The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-12-04

ton and cancellation of outstanding
United States notes and the treasury
under the law of $780, This recommen-
dalton did not, however, meet wlth-ieg
islative approval.
THE ARRANGEMENT WITH NOR
GAN EFT AL.
In February, 1895, therefore, the sit
uatiof was exceedingly critical. With
a reserve perilously low, and refusal
of congressional aid, everything indi-
Gated that the end of gold payments
by the government was imminent The
results of prior bond issues had been
exceedingly unsatisfactory and the
large Withdrawals of gold Immediately
succeeding their public sale In open
market gave rise to reasonable sus-
picion that a large part OF the goid
paid into the treasury upon such safes
was promptly drawn out again by the
presentation of United States notes or
treasury notes and found it's way to
the hands of those who had only tenn
porarily parted with it in the purchase
of bonds.
In this emergency, and in view OF It's
surrounding perpleXities, it became en-
tirely apparent to those upon whom
not only that our gold reserve must
for the third time in less than thirteen
months be restored by another issue
and sale of bonds bearing a high rate
of interest and badly suited to the
purpose, but that a plan must De
adopted for their disposition promising
better results than those realized on
previous sales An agreement was
therefore made with number of imam
ciers and bankers whereby it was stip-
ulated that bonds described in the re-
demption act of 1875 payable in coin
thirty years after their date, bearing
interest at the rate of per cent. per
annum and amounting to about S62,-
900. 000 should be exchanged for gold
receivable by weight, amounting to
little more than 500 900. This
gold was to be delivered in
such installments as would complete
it's delivery within about six months
from the date of the contract, ana at
least one-half of the amount was 10
be furnished from abroad. 1t was al
so agreed by those supplying this gold
that during the continuance of the con-
tract they would by every means IN
their power protect the government
against gold Withdrawals. The contract
also provided that if Congress Woulu
authorize their issue, bonds payable by
their terms in gold and bearing interest
at the rate of 8 per cent per anIuiil,
might, within ten days, be substituted
at par for the 4 per cent. bonds de-
scribed in the agreement. ON the Jay
this contract was made it's terms were
communicated to Congress by spec
ial executive message, in which IL was
stated that more than sixteen millions
of dollars would be saved to the gov
eminent if gold bearing 3 per cent: IN
terest were authorized to pc supsu-
n
tract.
RESULT OF THE CONTRACT.
The Congress having declined to-
grant the necessary authority to secure
this saving, the contract unmodihed
was carried out, resulting IN a golo re-
serve amounting to s1O7, 1880 on the
Sth day of July 1895. The performance
of this contract not only restored the
reserve, but checked for time the
withdrawal of gold and brought on
period of restored confidence and such
peace and quiet in business circles as
were of the greatest possible dement, TO
every interest that affects our people.
[ have never had the slightest ms
giving concerning the wisdom or pro-
priety of this arrangement and am
quite willing to answer for my full
share of responsibility for its prono-
ton. [ believe it averted disaster,
the imminence of which was foltun-
ately not at the time generally under
stood by our people.
RENEWED WITHDRAWALS
Though the contract mentioned
STAYED for a time the tide of sold with
drawal, it's good results could rot be
permanent Recent Withdrawals have
reduced the reserve from S1O7 81 .92O on
the Sth day of July, 1895, to S79, 2S3, $50.
How long it will remain large enough
to render it's increase unnecessary is
only a matter OF conjecture, though
quite large withdrawals for Shipment
in the immediate future are predicted
in we'll informed quarters. About $751;
900, 900 has been Withdrawn during the
month of November.
The foregoing statements of events
and conditions developed the fact that
after increasing our interest bearing
bonded indebtedness more than S162-
900. 900 to save our gold reserve, we are
now nearly where we started. having
now in such reserve S79333,966 as
against S65, 43S,377 in February. 1894,
when the first bonds were issued. The
amount drawn from the treasury APP
pears very large, gathered from the
facts and figures herein presented it
actually was much larger, considerable
sums having been acquired by the
treasury within the several periods
stated without the issue of bonds.
AMOUNT OF THE WITHDRAWALS
On the 2Sth of January, 1895, it was
reported by the secretary of the treas
usy that more than S172,000,000 of gold
had been withdrawn for boarding or
shipment during the year preceding.
He now reports that from January 1,
1879 to July IA, 1890, a period of more
than eleven years, only a little over
SIS, 900 was Withdrawn, and that
between July IA, 1890, the date of the
passage of the law for an increased
purchase of silver and the first of De-
cember, 1895, or within less than five
and a half years, there was Withdrawn
nearly S275000, 900, making a total of
more than s403 ,0O0,0 900 withdrawn from
the treasury in gold since January 1,
1879, the date fixed in 1875 for the re-
tirement of the United States notes.
TREASURY NOTES READY FOR
MORE DEPLETION.
Nearly 1927, O0O, 900 of the gold thus
Withdrawn has been paid out on these
United States notes and yet every one
of the s346, 900 is still uncancelled
and ready to do service in future gold
depletions. More than SIC, 100000 in gold
has, since their creation in 1890, been
paid out from the treasury upon notes
given on the purchase of silver by the
government; and yet the whole,
amounting to s153.0OO,0O0. except lit
tie more than s16,000,00 which have
been retired by exchanges for silver
at the request of the holders remains
outstanding and prepared to join their
older and more experienced allies in
future raids upon the treasury's gold
reserve. In other words, the govern