Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1895-12-04

time the laws were passed authorizing the
issue Of these notes that their advocates de-
eisred they were int, nded for only temporary
use ard to meet the EN- rgency of war. In
almost IL no; I'll. the laws relating to them some
provision was made conte Tplating their volun-
taTy or compulsory retirement. A large guam
uty OF them. however. we kept on foot and
mingled with the currency of the country. SO
tnas at the close Of the year 1s.4 they amounted
to Ssel .a3a73.
THE presid mt then gives a history of the
laws provid TT for the resumption of specie
iayments and the authority to issue bonds Tor
pnrpose, and that and the law forbiddins the
Iurtnsr cancellation and retirement OF the
greenbac KS passed in 1875.
Redemption That Don't Redeem.
The law OF 1875 did not stop at distinct pro
nibltion but contained in add ton. the TO. low
ing provision And when any of said notes
may be redeemed or received into the treasury
shall belong to the United States. they shall
not De retired. cancelled. or destroyed. but
aud kept in Circulation, pau This hi, was
the condition Of affairs on the LIST day OF
January. 1873, which had been fixed upon four
yea before as the date for entering upon the
red mption and retirement of all these notes.
ana Tor which such abundant means had be n
provided The government was PIT in the
anomalous situation OF owing to the holders of
us notes debts payable in gold on demand
which could neither be retired by receiving
sucn notes IN discharee OF obi-ations due the
koSerlmf mt nor cancelled by actual payment
in gold 1t was forced to redeem without re-
demption and to pay without acquittance.
fluctuation OF the Gold X eserve.
There has been issued and sold Sa5. 30, 600 of
the bonds authorized by the resumption act of
1853; the proceeds OF which. together with other
gold in the treasury. created a gold fund
deemed sufficient to meet the demands which
might be made upon it for the redemption of
the outstanding United States notes This
iund. together with sich other gold as might
DE from time to time in the treasury available
for the same purpose. has been since called our
hp fitafl
as an adequate amount to accomplish its OBJ
1ect. This fund amounted on the first day of
January ls.9- to Sill ls;.;i1. and though there
after constantly fuctuating. Ii did not fall be-
low that sum until July. lss2.. In April. 1892.
Tor the frs: time since its establishment. this
reserve amounted to less than SlGD,0DUt0. con
tanning at that date only 81. oil SD.
IN the meantime and IN July, 1880. an act had
been passed dSccting larger governmental
CURED under previous laws, and providing that
IN payment for such silver treasury notes of
the United States should be issued payable on
demand In gold or silver coin at the discretion
OF the secretary of the treasury. 1t was how
ever. declared in the act to be The established
policy OF the United states to maintain the
Two metals Oh parity with each other upon
the present legal ratio. or such ratio as may
be provided by law
In view Of this declaration it was not deemed
perinlssbie for the secretary of the treasury to
exercise the discretion in terms conferred on
MN by ref using to pay gold on these notes
when demanded. because by such discrimina-
ton IN favor Of the gold dollar the socalled
parity of the two metals would be destroyed
and grave and dangerous consequences
would be precipitated by affirming
disparity between their actual values under
the existing ratio. 1t thus resulted that the
treasury notes issued i'll payment of silver pur-
chases under the law of 1880 We're necessarily
treated as gold obligations at the option OF
the holder. These notes on the lst day of No
vember. lScj, when the law compelling the
monthly purchase of silver was repealed.
amounted to more than S2.j.,E0,UO The notes
OF this description now outstanding added to
the United States still undiminished by re-
demption cancellation constitute a volume
OF gold obligations amounting to nearly $50.
UU.un These obligations are instruments
which. ever since we have had gold reserve,
have been used to deplcte it.
III S reserv-, a has been stated, had fallen in
April. 1885, to S'.rll.sst X has from that time
TO the pr sent with very W and uninportant
upward movement steadily decreased. except
as it has been temporarily rep!cnished by the
sale o. bonds.