The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1895-12-14
NATIONAL FINANCES.
Cause and Cure OF Bond Issues-Dire Eff
feet of FREQ Coinage.

NATIONAL FINANCES.
Cause and Cure of Bond Issues-Dire Eff
feet of FREQ Coinage.
AS we turn from a review of our foreign
relations to the contemplation OF our ma
| tional financial situation we are immedi-
| ately aware that we approach subject OF
domestic concern more important than any
one at present In such a perplexing and del
icate predicament as to require prompt and
wise treatment.
| silver by the government unchecked and
| unregulatcd by business conditions and
needless OF our currency renew needs, when t Ior
| medium. undermined confidence abroad In
| our financial ability, and at last culminat-
| ed In distress and panic at home. has been
recently stopped by the repeal OF the laws
which forced this reckless scheme upon
the country
| Review of Financial Legislation.
The currency denominated United States
| notes, and commonly known as green
backs. was issued In large volume during
the late civil war and was INTENDED origin
| II will be seen by reference to the debates
in congress at the time the 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, II not all.
| the laws relating to them some provision
was made contemplating their voluntary
/ or compulsory rotirement. A large guam
and mingled with the currency OF the
country. 30 that at the close OF the year 1874
they am0n in5S e Sssl sssSIs ana g.,
| unry, 1870. law was passed providing for
| the resumption of specie payments, by
| required, whenever additional circulation
| was issued to national banks, to retire
United states notes equal In amount to 50
circulation until such notes were reduced
| TO $500 100000 This law further provided
that te1a on ana after the LIST day OF January,
| standing should be redeemed in coin, and
In order to provide and prepare for such re-
was authorized not only to use any sur
plus revenues OF the government, but to
issue bonds Of the United States and dis
pose of them for coin, and to use the pro-
ceeds for the purposes contemplated by the
statute.
In May. ISIS. and before the date thus ap-
pointed for the redemption and retiroment
| of these notes, another statute was passed
| forbidding their future cancellation and
retirement. Some of them had. however,
been previously redeemed and cancelled
| upon the issue Of additional national bank
circulation. as permitted by the law Of
| 1875, SO that the amount outstanding at
| the time of the passage Of the act forbid
| ding further retirement was $40, 6Sl ole
Creation of the Reserve.
This was the condition OF affairs on the
| LIST day OF January, 1879. which had been
fixed upon four years before as the date
for entering upon the redemption and re-
tirement OF all these notes, ana Tor which
such abundant means had been provided.
| The government was put in the anomalous
situation of owing to the holders OF It's
which could neither be retired by receiv-
ing such notes In discharge of obligations
due the government. nor Cancelled by actual
payment In gold. 1t was forced to redeem
without redemption and to pay without
acquittance.
had been passed directing larger govern
mental monthly purchases Of silver than
had been required under previous laws, and
treasury notes OF the United States should
| be issued. payable on demand In gold or
silver coin. at the discretion OF the secre-
ciared in the act to be .'The estabiished DOL SI
| icy of the United States to maintain the
two metals on a parity with each other
as may be provided by law" In view OF
this declaration II was not deemed per-
missible for the secretary of the treasury
to exercise the discretion in terms con-
these notes when demanded, because BY
such discrimination In favor of the gold
| dollar the so-called parity Of the two metals
would be destroyed and grave and danger
Affirming or aceentSatnS tRe ~
widening disparity between their actual
values under the existing ratio.
Cause OF Depletion of the Reserve.
1t thus resulted that the treasury notes
issued IN payment OF silver purchases un-
| der the law of 1880 were necessarily treated
| as gold obligations, at the option of the
holder. These notes on the LIST day of No
vember. 1888. when the law compelling tho
monthly purchase of silver was repealed
amounted to more than SIS. Co., 900. The
added to the United States notes stili mh.
| diminished by redemption or cancellation.
TO y nssrS q Sls %bssa o%
| legations are the Instruments which, over
since we have had a gold reserve. have
Among the causes for this constant and
uniform shrinkage In this fund may be
Change of commodities WITH foreign ma
Of oaT es Ree the
natural Infusion of silver into our currency
and the increasing agitation for its free
apprehension as to our disposition or abil
ity to continue gold payments: the conse-
Of "a a. nd sh
as well as the return of our securities sold
abroad; and the high rate Of foreign ex-
gold to be drawn against. as a matter OF
| speculation.
Bond Issues Necessitated.
In consequence of these conditions. the
wss ren Hn the to Ia ass q hssns o
nine months, or since April. issg It's re-.
manner OF accomplishing it being possible,
resort was had to the issue and sale OF
bonds provided for by the redemption act
Of 1875. Fifty millions Of these bonds were
sold, yielding SIS. 633. 295. II, which was add
ed to the reserve fund of gold then on hand.
As a result of this operation this reserve,
which had suffered constant and large
Withdrawals In the meantime, stood on the
9Th day of March, 1894, at the sum of $1O7,
446,6g2 It's depletion was. however, Inn
mediately thereafter SO accelerated that
on the 90th day of June. 1894. 1t had fallen
to S64.S73.O25 thus losing by Withdrawals
more than N2, 1000 In five months, and
dropping slightly below it's situation when
the sale of $4,000 900 In bonds was effected
for Its replenishment.
This depressed condition grew worse.
and on the Path day of November, 1894, our
gold reserve being reduced to s57, 669, 701, IL
became necessary to again strengthen II.
This was done by another sale Of bonds.
amounting to $50, 900. for which there
was realized SIS. 500, with which the
fund was increased to Sill, ,021 on the 4th
day OF December. 1894.
Congress Refused to Act.
Again disappointment awaited the anxi-
Gus hope for relief. In anticipation of
impending trouble. I had on the 18th day
of January. 1895, addressed a communica-
ton to The congress fully setting forth our
dificulties and dangerous position. and
earnestly recommending that authority be
given the secretary OF the treasury 70 ~