Semi=weekly graphic., 1895-12-04


from th TREASURY on l,1nand upon nite ntes
ury demand draw gold nom tn people upon
amazement And oven If This could be done there Is
nothing TO prevent thess ths parting wta heiI gold
the presentation Of the notes. they received in eS-
change or ~ me seeietail Of ths treasury Rght use
such notes taken ifel snilas isRenne a. Ia geld IN
the market. or eouiee he ronld not do this without
be restialned from making the host barein possible
when they furnished gold 10 the treasury. Eut the
moment the secretary OF the tft asury pht gold on
universal ~ emium upon IT, thus BIZ aising down lie
parity between gold aud silver, which the government
Is pledged to maintain and opening the way to new
and sorions complications
IN the meantime the premium would remein sta,
toaesy md ne ebsprd spectacle Eisht be presented
% dealer selling gold To the government, and with
mo,aatey csmcring FOR It's return anu n rr,,e a
mgaei pfsm1nni ltlna{ De CANNED mat lalss iey
situation under discussion by afiofdinR opportunity
ofrotanns these notes in the treasury when received
and thus preventing tlpir presentation far gold sge
retention to be useful ought 70 De at least easuraby
permanent and this "a precisely what Is preiibited 50
far as United states notes ae concerned Nv the law of
ute in many words provides that thest notes when
received into the treasury and belonging Go the United
could not refuse to pay anf tinted STAT nof ami
treasury notes in current transactions when demanded
and Insist on paying out silver alone and s maintain
the parity between that metal and currency represent
Ing gold Besides the accumulation ia tie treasury Of
currency Of any kind eNaettd from the people through
proceed far without vigorous protest against unJus
country and denunoiation OF scheme taxation
which proves tsef to be unjust when it takes from the
earnings and income OF the citizen money SO much ia
OF the neoda of the governments support that
ury such a condition has heretofore In times OF SUR
plus revenue led the government TO restore currency
to the people by the purchase of Its unmatured bonds
at large premium aud by largo increase OF its de
posits in national banks and easily remember thai
the abuse OF treasury accumulation hats matured a
most persuasive argument IN favor Of legislation radt
metai @ mney the w9na a ean
inry exhaustion And yet all through struggles 90
apprehension to our ready ability pay our way
with such money q we haf and the question whether
not entered into the estimate of orr solyency. OF
gold was entirely immateriai TO The foreign creditor
and investor His debt could only be paid in gold and
his only concern was our ability 70 keep that Kind
On July l, 1891, than year and a half be
fore the first bonds were issued 20 iepenish the
gold reserve, there net balance In the treas
ury exclusive OF such reserve, of less than U0O
000 but the gold reserve amounted 20 more than
81 coo ena which was the quitting feature of the
situation II was when the stock of gold began
rapidly to fall that fright superyened and every
security held abroad was returned for sale and
debts owed abroad wore pressed for payment. In
the meantime extensive shipments of gold and
other unfavorable Indications caused reeessions of
fright among ouf people at home. Therenpon the
general state of our funds, exclusive of gold be-
came also immaterlnl to them and they too drew
gold from the treasury for boarding aganst 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 incidents progressed.
During the fiscal year ending June 30, 1921
nearly Ss5,00O,000 In gold was withdrawn from the
treasury and about s77000O00 was sent abroad
while during the fiscal year ending June 30, 1895,
over $ll7000000 was drawn out OF which $685. O00
was shipped leaving large balance of such with
drawals 70 be accounted for by domestic boarding.
1nasmuch as the withdrawal of our gold has re-
suited largely from fright. there is nothing appar
ent that viii prevent It's continuance reoccur-
renee, with its natural consequences except such
a change In our financial methods viii reassure
the frightened and make the desire for gold loss
Intrinsic IL is not clear how an increase In rev
gold
whose only anxiety Is TO gain gold from the gov
rely upon increased revenues cure for our
present troubles. 1t is possible that the sugges-
tton of Increased revenue as a remedy for the df-
heultles we are considering may have originated
In an tntimation Or distinct allegation that the
bonds which have been issued ostensibly to re-
pIensh our gold were really issued to sup
ply insufficient revenue Nothing can be further
from the truth Bonds were issued 10 obtain eold
for the maintenance of cur national credit. As
has been shown, the gold thus obtained has been
notes'and treasury notes. This operation would
have been promptly prevented II possible, but
these notes having thus been passed to the trens-
ury, they become the money of the government
like any other ordinary government bonds 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 condition of the question Of paying
the expenses OF the government with their pro-
ceeds. There was no necessity To consider that
question, At the time of each bond issue had
. safe surplus In the treasury for ordinary opera
lions exclusive of the gold In reserve In
February, 1894, when the first issue of bonds was
November When the second issue made 1t
amounted to more than %2,000,000 and In Febru-
AIRY, 1895 when bonds for the third time we're is
sned, suoh surplus amounted to more than $780,
100000, II now amounts to s96,0,2,420.50
Besides NIL this, the secretary Of the treasury
had no authority whatever to issue bonds to in
crease the ordinary revenues pay current ex-
penses. cannot but think there has been some
confusion of Ideas regarding the effects OF the issue
OF bonds and the results OF She withdrawal of
golu IL was the latter process ana not the former
that by substituting In the treasury United States
treasury Increased
their amount the money which in the first In
stance subject to ordinary government expendi-
ture, Although the law compelling an Increased
~ S q 81 wy Z. ~ .sses
gold from the treasury upon the notes given in
payment on such purchases did not begin until
october 1871. Immediately following that dato
the Withdrawals upon both these notes and United
states notes Increased very largely ana have con
tinued TO such extent that since the passage OF
that law there has been more than thirteen times
as 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 e-half gears Immediately prior
thereto and after the std3y ofJunuary, 1879 when
specie payments were resumed.
1t neither unfair nor unjust to charge large
share OF our present financial perpexites and
dangers TO the operation of the laws OF 1873 and
1870, compelling the purchase of silver by the gov
ernnent, which not only furnished a new treasury
obligation upon which its gold could be withdraw
but SO increased the fear 81 Overwhelming
HOOD OF sily5f and forced Gzscent to silver pay
ments that even the repeal OF these laws did not
entirely cure the evils Of their existence While
have endeavored to make n plain staleIeen of tie
disordered condition Of our currency and the pres
ent dangers menHeng our prosperity aud to slR-
gest way which leads TO a safer financial system
have constantly borne in mind the fact that nuuy
OF my country whose sincerity do not doubt |
insist that TO cure the Ills threatening us NAV
be found IN the single and simple remedy Of the |
free coinage of silver. They contend Tint our |
mints shall at once be throw, m omen q ff |
unlimited and Independent coinage Of both gold
ana silver and in full view of the fact that the
Fatlo between tho metals which they suggest calls
Tor leO cents worth Of gold In the gold dollar at tire
present standard and only nifty cents worth OF all
Yer Ia the silver dollar We're there Infinitely
stronger reasons than can be addneed foe hoping
currency moving on lines of parity an experfment |
50 novel and hazardous that proposed might |
wei stnggef those who believe thai stability is an
Imperative condition of sound money No Qoy- |
ernnent, no human e0ntrlyanee or act OF ieaisia
ton has ever been able to hold the two metals to-
gcther In free coinage at ra.iO apprcciaby diuef-
ent from that which Is established In the markets
OF tile world.
Those who believe that our independent free
coinage OF silver ut an artificial ratio OF gold OF is
TO would restore the parity between the metals |
ana consequently oppose an unsupported ana inn
probable theory to the general belief and practics
OF other nations and to the teaching ana wishes |
the statesmen and economists OF the world both |
IN the past ana present and what Is far more con-
cluslye they counter TO our own actual exp,s-
rienees Twice in Our earlier history ilw-niast.-
efs, IN attempting to establish timetable eut-
rency, undertook free coinage uponia ratio which
accidentally varied from the actual relative value
OF the two metals not more than three per cent |
IN both cases. notwithstanding greater difficulties
and cost of transportation than now exists tire |
the ratio gradually and surely Disappeared from |
circulation and went to other countries
where their value was better recognized. Acts Oh
congress were lmpOteut to create equality where
natural causes derived slight euual.v
Twice in our recent history have sgnally failed
TO raise by legislation the value Of silver.
Under an net or congress passed in 1873 the gov
eminent required for more than twelve Years
TO expend annually az least s24DO0O00 in the pur-