Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1895-12-05

that American SelI-relnnce, THRIFT ana lnRe-
nuity can build up our countrys industries and
develop its resources more surely than ener-
waiting paternalism The compu sorry purchase
and coinage of silver by the government, I'M
checked and unregulated by business condi-
lions and needless OF our currency needs.
which for more than fifteen yea
diluted our circulating medium, under
mined confidence abroad In our financial
ability and at last eliminated In distress and
panic at home has been recently stopped by
the repeal OF the laws which forced this reck-
less scheme upon the country. The things
thus accomplished, Notwithstanding their
extreme Importance and benetlcent effects,
fell far short Of curing the monetary evils from
which we suffer as q result OF long indulgence
in i'll d vised financial expedients. The cur
rcncy denominated United States notes and
commonly known as greenbacks was issued in
large volume during the late civil war AMI IN
tended originally to meet the emergencies OF
that period.
II will be seen by refer .nce to the debates
in congress ut the time laws were passed au-
thoriZing the issue OF these notes that their
advocates do3 AIRED they were intended 70 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 vo untary or compulsory retirement A
irgc quantity OF them, however, were kept OIL
foot an mingled win the curr nov of the
country, 50 that at the cOSe OF the year 1914
they amounted 10 53Il,9J9,07 Ipme lately
after tnat date and in Jllulry. 1877, u law was
passed providing for the resumption OF specie
pigment, By WHICH the secret ~ OF the treas
ury WIS required, whenever additional
circulation was iSslod t. national banks
to reti United States note' equal ia amount
TO 81 uer cent OF such additional national
,,I- pf, nttlo t1ptH Ta-
duccd tn f3lLOWOm. This law further pro-
vided talt olalla'tir tl3 trS5 ly OF Gtlu-
airy, 1879, tn Unt5el StlteS mites thea OUT
stan ling Shout b redeemed in CON, al In
order tn provide and pre- 1are for su"h re-
denption the secretary Of the treasury was
authorized not only to use any surplus rove
MUGS 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. 1879, and b. fore the date thus aDp1int-
ed for the redemption and retirement of these
notes, another stLtua WAS plsSe fOrbidding
their further cancellation and retirement
Some OF them had, however, been previously
redeemed and cancelled upol the issue Of addi-
tional national bank circulation, as permitted
by the law OF 1877, so that the amount out
standing at the time Of the p ,sslgo Of the act
forbldding their further retirement was ST."
G8l, 0i6. Tho law OF 1873 did MT STOP ut dis
tinct prohibition but contained, in addition,
the following provision: And when
any Of said ties may be redeemed or
be received into the treasury, under any
law, from any source VIII ltever. and
shall belong to the United States. they shall
not be retired Cancelled, or destroyed, but they
shall be reissued and made out again and kept
| in circulation. This was the condition OF af-
fairs on the LIST day Of January, 1879, which had
| been fixed upon four years before as the date
| for entering upon the redemption and retire.
ment OF all these notes, and for which such
abundant means had been provided. The gov
eminent was put in the anomalous situation OF
owing to the holders Of these notes debts pay
able in gold on demand, which could neither be
retired by receiving such notes in DISCHARGE of
obligations due tie government, nor Cancelled
by actual payment in gold. 1t was forced to
redeem without redemption and to pay without
| acquittance.
There has been issued and sold S9j, $4,000 Of
the bonds authorized by the resumption act
of 1917, the proceeds Of which, together with
| the gold In tho treasury, created gold
| fund deemed sufficient to meet the demands
which might be made upon 1t for the rede mp
tion Of the outstanding United States notes
This. fund, together with such other gold as
might be from time to time In the treasury
| uNulluDl6 lOT lne SulIlG puTpOSCt uhS DCCi oihSS
called our gold reserve and elOl,0OLOOO has
been regarded as an adequate amount to ac-
complsh its object. This fund amounted on
| the LIST day Of January, 1879, to NlLl9Dl3j
| and though thereafter constantly huctuAting'
| IL did not fall below that sum In July, 1892. In
April 1898, for the first time since its estab-
| lishment, this reserve amounted to less than
SlOJ.O)O,OOO containing at that date only t9i,-
| OIL ,3N In the meantime and In July, 1890, an
| ill.,. L.
mental monthly purchases OF silver than had
been required under previous laws and pcovid-
ing that in payment for silver treasury notes
| OF the United States should be issued payable
| on demand in gold or silver coin at the dlscre-
| tion OF the secretary Of the treasury, II was
| however declared in the act to be the estab-
| lished policy OF the United States to maintain
the two metals on q parity with each
other upon the present Legal ratio, or
such ratio rs may be provided b. law.
In view OF this declaration 1t was not deemed
permissible for the secretary of the treasury
TO exercise the discretion in terms conferred
on him by refusing to pay gold on these notes
when demanded. because by such discrimina-
ton in favor Of the gold dollar. the so-called
parity Of the two metals would be destroyed
and grave and dangerous consequences would
be precipitated by affirming or accentuating
the constantly widening disparity between
| their actual value under the existing ratio
These obligations are the instruments which
ever since we have had q gold reserve, have
been used to deplete it.
This reserve, as has been stated, had fallen
in April, 1893 to 1921 1871 II has from that
time to the present with very few and I'M
portant movements, steadily decreased, except
as it has been temporarily replenished by the
sale Of bonds Among the causes for this con-
slant and uniform shrilkage in this fund may
be mentioned the falling of OF exports under
the operation OF the tariff law until recently in
force, which crippled cur exchange OF com
modities with foreign nations and necesSttatel
to some extent the payment OF our balances in
gold the unnatural infusion OF silver into our
currency and the increase In agitation
for it's fire., anil unlimited coinage
which have Greater apprehension rs to our dis
position or ability to continue gold payments.
! the consequent boarding OF gold ut home and
/ the stoppage Of investments OF foreign capital
rs we'll as the return Of our securities already
sold abroad and the high rate OF foreign ex-
change, which induce the shipment Of our gold
| to be drawn against us as matter OF specula-
tion. In consequence OF these conditions the
gold reserve on the 1st day OF February 1894,
was reduced to s6l.4Is,377 having lost more
than ST. 0),O)J during the preceding nine
months, or since April, 1904 It's repleniShment
being necessary and no other manner OF ac-
compllshing It being possible resort was
had to the issue and sale Of bonds pro-
yided for by the resumption act OF 1874
Fifty millions OF these bonds were sold, yield
ing 1853, GS3 1851, which was added to the re-
serve fund OF gold then on hand. As result
| 81 this onerntion this reserve, which had Suf-