The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-12-04

|
cording especial advantages to favor
| ttes. and which, while encouraging our |
| intercourse and trade with other ma
| lions. recognizes the fact that Ameri-
| can self-reliance, thrift ana ingenuaty
can build aIp our countrys industries
! and develop its resources more surely |
than enervating paternaism
The compulsory purchase and COIN
age of silver by the government, un-
checked and unregulated by business
conditions and needless OF our currency |
needs, which for more than nIteen
| years diluted our circulating medium
! undermined confidence abroad in our
financial ability and at last culmlnated
! dn distress and panic at home, has peen
recently stopped by the repeal OF laws
| which forced this reckless scheme upon
| the country. The things thus accom-
| plished, notwiths tanding their extreme
Importance and beneficent effects, ran
far short of curing the monetary eVlIs
from which we suffer as a result OF
long indulgence in ill-advdsed financial
expedients. The currency denominateu
! United States notes and known as
| greenbacks was issued in large Voiumes
during the late civil war and was IN
tended originally to meet the ex1gencles
of that period.
AS TO GREENBACKS AND THE
RESERVE.
\. 1t will be seen by reference to the
debates in congress. at the time the
laws were passed authorizing the issue
of these notes. that their advocates de-
clared they were intended Tor only
temporary use and to meet the emer-
gsncy of war. In almost II not ALL
the laws relating 10 them some provls-
ion was made contemplating their vol
untary or compulsory retirement
Large quantities of them, however,
were kept on foot and mingled WIN
the currency of the country, 50 that at
the close of the year 1874 they amount
ed to 1881, 1898, 073. Immediately atter
that date, and in January, 1919, law
was passed providing for the resump-
ton of specie payment, by whlon the
secretary Of the treasury was required.
whenever additional circulation was IS
sued to national banks, to retire united
States notes equal In amount 10 50 per
cent of such additional national pank
circulation, until such notes were re-
duced to $500, 900, 900. This law further
provided that, on and after the first
day of January. 1879. the Untted states
notes then outstanding should De re-
deemed in coin. and in order 10 provide
and prepare for such redemption. the
secretary of the treasury was author-
lied not only TO use any surplus reve-
nues of the government. but TO issue
bonds of the United States and dispose
. of them for coin. and TO use the pro-
, ceeds for the purpose contemplated Dy
the statute.
In May, 1873, and before the date
thus appointed for the redemption and
, retirement of these notes, another stat
ute was passed forbtdding their FUR
, Their cancellation and retirement. some
of them had, however, been previously
/ redeemed and Cancelled upon the issue
of additional national bank circulation
as permitted by the law of 1873. 50 that
the amount outstanding at the time OF
: the passage of the act forbiddlng tneir
further retirement was $3i6.6S1,Ol6. the
r law of 1878 did not stop at distinct pro-
e hfbition but contained, In addition, the
: following express provision: And when
: any OF said notes may be redeemed or
!, ! be received into the treasury under
q another law from any source whatever
), and shall belong to the United States,
: they shall not be retired, cancelled or
a destroyed. but they shall be issued and
.s maid out again and kept In circuia ton.
n This was the condition of affairs on
e the first day Of January. 1879. which
n had been fixed upon four years before
e as the date for entering upon the re-
, demption and retirement OF all these
~ notes. and for which such abundant
n means had been provided. The govern
5 ment was put in the situation of owing
a to the holders of its notes debts pay
i able in gold on demand, which could
e neither be retired by receiving such
II notes in discharge of obligations due
: the government, nor cancelled by ac-
a tual payment in gold. II was forced TO
/ redeem without redemption, and to pay
v without acquittance.
/ WHEN THE RESERVE FUND
y STARTED
: There had been issued and sold $685.
J. 800 900 of the bonds authorized by the
l. resumption act of 1875, the proceeds OF
It which, together with other gold in the
s treasury, created a gold fund deemed
v sufficient to meet the demlnds which
" might be made upon 1t, for the re-
n demption of the outstanding United
4. States notes. This fund. together with
e such other gold as might be from time
D. to time in the treasury available FOR
" the same purpose. has been since called
/ our gold reserve and 500. 100000 has
l. been regarded as an adequate amount
= to accomplish Its object. This fund
= amounted, on the first day of January,
l. 1879 to $114,193, 800, and though there
II after constantly fuctuatlng. 1t did not
he fall below that sum until July, 1892.
lie In April, 1893 for the first time since
ID its establishment, this reserve amount
= ed to less than 800. 900 900. containing
N at that date only $97,0ll.S $50. In the
,e meantime. and in July, 1890, an act had
been passed directing larger govern
n mental monthly purchases OF silver
! than had been required under previous
Is laws, and providing that in payment
II for such silver treasury notes OF The
IS United States should be issued payable
y on demand in gold or silver coin al rhe
10 discretion of the secretary OF the treas
,e ury. 1t was. however, declared in the
D. act to be with the established pclicy
T. of the United States to maintain the
E. two metals on a parity with each otneI
E. upon the present legal ratio. or such
h ratio as may be provided by law
r In view of this declaration IL was not
$. deemed permissible for the secretary
I'd of the treasury TO exercise the discre-
OF ton in terms conferred on him by re-
a fusing 10 pay gold on these notes wher
u demanded. because by such dsscrlmlna-
Sc ton in favor OF the gold dollar the so.
l. called parity OF the two metals would
AZ be destroyed and grave and dangerou.
es consequences would be preclpitased by
Re affirming or accentuating the constant.
ut ly widening disparity between their &C
tual values under the existing ratio. l
thus resulted that treasury notes Is
sued in payment OF silver purchases
r. under the law of 1890 were necessarily
~ @roafad crOl1 Ohlfp~a lions ~ fina on.