Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1895-12-07

stant and uniform shrlnkage In this fund may
bs mentioned the failing OF OF exports under
the operation OF the tariff law until recently In
force. which crippled our exchange OF COM
modtles with foreign nations and necessitatod
TO some extent the payment OF our balances In
gold tho unnatural infusion OF silver Into our
currency and tho increase In agitation
for Its free and unlimited coinage
which have created apprehension rs TO our dis
position or ability to continue gold payments,
tho consequent boarding OF gold ut homo and
the stoppagc OF Investments OF foreign capital
Us well aS the return Of our securities already
sold abroad and the high rate Of foreign cx-
change. which induce the shipment OF our gold
TO be drawn against US rs matter OF spccu!n-
tion. In consequence OF these conditions tho
gold reserve on the LIST day OF February. 1894,
was REDUCED to s65.43s,3s7. having lost more
than s3iOI,0n during the preceding nlnc
months. or since April, 1904 Its replenishment
being necessary and no other manner OF nc
compllshlng It being possible. resort was
had to the issue and sale Of bonds pro-
vided for by the resumption act OF ls'a
Fifty millions OF these bonds were sold. yield
Ing 1853, t33, ee5.7i, which was added TO the re-
serve fund OF gold then on hand. As result
Of this operation this reserve. which had suf-
fered constant and large Withdrawals In the
meantime, stood on the 9th day Of March, 1891.
ut the sum OF si0', tiss).. Its depletion was.
however, Immediately thereafter so accelerated
that on the 18th day OF June. 1897. II had fallen
to di.s73,Gej, thus losing by Withdrawals moro
than ~. 0o,D0 In i've months and dropping
slightly below this situation when tho sale OF
SO, 900 In bonds was c.fectcd for Its redemp-
ton. This depressed condition grew worse.
ind on the sJth day OF November, 1871,
our gold reserve was drained to 81 d9.0l.
q Ia. uN.
This was done BY another sale Of bonds
amounting to is0,0)l010, from which there was
realized 81, s3s $40 with which the fund was In
creased to siii.0i.,0,t on the ith day OF De-
cembcr. 1891 Ags.n disappointment awaited
the anxious hope for relief There was not
even lull In the cxaspcrating Withdrawals OF
gold. On the contrary. they grew larger ana
more persistent than ever. Between the Ath
day OF December, 1891, and carly In Fcbr unry,
is9,, q period OF scarcely more than two
months after the second reinforcement OF our
gold reserve by the sale OF bonds !. had lost
by such withdrawals more than Sjo,0O.0Jo, and
had fallen to 81 .o3l,lsi Nearly si3,o0O,O had
been withdrawn within the month Immediately
preceding this situation.
In this emergency, and in view OF ITS SUR
rounding pc.plcxity. II became entirely appir-
cnt to those upon whom the struggle for safety
was uCNO.fCu VuiN tuib ohA Npiu fN'S' "
must. for the third time In less than thirteen
months. be restored by another issue and sale
Of bonds, bearing rate Of interest and badly
suited 10 their purpose. but that plan must
be adopted for their disposition promising bet
ter results than realized on the previous sales.
An agreement, therefore, WAS made with o
number Of flnanclcrs and bankers whereby
IL was stipulated that bonds de-
scribed in the resumption act OF 1875
payable In coin thirty years after their date,
bearing Interest, ut the rate OF 4 per cent per
annum and amounting TO about ;C!.W).aO
should be exchanged for gold. receivable By
weight. amounting to little more than sS.-
10000. Its good results could not be pcrInn-
ncnt. Recent Withdrawals have reduced the
reserve from si0' 57i 80 on the 9Th day OF July
1875. to s,g.3Is91
On the .sih Of January. 1897, 1t was reported
by the secretary OF the treasury that moro
than .i..,OC0.O1) Of the gold had been with
drawn for boarding or shipment during the
year preceding. lie now reports that from
January !. is1D. TO July .. 1897. period OF
more than eleven years. only little over ss,-
O0D.OD was withdrawn. and that between July
H. 1897, the date OF the passage OF the law for
an increased purchase Of silver. and tho LIST
day OF December. is9i. OF within less than five
and half years. there was withdrawn nearly
s3'5, 0Oc 90. making total OF more than s413.-
0p.OO0 drawn from the treasury gold since
January |. 1870. the date fixed In 1875 for the
retirement OF the United States notes.
Nearly 81. o0J.000 OF the gold thus withdrawn
has been paid out on these United States notes,
and yet every one Of the sl6pOD.O0J Is still I'M
Cancelled and ready % do service in future
gold depietions. In other words, the govern
mcnt has paid In gold more than nInc-tcnths
OF Its United States notes and still owes them
all II has paid In gold about oue-half OF Its
notes given for silver purchases without OK
tingulshing b. such payment 81 OF these notes.
And added To all this We are reminded that to
carry out this astounding financial system the
government has incurred bonded indebted
ness OF :gi. 'OlO0J In establishing gold reserve
and OF siG,.3iS.i0l In efforts TO maintain It.
an convinced the only thorough and prac-
tlcable remedy for our troubles is found In tho
retirement and cancellation OF our United
States notes, commonly called grecnbacks and
the outstanding treasury notes issued by the
government In payment OF silver purchased
under the net OF 1902.
The currency withdrawn by the retirement
OF the United states notes and treasury notes
amounting to probably less than Sd,OOO.0O
might be supplied by such gold MS would be
usci on their retirement or by IN increase In
the circulation OF our national banks Though
the aggregate capital OF these now In existence
amounts 10 more than :66j.0Ol,0J). their out
standing circulation based on bond security
amounts TO only about si9l00o0)O.
think they ought to lie allowed to issue cir
cuation equal to the par value Of the bonds
they deposit to secure It. and that tho tax on
their circulation should be reduced 10 Y Of per
cent. which would undoubtedly meet all the
expenses the government incurs on their nc.
count. do not overlook the fact that the can
collation. OF the treasury notes issued under
the silver purchasing nct OF iso1 would leave
the treasury In the actual ownership OF sum.
cient silver, including seignio-age to coin
nearly siTs.0 i0,oo0 In standard dollars. 1t Is
worthy OF consideration whether this might
not, from time TO time be converted into dol
lars or fractional coin and slowly put into cir.
culatlon.
In tho present stage OF our Ill ficulty IL Is
not easy TO understand how the amount Of Out
revenue receipts directly Affects IT, The i'm
portant question Is not the quantity OF money
received In revenue payments. but the kind OF
money We maintain and our ability to contiEuc
In sound financial conditions We are consid-
erlng the government holding OF gold as re-
lated to the soundncSs OF our money and rs af'
fectlng our national credit and monetary
strength. II our gold reserve bad never beer
impaired. III no OOuuS uhu Dtcu iSoutu " ft-
plenish; II there had been no fear and
timidity concerning our ability to continue
gold payment; II any part OF oui
revenues were now paid In gold
and II we could look to our gold receipts Us q
means OF maintaining q safe reserve. tho
amount OF our revenues would DO an infiuen'
tial factor In tho problem. But unfortunately
NIL the circumstances that might lend weight
to this consideration are entirely lacking. II
our present predlcament no gold is received bJ
the government In payment OF revenue charges
nor would there DO II the revenues were In
creased. The receipts OF the treasury wher
not In silver certificates consist OF United
States notes and treasury notes. issued for sill
yer purchases. These forms OF money are only
useful to the government in paying Its cur
rent ordinary expenses and its quantity
In government possession does not In the
least contribute toward giving us tho kind OF
safe financial standing or condition which Is
built on gold alone Hit is said that these
notes II held by the government can be used
10 obtain gold for our reserve. the answer Is
easy. The people draw gold from the treas
ury on demand upon United States notes, but
the proposition that the treasury can on de-
,,.o "a 49, erotd from thu MANILA unan lh01n