The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1895-12-06

been .PP,,,alous situation OF owing 10 the hold
The - y gts notes debts payable IN gold on de-
ers OF .Stic, could neither be retired by re-
MANI mani, such notes in exchange OF obligations
ce is ne government nor cancelled by actual
due IN ia gold. IL was forced to redeem
pay MT redemption and to pay without acquit-
isnee rnR GOLD RESERVE.
,,,-o Inns been issued and sold s95,500000 OF
I'M l'ooands authorized by the resumption act of
tne re nroceeds of which, together with
~, ~ gold in the treasury, created gold fund
SStaTned sufficient to meet the demands which
;rbt he made upon IL for the redemption of
ME- s,tstandfng United States notes. This
ne together with such other gold as might
~ from time to time in the treasury available
~ ~ ~ came purpose. has been since called
ioi w toja reserve and Sl00,00J000 has been re-
ou ur as an adequate amount to accomplish
~ object This fund amounted on the
~. Sag of January. 1879, TO Sll4,l96,l36. and
iS ~ thereafter constantly huctuatng
~ Ali not fall below that sum in July, 1892. In
,sas for the first time since It's establishment,
ie es'' reserve amounted to less than SlO00O0000
.nntaining nj that date only 1901 800. In the
SoOaantin1e and in July, 1850, an act had been
nassed directing larger monthly governmental
ppurcbases OF silver than had been required
PPndpr previOus laws, and providing that in
Davment FOR such silver treasury notes of the
| tinted States, should be issued payable on
demand in gold or silver coin, at the discre-
.fan ~ the secretary of the treasury. it was
Soweyer declared in the act to be the estab-
/ lisbed policy OF the United states TO maintain
/ he two metals on parity with each other
/ mon the present legal ratio or such ratio as
nav be provided by law.
H 9 vieyy of this declaration IL was not deemed
permissible for the secretary OF the treasury
~ exercise the discretion in terms conferred on
MIN by refusing to pay gold on these notes
when demanded, because by such discrimi-
nation in favor OF the gold dollar, the so-called
narity of the two metals would be destroyed,
and grave aud dangerous consequences would
he nrecipitated by affirming accentuat-
4 inc the constantly widening disparity between
their actual1valueS under the existing ratio.
n thus resulted that the treasury notes issued
in navment OF silver purchases under the law
Of 1890 we're necessarily treated as gold obliga-
tions at the option Of the holder.
THESE notes. on the first day of November
tsQ9 when the law compelling the monthly pur-
chase of silver was repealed, amounted to more
than sl55 10000. the notes of this desc iption
row outstanding. added to the United States
notes still undimnished by redemption or can
collation.. constitute a volume of gold obliga-
tions amounting to nearly Sj00,000000. These
obligations the instruments which, ever
since We have mad gold reserve, nave been
This reserve as has been stated. had fallen
IN April, 1898, to 500 OIL 800. 1t has from that
time 10 the present, with very few and uninl-
portant upward movements, steadily de-
creased, except as it has been temporarily re-
pleniShed by the sale OF bonds. Among the
causes for this constant ana uniform shrink
ing in this fund may be mentioned the great
falling of OF exports under the operation OF
The tariff law until recently in force. which
crippled our exchange of commodities with
forign nations and necessitated to some extent
the payment of our balances in gold
the unnatural infusion of silver into
our currency, and the increase in agita-
ton for its free and unlimited coinage,
which have created apprehension as TO our dis
position or ability to continue gold payments.
the consequent boarding OF gold at home ana
the stoppage Of investments OF foreign capital
as well as the return OF our securities already
sold abroad and the high rate of foreign ex-
change which induced the shipment OF our
gold to be drawn against, as a matter of pecu-
lation.
DEPLEE 9N of THE REVENUE
In consequence &c tbese conditions the gold
reduced to g rs aaving lost more ore than
3l000000 duria toe preceding nihe months.
or since April ts8 rs replenishment being
necessary, aao ac other taaanef q accomplish
ing II being possible resort WAS had to the
issue and sale - bonds provided FOR by the re-
sumption act q ts45
THE sALn an BoEDs.
Fifty millions OF these gonas were sold yield
ing S5s 633 ,295s ~ which @s added to the re-
serve fund Of gold taen An0aa8 As a result of
this operation this reese kryp Witch had suffered
constant and large lhdrs as q the mean
time. stood, on PC oth ds If March, 1894, at
the sum OF sl0T $50 s0s Kfta}anietiun was how
ever, Immediately the Arefter 80 accelerated
that on IN, the 3ota day q kJae, 1921 It had fallen
than 24,000.00 iu i've months. and dropping
slightly below its sittTtl0n when the sale Of
soO0o,oOO IN bonds wals Elected Tor its replen-
Shment. IhAs dela&eSed coaoition grew
worse and on The 24tns Ay of November 1894
OIL.
SECOND BOND SALE
1t became necessary to again strengthen it,
This was doue bN another sale of bonds
amounting To e51W0009, from Which there was
realized s5s,ois o9 With which the fund was in
creased TO Sili,l42 OIL on the 9TH day of Decem-
Der, ls9i Again disappointment awaited the
anxious hope for rellcf There vas not even a
lull IN the exasperatlng Withdrawals OF gold.
oh the contrary they grew larger and more
persistent than ever Between the 4th day OF
Deeemoer' 1891 and early in February 1895
period OF scarcely more than two months after
the second reinforcement OF our gold
reserve by the sale of bonds, it had
iost by such Withdrawals more than
SsVVoU0O and had fallen to ISL.
Nearly si9oV0.OOJ had been withdrawn within
tne month Immediately preceding this situa-
tlon. In anticipation of impending trouble |
mad on the 2sth day of January. 1895, addressed
communication TO the congress fully setting
lorth our dllnculties and dangerous position,
aiiu earnestly recommending that authority be
even the secretary of the treasury to issue
ponds bearing low rate OF interest payable
W their terms In gold, for the purpose OF main
tanning salncient gold reserve, and also for
; tne redemption and cancellation of outstand-
;"s bhlVeu states notes and the treasury notes
> ,e Tor the purchase of silver under the law
e ., ,u'" lhls RECOMMENDATION did not. how
ever meet with legislative approval.
IN February, 1895, therefore the situation
%as exceedingly critical. With reserve pc
luouSly low and refusal OF congressional aid
n,nrel!gteing Indicated that the end OF gold pay
nont y oy the government was imminent. The
;iesultS OF prior bond issues had been exceed
l.sIy unsatisfactory and the large Withdrawals
VI sold Immediately succeeding their public
con" "te IA open market gave rise to a reasonable
shSap!cIoh that large part of the gold paid into
Sro eleanufy upon such sales was promptly
SStaMh our again BY the presentation OF United
,n sVen NOTES or treasury notes and found its
10y 20 the nands OF those WAC hal only tenn
bonds. -
THE THIRD BOND SALE.
- Ia Vnls emergency and in view Of its sur
,rounulhg perp.exities, 1t becaTae emit ely APP
tafut 70 those upon whom the struggle FOR
10y 10y was deVolyed, not only that our gold re-
~ must for the third time in less than thir-
se gn ~ months be restored by another issue and
AMI y ponds bearing high rate Of interest
~. oaoly suited TO the purpose. but that