Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-12-05

uempuon ana 10 pay without acqulttancc.
There had been issued and sold $685.
100000 of the bonds authorized by the
redemption act Of 1876, the proceeds OF
which, together with other gold in the
Treasury, created gold fund deemed
sufficient TO meet the demands which
might be made upon it for the redemption
of the outstanding United States notes
This fun, together with such other gold
as might be from time to time in the
Treasury ayilable for the same purpose
has been since called our gold reserve,
and s1O0.0O0,00O has been regarded as an
adequate amount to accomplish Its OBJ.
tect. This fund amounted on the first
day of January. 1879. to l1i.ls3, $50, and
though thereafter constantly huctuating
1t did not fall below that sum until July
1892. In April. 1893, for the first time
since Its establishment this reserve
amounted to less than 500 00O, 900. CON
tanning at that date only s97.O11 $3.50.
In the meantime, and in July 1890, an
act had been passed directing larger gov
Ornamental monthly purchases OF silver
than had been required under previous
laws, and providing that In payment for
such silver Treasury notes Of the United
States should be issued payable on de-
mand in gold or silver coin at the dlscre-
tion OF the Secretary Of the Treasury. II
was, however, declared in the act to be
The established policy of the United
States to maintain the two metals on
parity with each other upon the pres
ent legal ratio or such ratio as may
be provided by law"
In view Of this declaration II was
deemed permissible for the Secretary Of
the Treasury to exercise the discretion in
terms conferred on him, by refusing to
pay gold on these notes when demanded
because by such discrimination in favor
of the gold dollar the so-callrd parity Of
the two metals would be destroyed, and
grave and dangerous consequences would
be precipitated by affirming or accentuat-
ing the constantly widening disparity be-
tween their actual values under the exist
ing ratio.
1t thus resulted that the Treasury notes
issued in payment Of silver purchases UNI
der the law of 1890 were necessarily
treated as gold obligations, at the option
Of tho holder. These notes on the first
day OF November. 1893. when the law
compelling the monthly purchase of silver
was repealed, amounted to more than
SllJ 0O0 The notes OF this description
nov outstanding added to the United
States notes still undiminlshed by re-
demption or cancellation. constitute
volume OF gold obligations amounting TO
nearly s5OO,OO0,OOO, These obligations are
the Instruments. which, ever since we
have had gold reserve. have been used
to deplete 1t. The reserve, as has been
stated. had fallen in April 1893 to
sS7.011,SS 1t has from that time to the
present. with very few and unimportant
upward movements, steadily decreased ex-
cepting as 1t has been temporarily repien-
ished by the sale OF bonds.
Among the causes for this constant ana |
uniform shrinkage in this fund may be |
mentioned the great falling off OF exports |
under the operation OF the tariff law until |
recently in force which crippled our ex-
change Of commodities with feSeign nations
and necessitated TO some extent the pay
ment Of our balances in gold; the unnatural !,
Of silver into our currency and the
increasing agitation for its free and un-
limited coinage, which have created appre-
hension as to our disposition or ability to
continue gold payments; the consequent
boarding Of gold at home and the stoppage
OF investments Of foreign capital as well as
the return Of our securities already sold
abroad; and the high rate OF foreign ex.
which induced the shipment of our
gold to be drawn against. as a matter of
speculation.
THE FLUcTuATINe GOLD RESERVE.
In consequence Of these conditions, the
gold reserve on the last day of February.
1914 was reduced to &65. 43S, s77, having lost
more than s3l 900 O0O during the preceding
nine months, or since April. 1898 Its re-
being necessary, and no other
manner Of accomplishing 1t being possible,
-esort was had 10 the issue and sale OF |
bonds provided for the resumption act Of |
1915, Fifty millions n these bonds were |
sold, yielding SIS 633 2N57l. which was |
added to the reserve fund Of gold then on |
hand, AS a result of this operation this re-
serve, which had suffered constant and |
large Withdrawals in the meantime. stood |
on the sixth day Of March. 1884 at the sum |
of SlO7 ,446. S02. Its depletion was, however |
Immediately thereafter so accelerated that |
on the Both day Of June 1894, it had fallen |
to S6i ,S73O25. Thus losing by Withdrawals
more than s420OO,OOO, in five months drop
ping slightly below its situation when the |
sale OF $50 900, 900 in bonds was effected for
Its replenishment This depressed condi- |
tion grew worse, and on the cath day of
November, 1894 our gold reserve being re-
duced to S57 ,669,701, it became necessary
TO again strengthen It.. This was done by |
another sale Of bonds amounting to $50, 000,- |
900 from which there was realized S5s.-
53S 800, with which the fund was increased
to Sill ,l42,021 on the 4th day of December, |
1884. Again disappointment waited The