The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1895-12-04

/ amounting 10 nthfly t0VVVVVVvV' lneed
obligations IRE the Instruments which,
ever since We have had q gold reserve,
have been used to depleteit,
This reserve, as has been stated, had
fallen In April 1898, TO S9I0ll,SsO II
has from that time to the present with
very few and unlmportant upward
movements, steadily decreased, except
as IL has been temporarily replenlBhed
by the sale OF bonds,
RANK DEMAGoGY.
Among tho causes for this constant
and uniform shrnkage in this fund
may be mentioned the great falling of
of exports under tho operation Of the
| tariff law until reCentlytn force, which
crippled our exchange OF commodities
| with foreign nations and necesEtnted
TO some extent the payment of our bal
Nnces in gold; the unnatural infusion Of
silver into our currency, and the In
creasing agitation for It's free and un-
| limited coinage, which have created APP
prehenSlOn az 10 our disposition or abll-
| lily TO continue gold payments; the con-
sequent boarding OF gold at home ana
the stoppage OF investments OF foreign
capital, as well as the return OF our BE-
cmitlcs already sold abroad and the
high rate OF foreign exchange, which
induced the shipment OF our gold 10 be
drawn against as a matter OF specula-
ton,
In consequence Of these conditions.
the gold reserve on the first day OF
February, 1894, was reduced to SGj,ASS,-
| 81, having lost more than 100000
during the preceding nine months, or
since April, 1893, Its replenlshment
being necessary, and no other manner
| OF accomplishing II being possible, re-
sort was had TO the issue and sale of
bonds, provided for by the resumption
act OF 1915
Fifty millions OF these bonds were
sold yielding S5S 6SS,ss5 II, which was
added to the reserve fund or gold then
on hands, AS II result OF this operation
this reserve, which had suffered con-
slant and large Withdrawals in tho
meantime, stood on the sixth day OF
March, 1894, ut the sum OF SlOI44G,SO2.
Its depletion was, however. immedi-
| ately thereafter SO accelerated that ON
tho S0th day OF June, 1894, II had fallen
to SGi,SIS .095, thus losing by withdraw
ais more than $i2.0OO,000 In 1--WE months,
and dropping slightly bolow It's sltua-
| ton when the sale OF $4,000, coo in bonds
was erected for It's replenishment. This
depressed condition grew worse ana on
the eth day OF November 1894. our
| gold reserve being reduced to Sb7669,IOl,
| II became necessary to again strength
en- It. This was done by another sale
OF bonds amounting to $50,O00,0OO, from
which there was realized SbS,6SS, 900 with
| which the fund was increased to Illl,-
1i2,O2l on the 4th day OF December
1894,
STILL No RELIEF,
Again disappointment awaited the
anxious hope for relief There was
not even a hull in the exasperRting
Withdrawals OF gold on the contrary
they grew larger and more persistent
than ever. Between the ith day OF De-
| cember, 1894. and early In February,
| 1895. a period OF scarcely. more than two
months after the second reinforcement
OF our gold reserve by the sale OF bonds,
II had lost by such Withdrawals more
than $69, 100000, and had fallen TO ST.
siO.lSl. Nearly Si3,0OO,OOO had been
withdrawn In the month Immediately
preceding this situation.
In anticipation OF Impending trouble,
/ had, on the 2sth day OF January, 1895,
| addressed Il communication to the Con-
gress fully setting forth our difficulties
| and dangerous position. and earnestly
recommending that authority be given
the secretary OF the treasury to issue
| bonds bearing a low rate of interest
payable By their terms In gold for the
| purpose OF maintaining u sufficient
| gold reserve, and also for the redemp-
| ton and cancellation OF outstanding,
| United States notes and the treasury
notes issued for the purchase OF silver
under the law OF 1890, This recommen-
dalton did not however. meet with
legislative approval.
In February. 1885, therefore, the stu
tlon was exceedingly critical. With q
reserve peTilously low, md refusal OF
| congressional aid. everything pointed
that the end Of gold payments by the
government was imminent. The results
of prior bond issues had been exceed
ingly unsatisfactory. and the large
Withdrawals OF gold immediately sue
ceedlng their public sale In open mar
| ket gave rise 10 n reasonable suspicion
| that large part OF the gold paid into
| the treasury upon such sales was
| promptIy drawn out again by the pres
| entation OF United States notes or
TREASURY notes and found its way to
| the hands OF those who had only tenn
porarIly parted with II In the purchase
| OF bonds,
In this emergency, and In view Of Its
surrounding perplexities II became en-
| tIrely apparent 10 those upon whom the
| struggle for safety was devolVed' not
| only that our gold reserve must, FOR the
! third time in lcsg than thirteen months.
be restored by another Issue and sale OF
| bonds bearing high rate OF interest
| md badly suited to the purpose. hut
| that n plnn must he adopted for their
| disposition promising better results
| than those realized on previous sales.
! An agreement was therefore made with
\ number uf ilnnncicrs and bankers,
whereby II was stipulated that bonds
described In the redemption act OF 1915,
payable in coin thirty years after their
| lntc, bearing interest Mt the rate Of four
per cent per annun, and amounting 10
| about $5g, 100000 should be exchanged
for gold, receivable by weight, amount
| Ing to n little more than SGl'OO,OO0,
This gold was to be delivered IN Fuch
Ingtaliments nB would complete Its de-
| livery within about six months from tho
date OF the contract. and at least One5
| half OF tho amount was to be furnished
from abroad II was also agreed by
those supplying this gold that during
the continuance OF the contract they
would by every means In their power
protect tho government against gold
Withdrawals
on the day this contract was made Its
terms were communicated to Congress-
by special executive fncssngc, In which
Il was stated that more than sixteen
millions OF dollars would be saved TO
Tho government II tho gold bonds bear
Ing three per cent interest were author
lied TO be substituted for those mem
toned In tho contract
The Congress having decided 10 grant
the necessary authority to secure this
saving. the contract, unmodlllcd. was
carried out. resulting In gold reserve
amounting to slO7. $50 on the Sth day
Of July, 1895. The performance Of this
| ..-...t.,.t .,.N a,tits VouipppH tho rnunryN