The citizen. (Frederick City, Md.) 1895-1923, 1895-12-06

thrift and ingenuity can build up our
countrys industries and develop its re-
sources more surely than enervating
paternalism. The compulsory pur-
chase and coinage of silver by the gov
eminent, unchecked and unregulated
by business conditions and needless of
our currency needs, which for more
than fifteen years diluted our cur
rency medium, undermined confidence
abroad in our financial ability, and at
last eliminated in distress and panic at
home, has been recently stopped by
the repeal of the laws which forced the
reckless scheme upon the country. The
things thus accomplished, notwith-
standing their extreme Importance and
beneficent effects, fall far short of cur
ing the monetary evils from which we
suffer as result of long indulgence in
il-advised financial expedients Thecur-
rency denominated United States notes
and usually known as greenbacks was
issued in large quantities during the
late civil war and was intended origin
ally to meet the exigencies of that
period. 1t will be seen by a reference
to the debates in congress at the time
the laws were passed authorizing the
issue of these notes that their advo-
Gates declared they were for only tenn
porary use and to meet the emergency
of war. In almost if not all the laws
relating to them some provision was
made contemplating their voluntary or
compulsory retirement. A large guam
tity, however, were kept on foot and
mingled with the currency of the coun-
try, SO that at the close of the year
1874 they amounted to s3s1, 999, O73.
Immediately after that date, and in
January, 1875, law was passed pro-
viding for the resumption of specie
payments, by which the secretary of
the treasury was required, whenever
additional circulation was issued to
national banks, to retire United States
notes equal in amount to so per cent.
Of such additional national bank circu-
alton until such notes were reduced to
S3JO,000,000, This law further pro-
vided that on and after the 1st day of
January, 1879. the United States notes
then outstanding should be redeemed
in coin. and in order to provide and
prepare for such redemption the secre-
tary of the treasury was authorized not
only to use any surplus revenues 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 contemplated by the statute.
In May. 1873, and before the date thus
appointed for the redemption and re-
tirement of these notes, another statute
was passed forbidding their further re-
tirement and cancellation. Some of
them had, however, been previously re-
deemed and cancelled upon the issue of
additional national bank circulation.
as permitted by the law of 1875, so
that the amount outstanding at the
time Of the passage of the act forbid
ding their further retirement was
S346, 6s1, 016
Redeemed Without Redemption.
The law of 1878 did not stop at dis
tinct prohibition, but contained in ad-
dition, the following express provision.
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 de-
stroyed, but they shall be reissued and
paid out again and kept in circulation"
This was the condition of affairs on the
LIST day of January, 1879, which had
been fixed upon four years before as
the date for entering upon the redelnp-
ton and retirement of all these notes.
and for which such abundant means
had been provided. The government
was put in the anomalous situation of
owing to the holders of its notes, debts
payable in gold on demand which could
neither be retired by receiving such
notes in discharge of obligations due
the government, nor cancelled by ac-
tual payment in gold. 1t was forced
to redeem without redemption and to
pay without acouittance There had
been issued and sold s95, 800, 900 of the
bonds authorized by the RESUMPTION act
of 1875, the proceeds of which. together
with other gold in the Treasury. ere
ated gold fund deemed sufficient to
meet the demands which mirht be
made upon it for the redemption of the
outstanding United States notes. This
fund, together with such other gold as
might be from time to time in the
Treasury available for the same pur
pose, has been since called our gold re-
serve, and Sl00,000.O0O has been re-
! garded as an adequate amount to ac-
complish its object. This fund amount
ed on the LIST day of January. 1879, to
STA, 193, 800, and though thereafter con-
stantly iuctuating, it did not fall be-
low that sum until July, 1892. In
April, 1893, for the first time since its
establishment, this reserve amounted
to less than 100000, 00O containing at
that date only S97,O11, $3.50. This re-
serve has from that time to the pres
emit, with very few and unimportant
upward movements, steadily decreased,
except as it has been temporarily re-
plenished by the sale of bonds.
Causes of the shrinkage.
Among the causes for this constant
and uniform shrinkage in this fund
may be mentioned the great falling off
I Nn4-