Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1895-12-06

period. It will be seen by a reference to the
debates in congress at the timo laws were
passed authorizing the issue of these notes.
that their advocates declared they were in
tended for only temporary use and to meet the
emergency of war In almost, il not ALL the
laws relating TO them, some provision was
made contemplating their voluntary or COM
pulsory retirement. large quantity of them,
however, woro kept on foot and mingled with
the currency OF tho country. so that at the
close of the year 1874 they amour ted to $751;
9g9,b7s. Immediately after that da to and in
January, 1875. law was passed providing for
the resumption of specie payment. by
which the Secretary of the Treasury
was required, whenever additional circu-
lation was isiued to National banks.
to retire United States notes i'll equal amount
to so per cent of such additional National bank
circulation until such notes were reduced to
S}O0,000,0OO This law further provides that on
and after tho last day of January, 1879, the
United States notes then outstanding, should
be redeemed in coin, and in order to provide
and prepare for such redemption the secretary
of the treasury was authorized not only to use
any surplus revenues of the government, but to
issue bonds of the United States and dispose of
them for coin and 20 use the proceeds for the
purposes contemplated by the statute.
In May, 1873, and before the date thus ap-
pointed for tho redemption AMI retirement of
these notes, another statute was passed for
bidding their further cancellation and retire
ment. Some of them had, however, been pre-
vously redeemed and cancelled upon the issue
of additional national bank circula tiOn as per
mitted by the law of 1915 so that the amount
outstanding at the time of the passage OF the
act forbidding their further retirement was
SIO,jSl DIG. The law Of 1873 did not stop at dis
tinct prohibition but contained in addition
the following provision, And when any
of said notes may DE redeemed or
Ia.
any law, from any source whatever, and
shall belong to the United States, theys hall not
he retired cancelled, destroyed, but they
shall b. re-issued and paid out again and Ike p t
in circulation" This was the condition of af-
fairs an the LIST day Of January, 1879, which had
been liked upon four years before as the date
for entering upon the redemption and retire
inent of all these nOtes, n MI for which such
abundant means had been provided The gov
eminent was put in the anomalous situation of
owing H. tn, holders of its notes. debts payable
in gold On demand which could nett her he re-
trrl by receiving such notes in discharge of
obligations due the government, not cancelled by
actual payment in gold 1t was forced to
deem without redemption and to pay without
acquittance.
There has been issued and sold sJJ,5OO0 900 of
the bonds author zed by the resumption act of
ISIS, the proceeds of which, together with other
gold IN the treasury created IA gold fund deemed
made upon it for the redemption of the out
standing United State, notes. This fund. to-
gather with such other gold as might be from
time totime in the treasury available for the
same purpose, has been since called our gold
reserve and 500 0J0,0DO has been regarded as an
adequate amount to accomplish its object.
This fund amounted on the list day of January
I>.9, to Sll4lgG,198 and though thereafter con-
stanty huctuatiug it did not fall below that
sum in July, 1892 In April, 1898 for the first
tnp since its establishment this reserve
amounted to less than Si00,00O0J0, con tanning
at that date only $g7,0l1,3 3J.
The Bond Contract.
The message reviews at great length the low
cring of the & I'D reserve, the shipment of gold,
the issuing Of bonds, the entering into the bond
contract with capitalists, and his messages to
Congress for relief Continuing, the President
says:
The Congress having dec incd to grant the
necessary authority 10 secure this saving the
cout ract unmodited was carried ont, resulting
in u gold reserve amounting TO Sl07.j7l 2lJ ON
the day of July, 1895. The performance of
ihis contract not only restored the reserve but
chec, rd for a time the Withdrawals Of gold and
brought on period Of restur'i confidence and
such peace aud quiet IN business circles rs
We q OF the greatest possible value to every m
tcrcst that affects our people have never had
tlr slightest misgvng concerning the Wisdom
or propricty of this arrangement and am quite
willing tn answer for my full share of RESPONSE
bIlity for its promotion
hclieve it averted disaster, the immiUcuce
OF which is fortunately not at this time gcner-
ally understood by our people Though the
contra I mentioned stayed fora time the tide
Of gold withdrawal. its good results cuuld not
br pcrmnpcut Recent Withdrawals have re-.
duced the reserve from sln7 sligo an the til
day Of July, $50, tn 4.H.i3&lG How long It
will remain large enough 10 rcuder its Increase
unnecessary Is only matter Of conjecture,
though quito large Withdrawals for shipment
in the immediate future arc predicted IN well
Ia ormed quarters About Sl6OOO,UO ha,
been withdrawn during the month of November
The foregoing statement of events and cond-
tious develop the fact that after increasing our
interest bearing bonded indebtedness more
than $l62 100000 to save our gold reserve. We
are nearly where we started, having now in
such S9,333,9'0. against SCI. 1881. IN
February 1894. when the first bonds were issued.
Though the amount of gold drawn from the
treasury appears to be very 'lrge, as gathered
from the facts and figures herein present it
actually was much larger. considerable sums
having been acquired by the treasury within
the several periods stated without the issue of
bonds
On the 18th of January. 1895, It was reported
10y the secretary of the treasury that more than
SI52,O0OoOO of gold had been withdrawn for
boarding or shipment during the year pre-
cccdiug, lie now reports that from January /,
1919, to July II, 1890, period OF moro than 10
ycais only little over S2S.00,010 was with
drawn and that between July II, 1890 the dstc
OF the passage OF the law for an increased pur-
chase of silver, and the first day Of December,
1897, or within less than five aud q half years
there was withdrawn nearly S'iS0WoJ9,
making the total at more than SiWNu.oM
drawn from the treasury in gold since January
list. lsi9, The date nXed n 1913 for the retire
ment of the Unitod States notes
Nearly q. 800 O0l 90 the gold thus Withdrawn
have been paid out on tllese United States
notes and yet ever, one OF the Sidn0J,0Jj Is
still uncancclled aud ready to do service in IN
ture gold depictiols More than s1d,0ll,n0 IA
gold has since thrir c-cation in $50 hern paid
out from ti- treasury upon the notes given on
the purchase or sIvcr by the government;
and yet the whole amounting to SIS O0j,OO1
except lit @ mure than tl6.0D.00O which have
been retire h, exchanges for silver at the 10
quest Of the holders. remain outstanding and
prepared io join their older aud mor"
perienced allic- az future raids upon the ticd.-
ury's gold .erNc.
TN Jt,y 49,. more than year and "A half
before the first bonds were issued to rcplcni-h
the gold reserve, there was a net balance ia the
treasury exclusive of such reserve Of less
than SisuD.OiO. hut the gold reserve
amounted io fnorc than 81 t0l0,0JJ, which was
the quietiug feature al the situation. IL was