The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1895-12-07

ton was exceedingly critical With a re-
serve perilously low and refusal OF con-
gressional aid, everything indicated that
the end of the gold payments by the gov
eminent was imminent. The results Of
prior bond issues had been exceedingly
unsatisfactory and the large Withdrawals
of gold Immediately succeeding their
public sale in open market gave rise to
a reasonable suspicion that large part
of the gold paid into the treasury upon
such sales was promptly Withdrawn out
again by the presentation OF United states
Staies treasury notes and found It's way
to the hands of those who had only tenn
porarily parted with IT in the purchase OF
bonds.
In this emergency and in view of the
surrounding peplexities, it became en-
tirely apparent to those upon whom the
struggle for surety was deyolved, not
only that our gold reserve must Tor the
third time in less than 10 months be
restored by another issue and sale oil
bonds caring high rate Of interest and
badly uited to the purpose, but that a
plan must be adopted for their DISPOSE
ton promising better results than those
realized on previous sales. An agreement
was therefore made with a number Of
fnanciers and bankers whereby it was
stipulated that bonds described in the re-
sumption dtl Oh lctds Pd9dylt III foii vl
years after date, bearing interest at the
rate of per cent. per annum and amount
ing to about SG2.0000OO, should be eX-
changed for gold receivable by weight,
amounting TO a little more than $4,000
co., This gold was to be delivered in
such installments as would complete its
delivery within about six months from
tho date of The contract, and at least
one-half Of this amount was to be fur
nished from abroad. 1t was also agreed
: v those supplying this gold that during
he continuance of the contract they
you'd by every means in their power, pro-
tect the government against gold with
drawals The contract also provided that
If congress would authorize their issue
bonds payable by their terms in gold ard
bearing interest at the rate of per cent
rer annum might within 10 days be sub
stituted a par for the 4 per cent. bonds
described in the agreement On the day
the contract was made the terms were
communicated to congress by a special
executive message, in which It was stated
that more than Sl6O0O,OOO would be saved
TO the government of gold bonds bearing
per cent. interest were authorized to be
substituted for those mentioned in the
contract
Congress having declined to grant the
necessary authority TO secure this say
ing the contract, unmOdifed, was car
ried out, resulting in a gold reserve
amounting to Sl07. 81, $50 on the eight day
of July. 1895. The performance of this
contract not only restored the reserve
but checked for a time the withdrawal OF
gold and brought on a period of restored
confidence and such peace and quiet in
business circles as were of the greatest
possible benefit in every interest that af-
fects our people. l have never had the
slightest misgiving concerning the wis
Of on
and am quite willing to answer for my
full share of responsibility for its promo
ton. ! believe l averted a disaster, the
imninence of which was fortunately moi
at the time generally understood by oul
people. Though the contract mentioned
stayed for a time the tide of gold with
draWals its good results could not be
permanent. Recent Withdrawals have re-
duced the reserve from S107, 671, $50 on the
Sth day of July, 1885, to S79, 1888 $50. How
long il viii remaD large enough to render
its increase unnecessary is only a matter
of conjecture. though quite large with
draWals for shipment i'm the immediate
future are predicted in well informed
quarters. About $16 600, 600 has been with
drawn during the month of Novembe
A GREAT OUTFLOW.
The foregoing statements of events and
conditions developed the fact that after
increasing our Understanding bonded
Indebtedness more than S162, 600, 900 to save
our gold reserve, we are nearly where we
started, having now in such reserve $79, >
33<956, as against 500, 1887 in February,
1Sk when the first bonds were issued.
The amount drawn from the treasury ap-
pears very large, as we gather from the
facts and figures herein presented. 1t
actually was much larger, considerable
sums having been acquired b. the treas
urS-. within the several periods stated
without the issue of bonds.
On the 2Sth of January, 1895, it was re-
ported by the secretary OF the treasury
that more than SIP, 100000 of gold had
been withdrawn for boarding or shipment
during the year preceding. He now re-
ports that from January ], 1879 to July IA
1890 period of more than II years, only
a little over SIS 100000 was Withdrawn
and that between July II, 1890, the date OF
the massage OF the law for an increased
purchase of silver and the first day oil
December, 1895, or within less than five
and half years. there was Withdrawn
nearly sS75, Oee coo, making total OF more
than S0S,0O0,O00 drawn from the treasury
in gold since January ], 1873, the date
fixed in 1875 for the retirement Of the
United States notes.
Nearly SS27. 10000 of the gold thus with
drawn has been paid out on these United
States notes and yet every one Of The
pviu,yJ1NJt Is SUN uAttdltGlltu ana READY
to do service in future gold depletions
More than S76,OO0O0O in gold has sine,
their creation IL 1890 been paid out from
the treasury upon notes given on tn,
purchase OF silver by the government
ana yet the whole amount of S153, 600 900
except little more than S16,O00,OO0 which
have been retired by exchanges for silve
at the request of the holders, remain out
standing and prepared to join their olde
and more experienced allies in futur,
raids upon the treasury's gold reserve
II other words the government hai
paid in gold more than nine-tenths o
its United States notes and still owe
them all. It has paid in gold about one
half OF its notes given for silver purchases
without extingushing by such paymen
one dollar of these notes. When adde,
to all this we are reminded that TO CARR
on this astounding financial scheme tn,
government has incurred a bonded in
debtedness of s95, $4,000 in establishing
gold reserve and of Si62, 315 400 in effort
to maintain it, that the annual interes
charges on such bonded Indebtedness il
more than 81 000,0 600, that a continuance
in our present course may result in fur
Their issues, and that we suffered or ar
threatened with all this for the sake O
supplying gold for foreign shipments o.
facilitating its boarding al home, a situa
ton is exhibited which certainly ought t
arrest the attention and provoke immedi
ate legislation for its relief
THE ONLY RENEnY FOR THE Evsl
President Cleveland says Greenback
Should Be Retired.
am convinced the only thorough AM