not dos.sng II for export clearly lndl-
Gated tho cNiniGncg OF feeling OF I'M
caalnoss IN the public mind while for
clgn exchange was almost constantly
Mt or near rate which made II moro
profitable to export gold than to pur-
chase bills and consequently withdraw
ais Tor shipments were daily threaten
ed, In addition 10 thcne causes Of nnx-
~ our financial centrrs and the general
depression In buainoaH which prevailed
in this country had 40 reduced the
rntea Of discount that The lnduccmcnt
TO keep hinda abroad whore better In
veatmeutg could be made were much
greater than In ordinary times. and
this, together with tho other f0ats
stated. made II highly lmprudent TO
neglect any prco0utl0n which appeared
necessary 20 insure the safety OF our
financial position. Therefore. the sec
oud issue " s6100O000 waH decided
upon. For this rHur proposals FOR
which were issued last month. $50 bids
were received, amounting TO tl76. lG,05O
nearly all ~ which were ~ rates which
would Yield to the investor . per cont
or less one bid for the whole Sum Of
Sj0,000.000 upon the basis OF 2S7S per
cont ana being the most advantageous
oiter for tho government that was
made eithor alngly or ny aggregate In
the separate bids wna accepted and the
proceeds uf the anlc sos, bIS 600 have
nearly an been pni1 Into the treasury
according To the terms nf tho sale.
The transaction iustlnoa tho opinion
that a l.2 per cent bond having
Reasonable time To- run could probably
have been Hold at par and certainly
That per cent bond could have been
dinposed OF NJ or above that rate AS
NV hhANNiAAN W ANNNt Wlltl NFlI h0MuA
already exists and tho present stnta
or our financial ioglalntlon oomppia It's
occasional exercise, repeat the recon-
mcndatlon made IN my loat annual re-
port that. In the Interest " the govern
ment and people, power be conferred
tipOu tho secretary OF the treasury to
negotiate loana 40 ~ lower ratio 90 inter
est ana Tor u shorter limo than nrc now
allowed, The existence Of such author
iiy inatcad ~ Increasing the prohnbll-
tiea OF u frequent resort Ia that means
nf rnislng money, would have the v1n-
trnry effect, because when It IN known
that the secretary Of the treasury lH
clothed with ample power and facilities
"a procure means FOR the maintenance
Of Che reserve, public confidence IN the
ability of tho government TO meet
promptly nll demands ON II Will be
much Auongpr than under present cir.
cumatnucea, laaldea tho policy OF
limiting the government 10 the sale Of
nntlquRted bonds bcarlng "a rate OF In.
torost wholly lnconsatont with the cx-
listing state ~ the public credit and
having u longer time 10 run than IL
apparently necessary at tho date OF ltg
Issue cannot he justified upon any
grounds OF cXpedlency or principle.
The laws should he so amended Ra
20 conform 70 the conditions aud re-
dulrcmcnta OF the public credit aud SCR
Vice at the present time, aud 1 enrn.
ostly hope thRt congress- VIII take early
Jcct,
Note Redemption,
No long as there nre In Calculation
under TIN authority of the Eoycrnmont
two coins unequal IN value, hui equal
IN leGAltendor qualities every conrid.
Grafton Of good faith and sound policy
REQUIRES the prompt redemption OF the
h0teh on presentation IA the Kind az
coin demanded by the holder and the
constant observance VI auch ndminia
tratlfe methods M may be necessary
70 preserve the purchasing power of the
leaa valuable metal This IL epsentlnl
10 tho continued circulation Of our ,,en'
arc silver dollnra and their paper ROB.
tenehtauNes at par. aud 60 abandon thia
policy without substituting hotter ono
IN rs place would not only fan 10 cura
many or the evils now oNlntlnr M,
would entail upon the people ~ M
country additional and greater onea
TINS situation IL the necessary rsanit
or iiree features OF our currency lerIs,
lelion ana IL cannot be pertnnnentiv
avoided or even temporarily Improved
without material changes In our in,vs
relating TO that subject.
These features ares
10 The circulation OF JInitea stata.
notes ns currency and their reasn,n'
tinn ~ coin on demand
W The compulsory Reissue of auch
n0tpN after redpOuflan : "NNH