Cherry County independent. (Valentine, Cherry Co., Neb.) 18??-1896, 1895-12-05


be the established policy of the United
States to maintain the two metals on
parity with each other upon the present
legal ratio, or such ratio as may be pro-
In view Of this declaration It was no,
deemed permissible for the secretary o.
terms conferred on him by refusing 20 pay
gold on these notes when demanded, be-
cause by such discrimination In favor OF
the gold dollar the SO called parity Of the
two metals would be destroyed and grave
and dangerous consequences would be
precipitated by affirming or accentusting
the constantly widening disparity between
their actual values under the existing ra-
ito.
1t thus resulted that treas.Iry notes is
sued in payment of silver purchases under
he law of 1880 were necessarily treated as
gold obligations at the option OF the hold
er. These ,ses notes. on the lst day OF #, Noyem-
monthly purchase OF silver was repealed,
amounted to moro than SIS. .Oeo. The
added to the United States notes still un-
diminished by redemption or cancellation.
constitute volume Of gold obligations
cations are the instruments which ever
since we have had a gold reserve have
been used to deplete It,.
This reserve, as has been stated. had
fallen in April. 1893. to $97,011, ,380. It has
from that time to the present, with very
few and unimportant upward movements,
steadily decreased except as it has been
bonds.
Among the the causes for this constant
and uniform shrnkage in this fund may
be mentioned the great falling of of ex-
ports under the operation OF the tarm
law until recently in force. which Grip
pied our exchange of commodities With
foreign nations and necessitated to sonnsr>
extent the payment Of our balances "a
gold; the unnatural infusion Of silver into
ton for it's free and unlimited coinage
which have created apprehension as tq
our disposition or ability to continue gold
payments; the consequent boarding or
gold at home and the stoppage of invest
ments OF foreign capital, as well as th9
return OF our securities already soio
change, which induced the shipmeI OF
our gold to be drawn against, as a mat
ter Of speculation.
The Three Bond Issues.
In consequence of these conditions the
gold reserve, on the 1st day Of February
more than s31, coo, 900 during the preced-
ing nine months, or since April, 1893. Its
replenishment being necessary, and no
possible, resort was had to the issue and
sale of bonds provided for by the act OF
1875; Fifty MILLIONS s .Sa Of II these bonds were
added to the reserve fund Of gold then on
hand. AS a result of this operation this
reserve, which had suffered constant and
large withdrawals in the meantime, stood
on the 6th day Of March, 1894, at the SUM
of s107. .446s02. It's depletion was, how
ever. Immediately thereafter so acceIer-
ated that on the 3oth Of June, 1894, it had
fallen to s64. 4.S7S025, thus losing by with
drawals more than A2000.000 in FIVE
months, and dropping slightly below it's
situation when the sale of $4,000 oet In
bonds was effected for its replenishMeLt.
This depressed condition grew worse, kn6
on the 2ith day Of November. 1894. our
gold reserve being reduced to $57, $50. 701,
1t became necessary TO again strengthen
1t. This was done by another. sale OF
bonds. amounting to $50. 600 coo; from
which the fund was increased to SILL
142. .021 ON the 4th day of December, 1894.
Again disappointment awaited the anx-
fous hope for relief. There was not even
a lull in the exasperating Withdrawals
of gold: On the contrary, they grew lar
ger and moro persistent than ever. Be-
tween the 4th day Of December, 1894. and
early n February, 1852 period of sea Tce-
ly moro than two months after the &C.
ond reinforcement of our gold reserve hv
the sale Of bonds, it had lost by such with.
drawals more than SG9, ,0G0 coo, and had
fallen to s41. .340.fS1. Nearly s43000.000 had
been Withdrawn within the month imme-
diately preceding this situation. In an
ticipatfon of impending trouble had on
the 2Sth day Of January, 1895, addressed
a communication to the congress fully
Gus position, and earnestly recommend
ing that authority be given the secretary
of the treasury to issue bonds bearing q
low rate of interest, payable by their
terms in gold, for the purpose Of main
tanning a sufficient gold reserve, and also
for the redemption and cancellation OF
notes issued for the purchase of
silver under the law of 1890. This recon-
mendation did not, however, meet with
legislative approval
Bargain with the Syndicate.
In February, 1895, therefore, the situation
was exceedingly critical. With a reserve
perilOuSly low and q refusal of CONGRESS
sional aid everything indicated that the
end of gold payments by the government
was imminent. The results Of prior bond
issues had been exceedingly unsatisfactory
mediateIy succeeding their public sale IN
open market gave rise to a reasonable.
suspicion that large part OF the gold
paid into the treasury upon such sales
was promptly drawn cut again by the
presentation of United States notes or
treasury notes and found its way to the
bands Of those who had only temporariiy
parted with it in the purchase of bonds
IN this emergency. and in view Of it's sur
apparent TO those upon whom the strug-
gle for safety was devolved not only
that our gold reserve must. for 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
better results than those real
zed on previous sales. An agreement was
therefore made with a number of finan-
.iers and bankers whereby it was stipu-
ated that bonds described in the resump-
ton of 1879, payable in coin thirty years
after their date, bearing interest at the
ate of per cent. per annum and amount
ne to about $62, coo 900. should be ex-
changed for gold receivable by weight
mounting to a little more than $65, coo COO
This gold was to be delivered in such in
,taliTnents as would complete it's delivery
within about six months from the date Of
he contract and at least one-half Of the
amount was to be furnished from abroad
e was also agreed by those supplying this
,old that during the continuance OF the
.ontract they would by every means in
heir power protect the government
.gainst gold Withdrawals.
The contract also provided that, II con-
,resS would authorize their issue, bonds
'ayable by their terms IN gold and bear
ng interest at the rate Of per cent. per
-nnum might within ten days be suoSti-
Ured at par for the per cent. bonds de-
cr40ed in the agreement. On the day f5is
ontract was made its terms were c1fn-
1unicated to congress by q special execu-
i've message in which it was stated that
nore than 600 would be saved to
he government IL gold bonds bearing
er cent. interest were authorized to be
ubstituted for those mentioned in the
ontract.
The congress. having declined to grant
he necessary authority to secure this
aving, the contract, unmodihed, was car
led out, resulting in a gold reserve
mounting to $107, GIL $50 on the Sth day
( July. 1895 The performance Of this
1v,Iry Tha