The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1895-12-03

period. It will be seen by a reference to the
debates in congress at the tlmo laws were
passed authorizing the issue of these notes
that their advocates declared they were in
tended for only temporary use and to meet the
emergency of war. In almost, If not all, the
laws relating to them, some provision was
made contemplating their voluntary or COM
pulsory retirement. large quantity of them,
however. were kept on foot and mingled with
the currency of tho country, SO that at the
close of the yoar 1874 they amounted to $751;
999,O7a Immediately after that date and in
January,1 law was passed providing for
the Il ton of specie payment BY
was required, whenever additional circu-
lation issued to National banks,
to retire United States notes in equal amount
to ~ per cent of such additional National bank
circulation until such notes were reduced to
S300,OJO,O0O. This law further provides that on
and after the last day of January, 1879, the
United States notes then outstanding, should
be redeemed in coin, and in order to provide
and prepare for such redemption the secretary
OF the treasury was authorized not only to use
any surplus revenues of the government, but to
issue bonds of the United States and dispose of
them for coin and to use the proceeds for the
purposes contemplated by the statute.
In May, 1878, and before the date thus ap-
pointed for the redemption and retirement of
these notes, another statute was passed for
bidding their further cancellation and retire.
ment. Some of them had, however, been pre-
vlously redeemed and cancelled upon the issue
of additional national bank circulation. as per
mitted by the law of 1875. so that the amount
outstanding at the time of the passage of the
act forbidding their further retirement was
Sl0,6Sl,0l6. The law of 1873 did not stop at dis
tinct prohibition but contained in addition
the following provision, And when any
of said notes may be redeemed or
be received into the treasury under
any law, from any source whatever, and
shall belong tn the United States, theys hall not
be letir"l. cancelled, or destroyed. but they
shall be re-issued and paid out again and kept
IN circulation" This was the conditl on OF az
fairs an the LIST day Of January, 1879, which had
been hxcd upon four years before the date
for enter upon the redemption and retire
Inent of all these notes, nd Tor which such
abundant means had been provided The gov
eminent was put in the anomalous situation or
owing to the holders OF its notes, debts payable
In gold on demand which could nell her be re-
tlred by receiving such notes in discharge OF
obligations due the government not cancelled by
actual payment in gold. 1t was forced to re-
deem without redemption and to pay without
acQuittance.
There has been issued and sold S95, 500 900 of
the bonds author Zed by the resumption act OF
ISIS, the proceeds of which, together with other
gold in the treasury create a gold fund deemed
sufficient to meet the demands which might be
made upon it for the redemption of the out
standing United States notes. This fund.- to-
gather with other gold might DO from
time to time in tho treasury Bile for the
same purpose, has been since called gold
reserve and $40 0I000 has been regarded as
adequate amount to accomplish Its object
This fund amounted on the LIST day of January.
Is79, to SIl4,IgG, IS6 and though thereafter con-
stantly fuctuatiug, it did not fall below that
sum in July, 1892 In April, 1898, for the first
tIns since its establishment this reserve
amounted to less than Si0O,900,00 con tanning
at that late only SIT ,33I-
The Bond Contract
The message reviews at great length tho low
cring of the Id reserve, the shipment of gold,
the issuing of bonds, the entering into the bond
contract with capitalists and his messages 10
Congress for relief. Continuing the President
says:
The Congress having declined to grant the
necessary authority to secure this saving the
contract unnodified was carried out, resulting
IN gold reserve amounting to S1O7 ,S7l ,25O on
tho Sth day of July, 1895. The performance of
this contract not ouly restored the reserve but
check ed for time the Withdrawals of gold and
brought Oh period of restored confidence and
such peace and quiet business circles as
were of the greatest possible value to every in
terest that affects our people. have never had
the slightest niSgIVlng concerning the wisdom
or propriety OF this arrangement. and quite
willing to answer for my full share of RESPONSE
biIty for its promotion.
believe it avertod disaster. the inminence
of which is fortunately not at this time gener-
ally undcrs TODD by our people Though the
contra t mentioned stayed for u time the tide
of gold Withdrawal. its good results could not
| be permanent Recent Withdrawals have re-
duccd the reserve from $l07, 511,2i0 on the eth
day of July, 1895, to S7a, 49,, 9IG. How long it
will remain large enough to render it's increase
unnecessary is only matter of conjecture,
though quite large Withdrawals for shipment
in the immediate future arc predicted in well
in formed quarters About S16,OOJO00 has
been withdrawn during the month of November
The foregoing statement of events and condi-
tions develop the fact that after increasing our
interest bearing bonded Indebtedness more
than $162 ,oUO 0O0 to gold reserve. we
a "a VHO ST rfn h1v TFtev
such reserve SO 3339S0 as against $50 43s ST. in
February 1894 when the first bonds were issued
Though the amount of gold drawn from the
| treasury appears to be very large, gathered
| from the facts and figures herein present it
actually was much larger. considerable sums
having been acquired by the treasury within
the several periods stated without the issue of
| bonds.
| On the 18th of January, 1895, it was reported
by the secretary of the treasury that more than
! s172,Go0,000 of gold had been withdrawn for
boarding or shipment during the year pre-
ceeding. He now reports that from January /,
1879, to July Is, 1880, period of more than 10
years, only a little over $2SO0O 600 was with
| drawn and that between July H. $780, the date
of the passage OF the law for an increased pur-
chase of silver and the first day of December,
/ 1872, or within less than five and a half years,
there was withdrawn nearly $375 600, 900,
making the total of more than $4O3, 0Oo, 600
| drawn from the treasury in gold since January
1st.. 1879 the date fixed in 1873 for the retire
ment of tho United States notes
Nearly S527, )05, 900 of the gold thus withdrawn
| have been paid out on these United States
notes, and yet every one of the $4,000 00j is
still uncanccllcd and ready to do service in fu-
ture gold dcpletioas. More than $1,000 90 in
| gold has since their creation in Is been paid
| out from the treasury upon the notes given on
| the purchase of silver by the government;
and yet the whole, amounting to S15j ,O00, 900
except little more than $5, oJ1 600 which have
been retired by exchanges for silver at the re-
quest of the holders, remain outstanding and
prepared to join their older and more ex-
perienced allies in future raids upon the treas
ury's gold serve
Retirement of Treasury Notes.
In other words, tho govern ent has paid in
gold more than nine-tenths OF its United States
notes aud still owes then all It has paid in
gol / about one-h@If of its notes given for
silver purchases without extinguishing by such
payment one dollar of these notes And added
/ to all this are reminded that to carry on