The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1895-12-06

time the laws were passed authorizing the
issue OF these notes that their advocates de-
clared they were intended for only temporary
use and to meet the emergency OF war. In
almosti II not all the laws relating TO them some
provision was made contemplating their volun.
tary or compulsory retirement. A large guam.
mingled with the currency of the country so
that at he close OF the Year ls'+ they amounted
The president then gives a history of the
laws provid ng for the resumption OF specie
payments and the authority TO issue bonds Tor
purpose. and that and the law forbidding the
furth.r cancellation and retirement OF the
greenbacks passed in ls7o
Redemption That Don't Redeem.
The law OF 1873 did not stop at dis tinct pro.
hibition but contained. in add tion, the follow
Ing provision And when any OF said notes
may be redeemed or 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 destroyed, but
sSd nspt Thus %as
the condition OF affairs on the LIST day OF
January: 1873. which had been fixed upon four
yea 8 before as the date for entering upon the
redemption and retirement OF ali these notes,
and for which such abundant means had ben
provided. The government was put in the
anomalous situation OF owing TO the holders or
It's 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 actual payment
in gold. 1t was forced TO redeem without re-
demption and to pay without acquittancs.
Fluctuation of the Gold IL eserve.
There has been issued and sold S95, 900 OF
the bonds authorized by the resumption act Of
1870 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 IL 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 purpose, has been since called our
gold reserve, and SlOO, 100000 has been regarded
as an adequate amount to accomplish its ob.
iect. This fund amounted on the first day OF
January, 1879, to STA. l93, $780, and though there
low that sum until July. 1892. In April. 1897.
for the first true since its establishment, this
reserve amounted to less than $lOO, OU,OOO con-
tanning at that date only $g7 OH $50.
In the meantime and In July, 1890, an act had
been passed directing larger governmental
monthly purchases of silver than had been re-
CURED under previous laws, and providing that
in payment for such silver treasury notes or
the United States should be issued payable on
demand in gold or silver coin at the discretion
OF the secretary OF the treasury. 1t was, how.
ever, 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 present legal ratio, or such ratio may
be provided by law"
In view of this declaration it was not 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 discrimina.
ton IN FAVOR or the gold dollar the so-caileu
parity of the two metals would be destroyed
and grave and dangerous consequences
would be precipitated by affirming
Gr Values nndeE
the existing ratio. 1t thus resulted that the
treasury notes issued in payment of silver pur-
chases under the law Of 1890 were necessarily
treated as gold obligations. at the option of
the holder. These notes on the lst day Of No
vember, 1893. when the law compelling the
monthly purchase of silver was repealed,
amounted to more than $255 10000. The notes
of this description now outstanding added to
the United States still undminished by re-
demption or cancellation constitute volume
Of gold obligations amounting to nearly $780,,
OOO,0O. These obligations are instruments
which, ever since we have had gold reserve,
hwve been used to deplete it.
TIL reserve, as has been stated, had fallen in
April 1893 to $97,0ll $40. 1t has from that time
to the present, with very W and unimportant
upward movement, steadily decreased, except
as it ha> been temporarily replenished by the
sale Of bonds.