The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1895-12-06

order to provide and prepare for such re-
demption the secretary OF the treasury was
authorized not only to use any surplus reve-
nues OF the government, but to issue bonds Of
the United States and dispose OF them for
coin and to use the proceeds for
the purposes coltemDlate1 by the statute
In MAY. 1873, and before the date thus appoint
ed for the redemotion an j re irement Of these
notes, another statue was pasSe forbidding
their further cancellation and retirement
Some of them had, however been previously
redeemed and Cancelled upon the issue of a ldi-
tiOnal national bank circulation. as permitted
by the law of Isl so that the amount out
stan ing at the time Of the D Ige of the act
forbidding their further retirement WIS ST.
tsl,ni6. The law of 1873 dill not stop at dis
tinet prohibition, but contained, in addition,
the following provisions; "And when
any of said notes may be redeemed or
be received into the treasury, under any
law, from any source whatever. and
shall belong to the United States. they shall
not be retired Cancelled. or destroyed, but they
shall be reissued and made out again and kept
In circulation This was the condition of at
fairs on the lst day OF January, 1859, which had
been fixed u Jon four years before as the date
for entering upon the redemption and retire.
ment of all these notes, and for which such
abundant means had been provided. The gov
eminent was put In the anomalous situation OF
owing to the holders Of these notes BITS pay
able in gold on demand. which could neither be
retired by receiving such notes in discharge OF
obligations due the government, nor cancelled
by actual payment in gold. 1t was forced to
redeem without redemption and to pay without
acquittanee
There has been issued and sold S96, 50l 900 of
the bonds authorized by the resumption act
OF 49,, the proceeds of which, together with
the gold in the treasury, created gold
fund deemed sufficient to meet the demands
which nigh be made upon it for the rede mp
tion Of the outstanding United States notes
This fund, sether with such other gold as
might be from time to time in the treasury
available for the same purpose has been since
called our gold reserve and slOD,OlOOO has
been regarded as an adequate amount to ac-
complish its object This fund amounted on
the ist day OF January. 1879. to sll4ieo.l3d
and though thereafter constantly f1uctuating.
it did not fall below that sum in July, 1892 In
April. 1893. for the first time since les estaB-
lishment, this reserve amounted to less than
100000, 900, containing at that date only se7,-
OF $40. In the meantime and in July, 1890, an
act had been passed directing large govern
mental monthly purchases Of silver than had
been required under previous laws and provtd.s
Ing that in payment for silver treasury notes
Of the United States should be issued payable
on demand in gold or silver coin at the discre-
ton OF the secretary OF tho treasury, IL was.
however declared in the act to be the estab-
Hshed policy Of the United states to maintain
the two metals 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
permissible for the secretary OF the treasury
to exercise the discretion in terms conferred
on him by refusing 70 pay gold on these notes
when demanded, because by such discrimina-
ton In favor Of the gold dollar. the so-called
parity OF the two m tails would be destroyed
and grave and dangerous consequences would
be precipitated by affirming or accentuating
the constantly idening disparity between
their actual value under the existing ratio.
These obligations are the instruments which
ever since we have had a gold reserve, have
been used to deplete 1t.
This reserve. as has been sta ted, had fallen
in April 1893 to S97, .3SL 1t has from that
time to the present. with very few and i'm
lortant movem ants steadily decreased except
rs il has been temporarily replentShed BY the
sale of bonds Among the causes for this con-
slant and uniform Sbrinkage in this fund may
ne mentioned the falling of of exports under
he operation of the tariff law until recently in
force, which crippled our exchange of COM
nodities with foreign nations and necesSitate1
20 some extent the payment of our balances In
rold the unnatural infusion of silver into our
currency and the increase in agitation
for its free AMI unlimited coinage
position or ability to continue gold payments,
he CONSEQUENT boarding of gold at home and
he Stoppagc Of investments Of foreign capital
Is well , the return Of our securities already
sold abroad and the high rate of foreign cx-
change. which induce the shipment of our gold
TO be drawn against Us as mater OF spceuia-
ion. In conSeluen :" Ci these conditions the
gold reserve On the lSt day of Fsbru lry, 1894.
vas REDUCED to S5j.4s.375. having lost more
han S3l. Ol0lJ during the preceding nine
months or since Ap.il. lSgi It's repieuishr11lt
Deiu. neces sary ant no other n in?ar OF ac
,ompiish.rg ii being possible. rcso-s was
mad to thc isS"c LID S.lc OF bonds p.o-
.ided for by the resumption oct Of 1870
Fifty millions Of these bonds were sold, yield
ing $50 6S3. ~, which was added TO the re
serve fund OF gold then on hand. As result
OF this operation this reserve. which had SUI.
fered constant and large Withdrawals in the
meantime. stood on the 9th day of March. 1894,
at the sum of sl07. i46.sG. Its depletion was,
however. Immediately thereafter SO accelerated
that on the 18th dav of June, 1884, IL had fallen
to S64 .sT302', thus losing by withdrawals more
than 81, O0.Oo In five months and dropping
slightly below this situation when the Of
0 O0o, 900 in bonds was effe-ted for It's redemp-
tion. This depressed condition grew worse.
and on the 9th day OF November, 1894,
our gold reserve was drained 10 ~. 69.Oi.
II became ncceS Sary to again strengthen II.
This was done by another sale OF bonds
amounting to $500 600. from which there was
realized S5s. sSs 800 with which the fund was In
creased TO Sill ,0i2.G2l on the ith day OF De-
cember. 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 +th
day OF December, 1894, aud early in Febr u7ry,
1895, a period OF scarcely more tran two
months after the second reinforcement of our
gold reserve by the sale OF bonds il had lost
by such Withdrawals more than 5000 .0O0 and
had fallen 10 al 1871. Nearly si3 100 0I had
been withdrawn within the month Immediately
preceding this situation
In this emergency, and In view OF its sur
rounding perplexity. IL became entirely appar-
ent 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 q rate OF interest and badly
suited 10 their purpose. but that a plan must
be adopted for their disposition promising bet
ter results than realized on the previous sales
An agreement. therefore, was made with
number OF dnancierS and bankers whereby
il was stipulated that bonds de-
Scribed in the resumption set OF 1875
payable in coin thirty years after their date.
bearing interest at the rate Of per cent per
annum and amounting 20 about s62.0OlOOO,
should be exchanged for gold. receivable by
weight. amounting TO little more than s65,-
DO0O0 Its good results could not be perma-
nent. Recent Withdrawals have reduced the
reSar1e from St0- 81 23 IN the &; day of It-ly