The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1895-12-19
more than s6o;OOo5od; and had rsIIdn

the struggle for safety was devolyed
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 a high rate
of interest and badly suited to the pnr-
pose, but that a plan must be adopted
for their disposition, promising better
results than those realized on previous
sales. An agreement was, therefore
made with a number of financiers and
bankers whereby II was stipulated
that bonds described in the resumption
act of 1875, payable in coin thirty
years after their date, bearing inter-
est at the rate OF 4 per cent per annum
and amounting TO about $62 600, ,0OO
should be exchanged for gold. receiva-
Bile by weight amounting to a little
more than S65,O00,000.
This gold was to be delivered In such
inStallments as would complete IT'S de-
livery within about six months from
the date Of the contract, and at least
oneIhalf Of the amount was to be fur
nished from abroad. 1t was also agreed
by those supplying this gold that dur
ing the continuance of the contract
they would by every means In their
power protect the government against
gold Withdrawals. The contract also
provided that If congress would au-
thorize their issue, bonds payable by
their terms in gold and bearing inter-
est at the rate of per cent. per annum
might within ten days be su ubstltuted
at par for the 4 per cent. bonds de-
scrlbed in the agreement.
On the day this contract was made
its terms were communicated to con-
gress by special executive message, in
which II was stated that more than
sixteen millions of dollars would he
saved to the government II gold bonds
bearing per cent interest were au-
thorized to be substituted for those
mentioned in the contract. The con-
gress having declined to grant the
necessary authority to secure this saw
ing, the contract, unmodlned, was car.
rled out, resulting in a gold reserve
amounting to S107, ,J77, ,230 on the Sth
day of July, 1896 The performance of
this contract not only restored the re-
serve, but checked for a time the with
drawals of gold and brought on a
period of restored confidence and such
peace and quiet in business circles as
were of the greatest possible value to
every interest that affects our people,
have never had the slightest mis-
giving concerning the wisdom or pro-
prlety of this arrangement, and am
quite willing to answer for my full
share of responsibility for It's promo
tion. l believe 1t averted a disaster,
the immlnence Of which was fortunate
ly not at the time generally under
stood by our people. Though the con-
tract mentioned stayed for a time the
tide of gold Withdrawals its good re-
suits could not be permanent.
On the 2Sth Of January 1895, II wa.
reported by the secretary of the treas.
ury that more than $172, 900, 900 of golt
had been withdrawn for boarding OF
shipment during the year preceding
He now reports that from January /
1879, to July IL, 1890. a period of more
than eleven years, only little ovel
SIS, 900 900 was withdrawn, and that be
tween July IA, 1890, the date Of the pas
sage of the law for an increased pur
chase Of silver, and the 1st day of De
oember, 1895, or within less than ivj
and one-half years, there was with
drawn nearly S375,0O0,OOO, making a to
tai Of more than $4O3, 900, 900 drawn from
the treasury in gold since January !
1879, the date fixed in 1875 for the retire
rnent of the United States notes.
Nearly 1927 100000 Of the gold thu
withdrawn has been paid on these Unit
ed States notes, and yet every one 0
the $346, 100000 Is still uncancelled, an,
ready to do service in future gold de
pletions. More than $1,000, 900 in gol
has, since their creation in $780, bee,
paid out from the treasury on the note
given on the purchase Of silver by tn
government; and yet the whole
amounting to $155, 900 900, except a It'll
more than s16,OOO,OOO which have bee
retired by exchange for silver at the re
quest Of the holders, remains outstand
ing and prepared TO join their older an
more experienced allies in future raid
upon the treasury gold reserve.
1t has always seemed to me that tn
provisions of law regarding the capita
! Of national banks which operate as
limitation to their location falls I
make proper compensation for the SUP
preston of state banks, which com
near to the people in all sections Q
the country and readily furnish ther
with banking accommodations and ia
cllities.
Any inconvenience or embarrassment
arising from these restrictions on tn
location of national banks might We
be remedied by better adapting tn
present system to the creation Of bank
In smaller communities or by permil
ting banks of large capital to establis
branches in such localities as woul
serve the people, so regulated and r.
, strained as to secure their safe an
conservative control and management
In the present stage of our difficult
VI Is not easy to understand how II
amount of our revenue receipts dlrec
ly affects it. The important questio
Is not the quantity of money receive
In revenue payments but the kind I
? money we maintain and our ability
continue In sound financial conditio
: We are considering the government
!, holdings of gold as related to Il
soundness of our money and 2S affec
, ing our national credit and monetal
strength.
4 In our present predicament no go
4 Is received by the government in pa
+ ~
there be IL the revenues were increase
3 The receipts of the treasury, when n
= In silver certificates, consist of Unit
= States notes and treasury notes
Y sued Tor silver purchases.
8 If 1t 10 said that the notes If held
: the government can be used TO obta
r gold for our reserve, the answer is eas
5 The people draw gold from the treasu
] on demand upon United States not
: and treasury notes, but the proposiu
z that the treasury can draw gold frC
: the people upon them would be regar
e ed In these days with wonder a.
amusement. And even If this could
y done, there is nothing to prevent tho
: thus parting with their gold from
: gaining 1t the next day or the ne
/ hour by the presen tatlon of the not
8 they received In exchange for II.
}, Private holders of gold unlike
y government, having no parity to ma
|, tain, would not be restrained trC
}. making the best bargain possible wh
: they furnished gold for the treasul
8 but the moment the secretary OF
J. treasury bought gold on any ter
l. above par he would establish a gene
o and universal premium upon 1t, III
e breaking down the parity between e.
e and silver which the government
q pledged to maintain and opening I
way TO new and serious complicatio
- In
IS charge a large share of our prese
N financial perplexities and dangers
N the operation OF the laws of 1878 q
\ 1890 compelling the purchase OF sllN