Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1895-12-04

sO2. Its-depletion was, however, i'm
mediately thereaftre SO accelerated that
on the 30th day of June, 1894, it had
fallen to S64, s73,025, thus losing by
Withdrawals more than $40, ,O0o
in five months. and dropping slightly
below its situation when the sale OF
$50. 900, 900 in bonds was effected py
its REIMBURSEMENT. This depressed con-
dition grew worse, and on the gath day
of November, 1894, our gold reserve
being reduced to $57. 500, FOL, it, be-
came necessary to again strengthen IT.
This wasEdone by another sale OF bonds
amounting to $50. 900, 600. from which
there was realized $58. 538. 600, with
which the fund was increased to SILL
142, 021 Oh the 4th day of December,
1894.
Again disappointment awaited the
anxious hope for relief. There was
not even lull in the exasperating
Withdrawals of gold. On the contrary,
they grew larger and more persistent
than ever. Between the 4th day OF
December, 1914, and early in February,
1895, period of scarcely more than
two months after the second reinforce
ment of our gold reserve by the sale
of bonds, it had lost by such with
drawals more than 500, 900. 600, and
had fallen to Sal, $40. 1911.
AN APPEAL TO CONGRESS.
Nearly $45. 1000. 900 had been with
III x,,or,fh MN obi QtalU
preceding this situation. In anticipa-
tion of impending trouble l had on the
28th day of January, 1895, addressed
a communication to Congress fully
setting forth our difficulties and dan
gerous position and earnestly recon-
mending that authority be given the
Secretary of the Treasury to issue bonds
bearing q low rate of interest payable
by their terms in gold for the purpose
maintaining sufficient gold reserve
and also for the redemption and can
collation. of outstanding United States
notes and the Treasury notes issued
for the purchase of silver under the
law of 1890. This recommendation
did not. however. meet with legislative
approval.
AN AGREEMENT WITH FINAN-
CIERS.
In this emergency and in view of its
surrounding perplexities, it became en-
tirely apparent to those upon whom the
struggle for safety was devolved. not
only that our gold reserve must for the
third time in less than thirteen months
be restored by another issue and sale OF
bonds bearing a high rate of interest
and badly suited to the purpose, but
that "a plan must be adopted for their
disposition promising better results
than those realized on previous sales.
An agreement was therefore made with
a number of f1nanciers and bankers.
whereby it was stipulated that 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 500, 900. 900, should
be exchanged for gold receivable by
weight amounting to little more
than s65, 900, 900. 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 the
amount was to be furnished from
abroad. It 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 bearing interest at the rate OF .
per cent per annum. might within ten
years, be substituted at par for the 4
per cent bonds described in the agree
ment. On the day this contract was
made is terms were communicated to
Congress by a special executive mes.
sage, in which it was stated that more
than sixteen millions of dollars would
be saved to the Government If gold
bonds bearing per cent interest were
authorized to be substituted for those
mentioned in the contract.
CONGRESS FAILED TO ACT.
The Congress having declined to
grant the necessary authority to secure
this saving, the contract. unmodified,
was carried out. resulting in gold
reserve amounting to $107. Ell, $3.50 on
the 9Th day of July, 1895.
Recent Withdrawals have reduced the
reserve from $1o7. 571, $40 on the 9Th
day of July, 1895. to $79.333. $50.
How long it will remain large enough
to render its increase unnecessary is
only matter of conjecture, though quite
large Withdrawals for shipment in the
immediate future are predicted in all
we'll informed quarters. About ST.
900. 900 has been withdrawn during the
month of November.
The foregoing statement of events
and conditions develops the fact that
after increasing our interest bearing
l. -, than 81RC