The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1895-12-05

which while encouraging our intercourse and
trade with other nations. recognize the fact
thrt American Scit-reliancc. thrift ana in
renuity can build up our countrya Industries
and develop its resources more surely than
enervating paternalism.
The compulsory purchase and coinage OF Si.-
yer ty the government unchecked and unrc: u
lated by business conditions AMI needless of
our currency needs. wli'h for more than III
teen years diluted our circulating medium un-
derminei confidence abro ii in oar iilanc 81
ability. and at last cumlnItcd in distress - d
panic ut home has been recent! stopped b.
the repeal of the laws which forced tn!S rcck-
less scnemc upon tie country
The things thus accomplished. notwitE-
standing their extreme importance an bancf-
cent effects. fall far short Of curing the moaC-
tary evils from which suffer ~ Il result of
long indulgence ia ill-:.dvi ~ed financial exped-
ents The currency denoninltel United
States notes and commonly known rs greNn-
backs was issued in large vJlu iie during the
late civil war ana intended originally to meet
the exi-cncics OF that period. It viii be seen
by Il rcft renee to the debates in ongrcss at he
time the laws were passed author
izing the issue of these notes
that their advocates declared they were in
tended for only temporary u>e and to me,
the emergency of war. n almost. if not all
the laws relating to them some p-o;iSion WIS
pulsory retirement y large quantity Of en-,
however. were kept on foot and mingled with
the currenc? of the country so ;hat Il the
close of the year 1874 lhey amounted To 81 =,
g.9O7&
Immediately after that date and il January.
1872. law was passed provldln" for the re-
sumption Of specie payments by which the sec-
retary Of the trc ,sury WIS required whencv
addition II circulation WIS issue II nat on
banks to retire United Stats noccs equal III
amount TO 50 per cent. of such additional n
tional bank circulation until such notes we e
reduced TO siUU.0O 90 This Ia further pro-
vided that on and after the first Il ~ Of Janr-
ary. 1879. the Uni ed States ictes then OF t.
standing saouid be redeemed in coin. and N
order to provide aud prepare for such cdeml-
tion the secretary of the treasury WAS au:h r
lied not on TO use any surplus revenues q T
the government. but to issue bonds of i c
United States and dispose of them for
coin. AMI to use the proceeds Tor the
PURPOSES contemplated by the statu c,
in Nay. 1873. and before the te thus appoi; g
ed for the redemption ana rc:ir M 1t OF the. Q
note-. another statute was passed forbiddi
their further cancellltion and retircTn NJ.
Some OF them had. however. been previously
rcdez med and canoe led upon the issue of at
Gitiolal national bank circulation rs permit
ted b: the law of l>.5 that the amount out
standing ut he Il ne o: the Dt ,Sarc CT the act
forpid,ing their further retirement Was .3i6.-
G3l.Ol6 The law Of 1875 III not stop at Cis-
tinct PROHIBITION. but contained in addition.
the follow wHs expire = provision: Ard
when any of id notes may be re-
d, emci or be received into the tree >urr,
uuder any law. fro n any source whatever. and
shall b"long TO tie CnIted States. they shall
not be retired Cancelled o. destroyed but tley
shall be reiSsuei. AMI plid o 1t ag Iil and iel t
in circulatlo l."
This was the condition of affairs on the fr t
day Of lnuIry. 1878. which hal been fixed upon
four years before rs the date for entering upon
the rede enption and retirement Of all the Q
notes. and for which such abundant meal s
had been provided. The g)Etrnme mt g
put in the anomalous situation Of owing
TO the holders of its notes. debts pay
able in gold on demand. which could neither
be retired br re:elyil: sucn nOteS ii dis
charge of oblig ltiols Ie the government nor
cancelled by actual payment in gold 1t was
forced TO redeem without redcml ii n
and to ply withou- acquittancu
There has been issLel and sold $g5.5O00U Of
the bonds authorized by the resumption act OF
1919 The proceeds Of which to tcther with
other gold in the treasury and gold fund
deemed sufficient to meet the demands wni:h
might be made upon 1t for the redemption Of
the outstandin: United States noIc,. This
fund tascthe. with such other god as might
for the same plrposc, his since been called o. +
gold reserve and 800 cJ0, 90 has been regarded
as an adequate amount TO accOu Il sh It's
object This fund amounted on t. :. LIST day
of January, 1874. to :Iri.i9}3C0. an thong
thereafter constantly fiuctuating 1t d.d
not fall below that i'll July. lS92 III
April. 1872. for the first tim since its e tub
ishment this reserve am united to less IN; n
lO0.OJO0OO, containing at that date only I!'-
Oil3n
In the mean,l-ae and in July 1890. an act n; d
been passed desiring r@cr government
monthly purch sc, of silver than mad been rt =
quired under previous laws. and providi g
that il payment for such silver. treasury not, $
OF the Cnitei : te> should lie issuci payas g
on demaud in gold OF silver coin. It the diScr, =
tion of the secretary of the trclSu Y. II wds,
however. declared in the act to be the estat =
lished policy CT the Unijel States to maintain
the two metals on parity with each other
upon the pre- eat leg i ratio. CT su'
ratio as mGy be provi led by law.
In view of this declaration il was rot deemed
permissible for the secretary OF the treasury
to exercise the discretion in terms conferred
on him b. refusing to pay gold on these notes
when demand d bee .ure by such discrim na-
tion in favor OF the god dollar the so-called
purity of the two metals would b. destroyo O.
and -rave and dangerous consequences wou
the constantly wild ming disparitt between
their actu.i va'ues unler the existing ratio
il thus resulted that the tire .su:y nOt.s issued
III payment of silver purchase, undec the law
of le9O were necessarily treated Us gold oblig .
iions. at the option of the holder. These notes
on the lst day Of November. . when the law
compelling the monthly purchase of silver was
repealed. amounted to more tn IN sl5N.OOOO)o
The notes of tniS description now outstlndin:
added n tho ITrifr 4 sill
minished b. r.dt nption or cancellation con-
Stitule IL volume OF gold obligations amount
ing 10 nearly 5000 90 fh sc obligations
are the Instruments which. ever since we I'VE
had gold reserve, have been u-ed to de-
plete II.
This reserve. IS h been stated hid fallen
in April. 1873 10 S91. l.3 U. II has from III
time TO the present with very few and unm-
portant upward movements, steaCily &C =
crei>ed. except as it has been temporarily It.
pleni>hed by the sale of b JndS. Among the
cause; for thi> constant uni uniform snrial =
ing in this fund may be mentioned The great
falling of of exports under the operation of
the tllif law until recently in force which
crippled our exchange of commodities with
foreign nations an! nccc ,sitattd to some eX-
tent the payment OF balances n
gold: tac unnatural infusion of silver into
our currency and the increasing agita-
ton for its free and unlimited coinage,
which have created apprehension as to our
disposition or ability to continue gold pay
ments: the consequent hoariing of gold al
home and the stoppagc OF in c,tments OF fer.
eign canitl Is well aS The return of our socu' =
tiles Already sold aoroid and tnc high rate I
foreign exchange. VIII en- induced the shpme. t
of our gold to be drawn against, as 4 matter Il
speculation,
Its rep!enshment being necessary, and no
other manner of accomplishing IL being posi-.
bic resort WIS had to the issue and sale Of bonds
provided for By the assumption act of 1879.
Fifty millions of these bontiS were sold. yield
ing 633. 29j al. which was added to the G.
serve fund Of gold then on hand. AS a re>u
of this operation this reserve which had suf-
fered constant and ia-ge Withdrawals in the
meantime stood on the 6tn day of March. l>9i,
Vt the sum of :ij'.4IG-0I Its depletion WIS.
however. immedi ltcly thereafter so accelt T.
ated that on the 30tl day OF juno. 1894, ii Il d
fallen to ca S.3.O.5 thus losing by Withdrawals
more than + 0O0.01J in five months and drop
ping Slightly below its situation when the sale
of .50.0JO.0jO in bonds was effected for its re-
plenishment Til, depressed condition grew
worse. and on the 9th day of November. 1894,
our gold reserve bein, reduced to s516G9.0l
it bee; me necessary to again strengthen 1t.
This WAS done by anoth sale of bonds
amounting to S.0.0U0.000 from which there was
realized $50 53S. SO. with which the fund was
increased to slll,li..O3l on the ith day Of De-
ccmber, 1871
Between the ith day OF December. 1894 and
cariy in February. l>91-a period of scarcely
more than two months after the second re.
enforcement of our gold res. rye by the sale OF
bonds--it had lost by Withdrawals more than