The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1895-12-04
for the redemption OF the outstanding
United States notes.

for the redemption OF the outstanding
United States notes.
This fund together with such other
gold as might be from time to time in
the Treasury available for the same
purpose has been since called our gold
reserve, and 500. 600, 600 has been re-.
gerded rs an adequate amount to ac-
complish its object. This fund
amounted on the 1ss day OF January,
1879, to Sll4,l 1913 $50, and though there
after constantly f%iuctuating it did not
fall below that sum until July, 1899. In
April, 1898, for the first time since it's
establishment, this reserve amounted
to less Than Sloo. 600. 600. containing at
that date only S9LOI1. $40. In the mean
time and in July, 1890. an act had been
passed directing larger governmental
monthly purchases of silver than had
been required under previous laws and
providing that in payment for such
silver treasury notes Of the United
States should BIZ issued payable on de-
mand In gold or silver coin at the dis
erection OF the Secretary OF the Treas
urv.
IL was, however, declared in the act
to be The established policy Of the
United States to maintain the two met
ais on q parity with esch other upon the
present legal ratio, or such ratio as NAV
be provided by law" In view OF this
declaration 1t was not deemed permiss-
aole for the Secretary Of the Treasury
10 exercise the discretion in terms con-
TERED on him by refusing to pay gold on
these notes when demanded, because by
suoh determination in favor Of the gold
oollar the soscalled parity of the two
metals would be destroyed, and grave
and dangerous consequences would be
trecipisated by affirming or accentuating
the constant disparity between their &C
eual values under the existing ratio.
IL thus resulted that the Treasury notes
issued in payment of silver purchases
under the law OF 1890 were necessarily
treated as gold obligations a. the option
of the holder.
These notes, on the 1st day of No
VEN Der, 1893, when the law compelling
the monthly purchase of silver was re-
pealed amounted TO more than $685.
600, 600. The notes of this description
are now outstanding, added to the liza.
oillties oited States, still undi-
minished by redemption or cancellation,
constitute a volume Il gold obligations
amounting to nearly S5UO. 600. 900. These
obligations are the Instruments which,
ever since we AVE had q gold reserve,
~ ooCo w o6pl6I6 IL. lul5 re-
serve, as has been stated, has fallen in
April, 1893, to S97. OIL, $40. 1t has from
that time to the present, with very few
and un1mportant upward movements,
steadily decreased, except as 1T has been
temporarily replenished by the sale of
bonds.
Fault of the nc Kinley Tariff.
Among the auses for constant and
uniform s%hrinksge in this fund NAV be
mentioned the great falling of Of ex-
ports under the operation of the tariff
law until recently In force. which Drip
pied our exchange of commodities with
foreign nations and necessttated to some
extent the payment Of our oes in
gold; the unnatural infusion OF silver
Into our currency and the increasing
agitation for It's free and unlimited
coinage, which has created auprehen-
sion as to our disposition or ability to
continue gold payments; the conseo uent
boarding OF gold at home and the stop.
page OF Investments Of foreign capital
as we'll as the return of our securities
already sold abroad, and the high rate
OF foreign exchange which induced the
shipment OF our gold to be drawn
against, as a matter of speculation.
In consequence of these conditions
the gold reserve on the 1st day Of Feb
ruary, 1894, was reduced to S65, ABS, 377,
having lost more than S3t ,OOO, 900 dur
Ing the preceding nine months, or since
April, 1893.
The Bond Issue.
Its replenishments being necessary
and no other manner of accomplishing
1t being possible. resort was had to the
issue and sale of bonds provided for by
the resumption act Of 1875. Fifty mill
lions of these bonds were sold, yielding
S5S,633, 295 II, which was added to the
reserve fund OF gold then on hand. AS
q result of this operation this reserve,
which III suffered constant and large
Withdrawals In the meantime. stood on
the 9Th day of march, 1894, at the sum
OF Sl07, 446. 500. Its depletion was, how.
ever, Immediately thereafter go &C.
celebrated that on the 3O.h day OF June.
1894, 1t had fallen to S64 ,S73, OPS, TINS
losing by Withdrawals more than
Sf2, 600, 600 in five months and dropping
slightly below it's situation, when the
sale OF $50, 600. 600 in bonds wal effected
.or Its replenishment.
Ihis depressed condition grew worse
and on the Gath day Of November.
1894, our gold reserve was reduced to
S57, 669, 7Oi, and 1t became necessary to
again strengthen it. This was done by
another GALE of bonds, amounting to
$50, 600, 600. from which there was real
lad S5S ,538 500, with which the fund
was increased TO Sill. 143, OIL on the 4th
day CT December. 1894.
Again disappointment awaited the
anxious hope for relief. There was not
even a lull in the exasperating with
drawals of gold. On the contrary they
grew larger and larger and more per-
sistant than ever. Between she 4.h day
OF December, 1894, and early in Feb