Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-12-03

funds. exclusive of gold, became also i'm
material to them, and they, too, drew gold
from the Treasury for boarding against
all contingencies. This is plainly shown
by the large increase in the proportion of
gold withdrawn which was retained by our
own people as time and threatening Incl
dents progressed. During the fiscal year
ending June 80, 1894, nearly sS5O0O,OOO in
gold was withdrawn from the Treasury
and about 81, 100000 was sent abroad, while
during the fiscal year ending June 80. 1895,
over $117,OOO,OOO was drawn out, of which
only about s66,OOO0OO was shipped leaving
the large balance of such Withdrawals to
be accounted for by domestic boarding.
Inasmuch as the withdrawal of our gold
has resulted largely from fright, there is
nothing apparent that will prevent its con-
tinuance or recurrence, with it's natural
consequences, except such a change in our
financial methods as will reassure the
frightened and make the desire for gold
less intense. 1t is not clear how an in
crease in revenue, unless it be in gold. can
satisfy those whose only anxiety is to gain
gold from the Governments store.
1t can not therefore be safe to rely upon
increased revenues as a cure for our pres
ent troubles
~
1t is possible that the suggestion of in
creased revenue as a remedy for the diff
culties we are considering may have origi-
mated in an intimation or distinct allega-
ton that the bonds which have been issued
ostensibly to replenish our gold reserve
were really issued to supply insufficient
revenue. Nothing can be further from the
truth. Bonds were issued to obtain gold
81 t;opo
AS has been shown, the gold thus obtained
has been drawn again from the Treasury
upon United States notes and Treasury
notes. This operation would have been
promptly prevented if possible; but these
notes having thus been passed to the
Treasury they became the money Of the
Government, like any other ordinary Gov
eminent funds, and there was nothing to
do but to use them in paying Government
expenses when needed
At no time when bonds have been issued
has there been any consideration of the
question of paying the expenses of Gov
eminent with their proceeds. There was
no necessity to consider that question.
At the time Of each bond issue we
had a safe surplus in the Treasury
for ordinary operations, exclusive of the
gold in our reserve. In February, 1894.
when the first issue of bonds was made,
such surplus amounted to over $4,000, 600;
in November, when the second issue was
made, it amounted to more than $40, OOO,O 600.
and in February, 1895, when bonds for the
third time were issued, such surplus
amounted to more than $1OO.0OO.OOO. 1t
now amounts to s9SO72, 5000.
Besides all this, the Secretary of the Treas
TRY had no authority whatever to issue
bonds to increase the ordinary revenues or
pay current expenses.
I can not but think there has been some
confusion of ideas regarding the effects of
the issue of bonds and the results of the
withdrawal of gold. 1t was the latter pro-
cess and not the former that by substituting
in the Treasury United States notes and
Treasury notes for gold increased by their
amount the money which was II. the first
instance subject to ordinary Government
expenditure.
Although the law compelling an increased
purchase of silver by the Government was
passed on the 18th day of July, 1890. with
drawals of gold from the Treasury upon the
notes given in payment on such purchases
did not begin until October, 1891. Imme-
diatefy following that date the Withdrawals
upon both these notes and United States
notes increased very largely, and have con-
tinued to such an extent that since the pas
sage of that law there has been more than
thirteen times much gold taken out of the
Treasury upon United States notes and
Treasury notes issued for silver purchases
as was thus withdrawn during the eleven
and half years Immediately prior thereto
and after the LIST day Of January, 1879. when
specie payments were resumed.
1t is neither unfair nor unjust to charge
large share of our present financial perplexi-
ties and dangers to the operation of the laws
of 1878 and 1880 compelling the purchase of
silver by the Government, which not only
furnished a new Treasury obligation upon
which its gold could be withdrawn, but so in
creased the fear of an overwhelming flood of
silver and forced descent to silver pay
ments that even the repeal Of these laws did
not entirely cure the evils of their existence.
Free Silver.
While have endeavored to make plain
statement Of the disordered condition of our
currency and the present dangers menacing
our prosperity. and to suggest a way which
leads to safer financial system, have con-
stantly had in mind the fact that many of
my countrymen, whose sincerity I do not
doubt, insist that the cure for the ills now
threatening us may be found in the single
and simple remedy OF the free coinage OF
silver. They contend that our minis shall
be at once thrown open to the free, unlimited
and Independent coinage of both gold and
silver dollars of full legal-tender quality,
regardless Of the action of any other gov
eminent and in full view of the fact that the
ratio between the metals which they sug-
gest calls for one hundred cents worth of
gold in the gold dollar at the present stand
ard, and only fifty cents in intrinsic worth of
silver in the silver dollar.
Were there infinitely stronger reasons than
can be adduced for hoping that such action
woul1 secure for us bimetallic currency
moving on lines of parity, an experiment so
novel and hazardous as that proposed might
well stagger those who believe that sta
bility is an imperative condition of sound
money.
No government, no human contrivance or
act of legislation, has ever been able to hold
the two metals together in free coinage at
ratio appreciably different from that which
is established in the markets of the world.
Those who believe that our Independent
free coinage of silver at an artificial ratio
with gold Of 16 to would restore the parity