The Portland daily press., 1895-12-04

penses has not entered into the estima-
tion of our solvency. OF course the gen
eral state of our funds exclusive Of gold
was entirely immaterial to the foreign
creditor or investor. His debt could only
be paid in gold, and his only concern
was our ability to keep on hand that
kind of money. On July 1, 1899. more
than a year and a half before the first
bonds were issued to replenish the gold
reserve. there was a net balance in the
treasury, exclusive OF such reserve, OF
less than $l3, 900, 600; but the gold re-
| serve amounted to more than S114, QUO. 600.
which was the quieting feature of the
situation. 1t was when the stock of gold
began rapidly to fall that fright super
vened and our securities held abroad
We're returned for sale and debts
abroad were pressed for payment In
gold and other unfavorable indications
caused restlessness and fright among our
people at home. Thereupon the general
state of our funds, exclusive of gold, be-
came also material to them, and they
outdrew gold from the Treasury for
| boarding against all contingencies. This
| is plainly shown by the large increase
which was retained by our own people
as time and threatening incidents pro-
crossed. During the fiscal year ending
June 30. 1894, nearly $35, 000 900 in gold
was withdrawn from the Treasury and
about s77, 900, 600 was sent abroad, while
during the fiscal year ending June 30,
1895, over S117, 600. 600 was drawn out of
which only about $685. 600. 900 was SHIPPED,
leaving the large balance of such with
/ drawals to be accounted for by domestic
boarding.
| Inasmuch as the withdrawal of our
gold has resulted largely from fright,
there is nothing apparent that will pre-,
| TO TIN ~
/ its natural consequences, except such a
change in our financial methods as will
reassure the frightened and make the
desire for gold less intense. It is not
clear how an increase in revenue, unless
it be in gold can satisfy those whose only
anxiety is to gain gold from the govern
ment store. It cannot therefore be safe to
rely upon increased revenues as cure
for our present troubles 1t is possible
that the suggestion of increased revenue
for the difficulties we are considering
may have originated in an intimation or
distinct allegation that the bonds which
have been issued ostensibly to replenish
supply insufficient revenue. Nothing
can be further from the truth. Bonds
were issued to obtain gold for the main
| tenance of our national credit. AS has
been shown, the gold thus obtained has
been drawn again from the treasury upon
| u. .. Notes and treasury NOTES. Inns
operation would have been promptly
prevented if possible; but these notes
having thus been passed to the Treasury,
they became the money of the govern
ment, like any other ordinary govern
ment funds, and there was nothing to do
but to use them in paying government
expenses when needed. All no time when
bonds have been issued has there been
any consideration of paying the expenses
OF government with their proceeds
There was no necessity to consider that
question. At the time of each bond
Issue we had safe surplus in the treas
ury for ordinary operations. exclusive
OF the gold in our reserve. In February,
1894, when the first issue of bonds was
made. such surplus amounted to over
SIS, 000 in November, when the second
issue was made, it amounted to more
than $40, 900. 600, and in February, 1895,
when bonds for the third time were
issued, such surplus amounted to more
than 500. 600, 900. 1t now amounts to
$3.50. 72O, 42o. 30 Besides all this, the Sec
rotary of the Treasury had no authority,
whatever, to issue bonds to increase the
ordinary revenues or pay current ex-
penses
l cannot but think there has been some
confusion of ideas regarding the effects
Of the issue OF bonds and the results OF
the withdrawal of golc.- IT was the lat