Courier Democrat. (Langdon, N.D.) 1891-1920, 1895-12-12

Si sbrnary, 1866. thsrrfors. rs situa ton was
4 1lssly critical. with resssys psrilousiy
ssdcated that lie nd x soia pssn.ats si by
syeFnment was Imminent. The results Of
i sfs eooa Issues had been excessively un.attss
iaeely succeeding their public sale III open
- eaye rise TO 4 reasonable suspicion that
slch sales was promptly drawn out a nsain
\ the presentation OF United states notes or
stxssslty notes, and found Its way into the hands
vi - pufchase Of bonds. -
~ snls emergency. aud In view Of its surround
Reap,exlty. ~ became entirely apparent to
tHg upon whom the struggle for safety de-
I ysAS3a not only TINT our gold reserve must, for
ltleaanird time IN less than thirteen months, be
seesMea " another issue aud s,le OF bonds bear
IT, nigh rnte OF interest and badly suited to
but that plan must be adopted for
promising better results than
swa.S therefore mnde win number. Of financiers
eng bankers Whereby It was stipulated that
Pay1Me IN coin thirty years after their date
peanng interest at the rate OF 4 per cent per
( a anns,9, ana amounting to about q
Gn0NlQ pc exchanged for gold recei ,able by weight
s snSItntihg TO little more than SOS, 600, 600.
lais gold was to be delivered in such INSTALL
about six months from the date from the con
tsscLs 2tsss6t lest onehalf Of the amount WINS
1 S e IN ~ nom abroad. It was also agreed
Inusnce Of the contract they would, by every
means An their power, protect THE government
Is HeGssSssIt SViu WlGuuF0W8l0.
FWoMu Autnorize their issue, bonds payable by
tnelr terms. In gold, and bearing interest at the
days. be substituted at pat for sh The Ilt men
cent Mnds described In the agreement. On the
ca snis contract was made Its terms were COM
nleniltasted 70 congress- by q special executive
message IN which 1t was stated that more than
loss IVY would be saved to the government
authorized to be substituted for those mentioned
~ ~, TIE contract;
Congress having determined to grant the neces.
tract, unmodified was carried out resulting in a
sad , reserve :, snoaHtnE e On The
contract not only restored the reserve hut
Gnecked for time the Withdrawals of gold and
s,o,, on period Of restored confidence and
Of the greatest possible value to every interest
TINT Affects our people. i have never had the
propriefy OF this arrangement, and am quite will
Ing 70 answer for my full share of responsibility
i believe 1t ayerted a. disaster, the imminence
Of which was fortunately not ut the time gem
eraliy understood ~ by our people.
Though the contract mentioned staid for a
suits could not be permanent Recent withdraw
"a the Sth day of July, 1895, to $40, 33a, 06G.
How long It's will remain large enough to render
csnjecture, though quite large Withdrawals for
alignment in the immediate future are predicted
i, he.S :, About has
The foregoing statement of events and condi-
tions develops the fact that after increasing our
Interest bearing bonded Indebtedness more than
$162 600 O0O to save our gold reserve. we are
nearly where ere We started hay ne n a in y such Re
When q he se bonds eed
Though the amount Of gold drawn from the
treasury appears to be very large, as gathered
having, been acquired BY the treasury within the
several periods stated, without the issue Of
ca the 2sth Of January. 1895, Il was reported rte
BY the secretary OF the treasury that more thar
boarding or shipment during the year preceding
He now reports that from January 1, 1879, t
y ONLY 1880 pe e1es e %Sre asn Mt
| drawn, and that between July IA, 1890, the datt
Of the passage Of the law for an increased pur
| 1895, or within less than five and a half years
there was withdrawn nearly 1910 goo. 900, max
4 from the treasury in gold since Jan. !, 1879 thu
date fixed In 1875 for the retirement of the Untet
Nearly $s17, 100000 of the gold thus with
drawn has been paid ont on these =. United State
notes; and yet every one of the $346 900 600 i
i gold depletions. More than $4,000, 900 in golt
has since their creation in 1880 been paid gu
from the upon the notes given ,n on tn tn
| the whole, amounting to $3.50, 200. 900. except I
| little more than SIG, 0OO which have bee
I / "
the holders, remains outstanding and prepared t
/ join their older aid Lore experienced allies Il
| future raids upon the treasury's gold reserve.
more than ninetenths Of its United States note
1 and still owes them all. It has paid In gol
abosss ,thn,t e.t s by such paymen
| one dOlarsOf these notes. X
When added to all this We are reminded tina
government has incurred a bonded indebtedness
Of sos ,5OO: 900 In establishing gold reserve
q in efforts aoTss to maintain aah hns
Indebtedness is more than $1,000 900; that
continuance in orr. present course may result In
Further Bond Issues.
and that we have suffered are threatened Will
all this for the sake Of supplying gold for foregl
shipment or facilitating its boarding at home,
situation Is exhibited which certainly ought to ar
| rest attention and provoke immediate Legislative
relief.
ment and cancellation Of our United States notes
comclrnly called greenbacks and the oatstandinl
| ment of silver purchases under the act of 1890.
| believe this could be quite readily accomplshet
bonds Of small rs we'll as large denominations
bearing a low rate of interest. They should b.
bonds thus t snsr Ia
well postponed to period far removed fron pres
ent financial burdens and perplexities, when, will
increased prosperity ana resources they wouM D
To further insure the cancellation Of these notes
and also t. provide WAY 6y xhsh goa ay
the plan should be authority given to the secre
tary Of the treasury to dispose of the bonds abroad
for gold If necessary, to complete the contemplate
ed redemption and cancellation. permitting him t
use the proceeds of such bonds to take up and can
eel any OF the notes that may be In the treasury
| or that may be received by the government OF
| any account.
| The Increase OF our bonded debt involved in Thu
ban would be amply compensated by renewet
activity and enterprise In nil business circles, thu
restored confidence at home, the rinst0ted faith
our monetary strength abroad and the Stimulation
Of every interest and industry that would follow
| the cancellation Of the gold-demand obligations
now ltfticting MS.
| In any event the bonds proposed would stan,
| for the extinguishment of troublesome indebt
| edness, while In the path we now follow Their,
turks the menace. Of unendng bonds, with our in
| debtedness still undischarged and aggravated ii
| this Indebtedness would not equal in amour
| those from which we have been relieved sine,
1884 by anticipation and payment beyond the re
| quirements or the sinking fund out OF our sur
| plus revenue
The currency withdrawn by the retirement o
! the United States notes and treasury notes
| amounting to probably less than $4S6, DOC, OOo
| might he supplied by such gold us would be usct
on the retirement by IN increase In the circnla
| ton Of cur national banks. Though the aggre
i gate capital of those now In existence amounts
to more than S664, 000, 900, the outstanding circn
l iation bs seh OH bond security, amounts to onl!
about 500, OlO 900. They are authorized to issn
notes amounting to 30 per cent OF the bond:
deposited to secure their circulation. but in NJ