The morning times., 1895-12-04

| pose OF revenue. curtaiied our traGe reli
| mons ana fnpeded our entrance TO the ma
kets OF the world. has been Superseded by
| tari1 policy which in principle il base
| ipOn drnial or tue rig az OF the eoyerni.i-
| 20 oDStruct the avenues to our pco pies cheai
| living or lessen their comfort and content
ment. Tor the sake of according especial ad
| vantages to favorit.-s, and which. while en
other nations. recognizes the fact that Amer
can seif-reliance. thrift and ingenuity cai
| build upou country q Industries and develo1
| Its resources more surely than enervatint
| paternalisni.
COINAGE OF SILVER.
The compulsory purchase and coinag'
/ Of silver by the guYeenment. unchecked
and unreguIated by business conditions
and needless of our currency needs. which
for more than fifteen years diluted oui
circulating medium. undermined conf
dencc abroad in our financial ability, and
at last cuimiDatcd in distress and panic al
home. has been recently stopped by the
repeal OF the Ia ws which forced This reck'
less scheme upon the country
The things thus accomplished, notwith.
standing their extreme Importance and
beneficent effects. fall far slort Of curin
the monetary evils from which we suffer
as result Of f,ng indulgence in 1u-advised
financial expedients.
ihr currency ,lti,Ominated United States
notes and commonly known as greeDbacks
was issued in large volume tip ring the late
civil war. and was intended originally tO
meet the ezIgeDcies OF that perlod. IL VIII
w rtfD Uy u ttttftBtt 10 tIt ttBsllts HI
gress 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 rot
all the la US relating to them si'Ine provision
was made contemplating their voluntary
or compulsory retirement A large quantity
OF them. however, were kept on foot and
mingled with the currency Of the country,
So Luat the close vi Tie War LneS
amounted tn 1851 .sea. .0T3.
IN..N .Hx.IU an
January, 1875. a law was passed providing
for the resumption OF specie payments. by
which the Secretary Of the Treas sury was re-
auired. whenever additional circulation
wasissued to nationalbanks TO United
States notes equal in amount TO SO per
% IS at u Mi fii; f-'ia Z y ~
Sn ssa oon on oo spc This noi isw rnrther proSide
that on an after the 1st day OF January.
1e79. the United States notes then out
standing should be redeemed In coin. and IN
order to provide and prepare for such
redemption tho Secretary OF the Treasury
was authorized not only tc ase any surplus
revenues OF the government. but to issue
bonds or the United States and dispose OF
them for coin and to use theproceetls for the
purposes contemplated by the statute.
RETIREMENT OF GREENBACKS.
In May, 1873. and before the date thus
appointed for the redemption and retire
n,ent OF these notes. another statute was
passed rorbidding their further cancellation
been previously redeemed and cancelled
uDon the issue OF additional nationai-bank
as permitted by the law OF
1876. SO that the mount Outstanding az the
time OF the passage OF the act forbtddtng
their further retirement was S346 .6s l,Ol6-
The law or 1878 did not stop at distinct
but contained in addition. the
following express DrovisiOn-
"A nj when any Of saie notes may De re
deemed or be received into the Treasury.
under any law, from any source whatever
= Gt1 fatnnr tn l1nfff.n
shall not be retired. cancelled or destroyed,
but they shall be reissued and paid out
again and kept In circulation
This was tie conditiou OF affairs on the
Ist day OF January, 1879. which had been
liked upon four years before as the date
,or entering upon the redemption and re'
.iremeut OF all these notes, and for which
,lcn abundant means had been provided
The government was put In the anoma-
Gus situation OF owing 20 the hoiders or its
Dotes debts payable In gold Oh demand
y hicI could neither be retired By receiving
sich notes In discharge or obligau auoDs due
he government dor Cancelled by actual pay
nent in gold 1t was forced to redeem
xitnout redemption and to pay without ac-
lulttance-
There had been issued and sold $685. |
800 900 of the bopds authorized by the |
assumption act Of 1876. the proceeds of |
rbich, together with other gold IN the |
| Treasury. crea ted a gold fund deemed suffi- |
made upon il for the redemption OF the out |
United States notes. This fund. |
osether with such other gold as might be |
rom time to time In the Treasury avail |
aised our gold reserve, and SlOp, 900 900 ]
las been regarded as an adequate amount |
d on the lst day or January. 1879, to |
Il Ia, le3, $50, aud though thereafter con- |
tantly fluctuating, it ed not fall below
hat sum u util July, 1892 In April, 1898.
or the first time slnce its establishment. /
his reserve amounted 10 less than $780,
90. 900. containing at that date only
81, OH, $50.
In the meantime, aud In July, 1890, an
ct had been passed directing larger gov
rnmental monthly purchases of silver tiian
ad been required under previous IN ws, aud |
roviding that in payment fur such silver
reasury notes uI the United States should |
2 issued payable on demand in geld or !
liver coin at the discretion of the Secre- |
Try OF the Treasury. 1t was, however, de |
ared in the act to be "the established |
olicy of the United States to- maintain the !
yo metals TN O parity with each Other 4
pom the present legal ratio, or such ratio |
may be provided by law" In view of
lis declaration IL was mt deemed permiS- |
bic for the Secretary of the Treasury tn |
Sprcisc the discretion n terms Conferred on |
i'm. BY refusing to pay gold O n these notes
hen demanded. beca use b Y such QIsCT uiilid- |
on in favor of the gold dollar the So l
lied parity of the two metals would be 1
,Stroyed. and grave and dangerous can
qHences would be precipitated by affirm |
Z or accentuaticg the constantly widening |
spariiy between their actual values un-
REATED AS GOLD OBLIGATIONS
II thus resulted that the Treasury notes
sued in payment OF silver purchases under
e law of 1890 we're necessarily treated
gold obligations, at the option of the |
,lder. These nntes ON the 1st day OF No l
mber, 1898. when the law compelling the
opthly purchase af silver was repealed. | {
Mounted to tnore than Sl5o.0oo. goo The |
ties uf this description now outstanding ! 5
ded to the United States nntes still undi- I
inished by redemption OF cancellation !
Mounting IL nearly $500 .oOo, 900. These
ligatisns are the instruments which. |
er since we have had a gold reserve. I
We been used to deplete it.
This reserve. as has been stated had 4 /
lien In April, 1898, to S97, oil $50. It ,
S from ulat time to tue present, with 4
ry few and animportant upward move
ents, steadily decreased, except as 1t has |
en- temporarily replenlshed by the sale Of | :
uds. Ii
Among the causes for this constant and q
iform sh rinkage in this fund may be nlen- | !,
med the great falling off OF exports under | s
e operation OF the tariff la until recently | .
force. which crippled our exchange OF
to some extent the payment of |
r balances in gold; the unnatural infusion | +
silver into our currency and the increas- |
: agitation for its free and unlimited coin :
e. which have crea ted apprehension as to |
disposition or ability to continue gold l :
yDents; the consequent boarding of gold | :
nome and the stoppage OF investments Of
eign capital, as Well the return of our | :
:urities already sold abroad, and the high | =
e OF foreign exchange. which induced the |
pment of our gold TO be drawn against. | =.
a matter OF speculation.
n consequence Of these conditions the | :
ID reserve on the LIST day of February. Q
"a. was reduced to $65, ,43S, ,377 having | q
| more than S3l ,0O0.Lo0 during the pre- I
ling nine months, or since April, 1898. q
fepieuishment being necessary. and no ! y
Ter manner of accomplishing IL being pos n
lc, resort was had to the issue and sale | U
bonds provided for by the resumption u
of 1875. Fifty millions of these bonds | c
re sold. yielding S5S, ,633, ,295.71, which |
S added to the reserve fund of gold then | IL