The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-12-04

notes ana fou1u It's Way 10 Ine ldIAS OK
those who had only temporarily parted
with it in the purchase OF bonds. In this
emergency, and in view OF its surrounding
perpIexities. Il became entirely apparent
10 those upon whom the struggle for safe
" was deyoived. not only that our gold
reserve must for the third time in less
than thirteen months be restored by an
+ other issue ard sale OF bonds bearing a
high rate Of interest and badly suited 10
the purpose, but that a plan must be
{ adopted for their disposition promising
better results than those realized on pre-
vous sales. An agreement was therefore
+ made with a number OF financiers and
bankers. whereby il was stipulated that
the bonds described in the resumption act
OF 1875. payable in coin thirty years after
their date. bearing interest at the rate of
{ per cent. per annum and amounting to
about 100000. should be exchanged for
gold receivable by weight. amounting 70 a
little more than s65.ao0.0oO. This gold was
to be delivered in such installments as
would complete its delivery within about
six months from the date of the contract,
and at least one-half of this 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 the government against gold with
drawals. The contract also provided that
If congress would authorize their issue,
bonds payable by their terms in gold and
7 bearing interest at the rate of 3 per cent.
per annum might within ten days be sub
stituted at par for the 1 per cent. bonds
described in the agreement. on the day
! the contract was made the terms were
/ communicated TO congress by a special ex-
ecutive message, in which II was stated
that more than $500 900 would be saved
to the government if gold bonds bearing
3 per cent. interest were authorized to be
substituted for those mentioned IN the
contract. The congress having declined TO
grant the necessary authority 10 secure
! this saving. the contract unmod1led was
carried out, resulting in a gold reserve
amounting TO sl07, s71 $50 on the sth day OF
Julv. 1905 The performance Of this con-
tract not only restored the reserve, but
/ checked for a time the withdrawal OF gold
and brought pm a period OF restored con-
| fdence and such peace and quiet IN ousl-
ness circles as were of the greatest posi-
BILE benefit in every interest that affects
! our people.
shoulders the Responsibility.
have never had the slightest missiving
concerning the wisdom or propriety OF this
ARRANGEMENT. and am quite Wiling to an
sver for my full share of responsibility for
its promotion. l believe it averted q DIS
aster the imminence OF which was Tor
tunatelv not at the time generally under
stood by our people.
DlE Xix tAlN -
for a time the tide OF gold Withdrawals its
| good results could not be permanent. Re-
! cent withdrawals have reduced the reserve
from s107. 81, 800 on the Sth day OF July, Nso,
} 10 SO, 333, 900. How long ii will remain large
enough to render it's increase unueces-
sarv is only matter of conjecture. though
quite large Withdrawals for shipment In
the immediate future are predicted IN
well-informed quarters. About $No,VVo,Wo
has been withdrawn during the month OF
November.
Back Where We Started.
The foregoing statement of events and
conditions developed the fact that after
increasing our interest-bearing bonded IN
debtedness more than Sl62,Ooo,0o to save
our gold reserve we are nearly where we
started having now in such reserve StS,-
1888. $3.50, as against So. 1887 in FEBRUARY,
1894, when the first bonds were issued. Ihe
amount drawn from the treasury appears
very large when gathered from the iactS
and figures herein presented. 1t actually
was much larger, considerable sums haV-
ing been acquired by the treasury wlthlh
the several periods stated without the Is
sue of bonds. on the 18th OF January, 1870,
IL was reported by the secretary or the
treasury that more than SlI2,oo0VU OF soiu
had been withdrawn for boarding or snip
ment during the year preceding. He now
reports that from January !, 1879. TO July
IA. 1890. a period of more than eleven years.
only a little over SIS 900, 0e was Withdrawn.
and that between July IA, 1890, the date or
the passage of the law for an increased
purchase of silver, and the lst day or De-
cember, 1895, or within less than hVe ana a
half years there was Withdrawn nearly
1915. 900. 600, making a total or more imam
1903. 900. 600 drawn from the treasury IN
gold since January 1, 1873, the date liked in
1875 for the retirement of the United states
notes.
Burn the G~reenbacks.
Nearly sS27. 600. 900 Of the gold thus with
drawn has been paid out on these United
States notes. and yet every one OF the
1916 900. 900 is still uncanceled and ready 10
do service.in future gold depletlons. More
than S76. 600, 900 in gold has, since their ere
alton in 1880, been paid out from the treas
ury upon notes given in the purchase OF
silver by the government and yet the
whole amount of sl53, GOO. 900. except a little
more than s16.O 1000 which have been re-
tired by exchanges for silver at the re-
ouest of the holders. remain outstanding
and prepared to join their older and more
experienced allies in future raids upon the
treasury's- gold reserve. In other words,
the government has paid IN goId more
than nine-tenths of its United States notes
and still owes them all. 1t has paid In gold
about one-half Of It's notes given for sill
yer purchases, without eXtiEgu.shing by
such payment one dollar of those notes.
When added to all this we are reminded
thor n carry on this astounding financial
scheme the government has incurred n
bonded Indebtedness of $9a5 800, 900 in estab-
fishing a gold reserve; and of N62,Si1,4o0
in Efforts to maintain 1T: that the annual
interest charge on such bonded indebted
ness Is more than 81. 600, 600: that a con
tinuance in our present course may result
in further bond issues. and that we have
suffered or are threatened with all this for 4
the sake OF supplying gold for foreign
shipments or facilitating its boarding at
home. a situation is exhibited which GER
tainlv ought to arrest attention and pro-
woke immediate legislative relief.
I am convinced that the only thorough
and practicable remedy for our troubles
is found in the retirement and cancellation
Of tho United States notes. commonly CALI
ed ~greenhacks. and the outstanding treas
urv notes issued by the government in
Davrent of silver purchases under the act
of 1880.
More Long Term Bonds.
believe this could be quite readily &C
comulfshed by the exchange OF these notes
for United States bonds OF small as well
as large denominations bearing a low rate
If interest. They should be long-term
bonds. thus Increasing their desirabll!ty as
Investments. and because their payment
could be well postponed 70 a period far
removed from present financial burdens
and perplexsties when with increased pros
p4-ifv and resources they could be more
easily met.
sell the Bonds I'm EuroDc
To insure the cancellation OF these notes
and also provide a way by which gold may