The citizen. (Frederick City, Md.) 1895-1923, 1895-12-06

ever, Immediately thereafter CO
rated that on the both dav Of I I
1894, it had fallen to S64. s73 nos S sne
losing by Withdrawals more tbaa nus
ooo'ooo IN five months and dropnin,
slightly below it's situation VIII pp,ls
sale OF $50 100000 in bonds was e4sa Sue
ed for its replenishment. Tb;a ee'-
pressed condition grew worso ue,
on the oath day of November $50, ala
gold reserve being reduced to s5- ecu eur
FOL, it became necessary To ar ,D9''
strengthen it. This was done h..
other sale of bonds amounting - ss an
100000, from which there was roo':
S5s,53s, 500, with which the f ,na
increased to Sill, LAP, O21 on the 4tb se
of December, 1894. Again disanno:~y
ment awaited the anxious hone a.,
lief. There was not even a lull il ~
exasperating Withdrawals of gold os
the contrary, they grew larger az
more persistent than ever. BetwoaN
the 4th day of December, 1894 AZ
early in February, 1895, a period :.
scarcely more than two months -
the second reinforcement of opr ~,
reserve by 1.-The sale of bonds. it badIoo.
by such Withdrawals more than SEQ
100000, and had fallen to Sal 4o10,
Nearly SAB. 100000 had been Withdraw.
within the month Immediately nracoa
ing this situation. In anticipation q,
impending trouble, had on the 9s.h
day of January. 1895. addressed com
municati ton to Congress fully sett;n.
forth our difficulties and dangerous ~
sition, and earnestly recommendin,
that authority be given the Secretarn
of the Treasury to issue bonds bearir.
low rate Of interest, payable BY tbei,
terms in gold for the purpose Of main.
tanning sufficient gold reserve. and
also for the redemption and cancep..
ton of outstanding United States nots,
and the Treasury notes issued for fl.
purchas of silver under the law of 1sao
This recommendation did not, how.
ever, meet with Legislative approval
Situation Critical
In February, 1895, therefore, the st.
uation was exceedingly critical With
a reserve perilously low ard refusal o,
congressional aid, everything indicated
that the end of gold payments by tie
government was imminent The "a.
suits of prior bond issues had been ex.
ceedingly unsatisfactory, and the large
Withdrawals of gold immediately sue
ceeding their public sale in open market
gave rise to a reasonable suspicion that
a large part of the gold paid into the
treasury upon such sales was promptly
drawn out again by the presentation Of
United States notes or treasury notes
and found its way to the hands Of
those who had only temporarily parted
with it in the purchase of bonds. In
this emergency, and in view of its
surrounding perplexities, it became en-.
tirely apparent to those upon whom the
struggle for safety was devolved not
only that our gold reserve must, for the
third time in less than thirteen months,
be restored by another issue and sale Of
bonds bearing high rate of interest
and badly suited to the purpose, but
that plan must be adopted for theirdis.
position promising better results than
those realized on previous sales. An
agreement was therefore made with a
number of financiers and bankers
whereby it was stipulated that bonds
described in the resumption act
of 1875, payable in coin thirty year after
their date, bearing interest at the rate
of four per cent. per annum, and
amounting to about s62, 900, 600 should
be exchanged for gold, receivable by
weight, amounting to little more
than $4,000, 900. This gold was to
be delivered in such installments as
would complete its delivery within SIX
months from the date of the contract,
and at least one-half of the amount
was to be furnished from abroad. 1t
was also agreed by those supplying
this gold that during the continuance
of the contract they would by every
means in their power protect the gov.
ernment against gold Withdrawals
The contract also provided that if con-
gress would authorize their issue, bonds
payable by their terms in gold and
bearing interest at the rate of thra
per cent. per annum might within ten
days be substituted at par for the four
per cent. bonds described in the agree
ment. On the day this contract was
made its terms were communicated TO
congress by a special executive mes.
sage, in which it was stated that mure
than sixteen million dollars would DO
saved to the government if gold bofdi
bearing three per cent. interest were
authorized to be substituted for thoss
mentioned in the contract. The con-
gress having declined to grant Tho
necessary authority to secure this saw
ing, the contract, unmodified, was car
ried out, resulting in a gold reserve
amounting to $1O7 ,571, $50 on the Ssa
day Of July, 1895. The performances
this contract not only restored the "
serve, but checked for time the wl.l'
drawals of gold and brought on perl0a
OF restored confidence and such peac:
and quiet in business circles as were@
the greatest possible value to everyn u
terest that effects our people. l ha''
never had the slightest misgiving Con-.
corning the wisdom or propriety Of u.
arrangement, and am quite willing "
answer for my full share of respons
bility for its promotion. l believe y
averted disaster the imminence =.
which was, fortunately, not at the Vi''
generally understood by our peopi"