Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1895-12-06


plying this gold that during the continu-
aIcc Of the contract they would by every
means in their power protect the gov
contract also provided that If congress
would authorize their issue, bonds payable
by their terms In gold and bearing interest
might within ten days be substituted at
par for the four per cent. bonds described
in the agreement.
Thinks Disaster Was Averted.
On the day this contract was made its
terms were communicated to congress by
a special executive message, in which It
was stated that more than $4,000 eco would
be saved to the government IL collaborating
authorized to be substituted for those men
toned in the contract. The congress hav-
ing declined to. grant the necessary author
modified, was carried out, resulting in a
gold reserve amounting to S1O1 81 $50 on the
9Th day of July, 1895. The performance of
this contract not only restored the reserve.
but checked for n time the withdrawals of
gold and brought on period of restored
confidence and such peace and quiet in
sible value to every interest that affects
our people. l have never had the slightest
misgiving concerning the wisdom or pro
prtety Of this arrangement, and am quite
willing to answer for my full share of re-
sponsibility for its promotion. believe 1t
averted a disaster. the imminence OF which
was fortunately not at the time generally
understood by our people.
Good Results Not Permanent.
Though the contract mentioned stayed
for a time the tide of gold Withdrawal. Its
good results could not be permanent Re-
cent Withdrawals have rduced the reserve
from $lO7, ST.. 230 on the Sth day of July,
1895, to s79,S3S.966. How long it will remain
large enough to render It's increase unnec-
eSsary is only matter of conjecture, though
quite large Withdrawals for shipment In
the Immediate future are predicted in we'll
Informed quarters. About $16,000,G00 has
I.nay will ,sly oyxyv, IF
Situation Still Critical.
The foregoing statement of events and
conditions develops the fact that after in
debtedness more than $lG2,ooo;0OO to save
our gold reserve, we are nearly where we
s as sa afans noy in
Though the amount of gold drawn from,
Re and Ge
presented. 1t actually was much larger,
Considerable sums having been acquired
sy ns Se Of
on the 2Sth of January. 1926 1t was re-
ported by the secretary of the treasury
that more than sl7s o9o,oeo Of geld had been
that tia from January i. iS79. to July IA. 1890,
over err 5000. 900 was Withdrawn. and that
between July IA. 1880, the date OF the pas
sage of the law for an increased purchase
of silver. and the 1st day of December. 1895,
withdrawn nearly 1915 COG. COO, making total
of more than s4O3. GOO drawn from the
treasury in gold since January l, 1879 the
date fixed in 1875 for the retirement of the
United States notes. Nearly s327,00O,G00 OF
the gold thus Withdrawn has been paid out
on these United States notes: and yet every
one of the ss46. 900 is still uncanceled and
ready to do service in future gold deple-
lions. More than s76.C0O,0OO in gold has
,1t.. kt~,1 t,>1 HOO, 4
from the treasury upon the notes given or
the. purchase of silver by the government
and yet the whole, amounting to sl55, O0o, goo
except little more than s16,000,G00 which
have been retired by exchanges for silver
at the request of the holders. remains out
standing and prepared to join their Older
| and more experienced allies in future raids
upon the treasury's gold reserve.
In other words, the government has pait
| in gold more than nine-tenths OF its United
States notes and still owes them all. 1t has
| paid in. gold about one-half of its note
given for silver purchases without ex
tinguishing by such payment one dollar o
| these notes When added to all this we arr
reminded that to carry on this astounding
| financial scheme the government has in
| CURED n bonded Indebtedness of $95. 500 90
in establishing gold reserve. and of sl62.
$1,000 in efforts to maintain it; that the an
nual interest charge, on such bonded in
| debtedness is more than s11. 100000: that {
| continuance In our present course may re
suit In further bond issues, and that We
| have suffered or are threatened with al
this for the sake of supplying gold for for
eign shipment OF. facilitating it's boarding
at home. situation is exhibited which Ger
| tainly ought to arrest attention and pro
woke immediate legislative relief.
Notes Should l,c Retired.
! am convinced the only thorough ant
practicable remedy for our troubles 1.
of our United States notes, commonl,
called Ereenbaclls, and the outstanding
treasury notes issued by the government
n1pc a. y,
act of 1880. believe this could be quite
readily accomplished by the exchange o
these a notes ST for United States bonds o
bearing low rate Of interest. They SHOULD
be long.term bonds. thus increasing thei
desirahllity as Investments. and because
their payment could be well postponed t,
a period far removed from present tinan
cial burdens and perplexities. when will
increased prosperity and resources they
| would be more easily met. To further in
sure the cancellation of these notes ant
also provide u way by which gold may b.
added to our currency In lieu of them, {
feature In the plan should be an authorit,
given to the secretary of the treasury t.
dispose Of the bonds abroad for gold i
necessary to complete the contemplated
redemption and cancellation, permitting
| him to use the proceeds of such bonds tt
| take up and cancel any of the notes tina
may be In the treasury or that may be re
celVed by the government on any account
| Would Restore Confidence.
| The increase of our bonded debt in
| volved in this plan would be amply com
pensated by renewed activity and enter
| confidence at home. the reinstated faitl
in our monetary strength abroad, and TIL
stimulation OF every interest and industr
| gold-demand obligations now afflicting us
In any event, the bonds proposed woul
stand for the extinguishment of trouble
now follow there turks the menace of un
ending bonds. with our Indebtedness still
undischarged and aggravated in ever:
| feature. The obligations necessary t.
| fund this Indebtedness would not equal Il
amount those from which we have been re
lieved since 1854 by anticipation and pay
1 sinking fund out OF our surplus revenues
How to Fill tho Void.
The currency withdrawn by the retire
ment of the United States notes and treas
ury notes, amounting to probably les
gold as would be used on their retiremen
or by an increase In the circulation of on
national banks. Though. the agsregat
to more 1864 900 ,O0O their outstanding cir
culation, based on bond security, amount
to only about s190,0CO,C0o. They are author
cent. of the bonds deposited to secure thei
circulation. but in no event beyond tn
amount Of their capital stock, and the
are Obliged to pay one per cent. tax on til
circulation they issue.
i I think they should be allowed to issu
circulation equal to the par value of tn
bonds they deposit to secure 1T. and tha
the tax on their circulation should be re
duced to one-fourth of one per cent, whic
would undoubtedly meet all the eXpens
In addition, they should be allowed to sui
stttute or deposit in lieu of the bonds no,
required as security for their circulate
pose of retiring the United States note
| and treasury notes The banks already es
isting. If they desired to avail themsslye
could issue circulation in addition to tina
already outstanding. amounting to s47s
CoOooO. which would nearly or quite equs
any rate. 1 should confidently expect t
see the existing national banks or others
DOSCd encOura n Issue circNla 10