The daily morning journal and courier., 1895-12-04

bonds provided by the resumption act of 1875, Fifty millions of these bonds were sold, yielding $5,6SS, ,2a5u, which was added to the reserve fund of gold
 then on hand. As @ result of this ope- ration this reserve, which had suffered constant and large withdrawals in the meantime. stood on the sixth day of March, 1894, at the sum of S1O7, 446,S02, It's depletion was, however, immediate ! ly thereafter so accelerated that on the
 thlrtieth day of June, 1894, it had fal- len to S64,S75, O25, thus losing by with drawals more than $42,OOO,0OO In five months and dropping slightly below it's situation when the sale of S50,000.000 in bonds was affected for its replenish- ment, This depressed condition grew worse, and on the twenty-fourth day of November, 1894. our gold reserve being reduced to 57,S69,701, it became neces- sary to again strengthen 1t. This was done by another sale of bonds amount ing to $50,O00, ,O00 from which there was realized S5S, ,5SS, BOO, with which the fund
 was Increased to sill, 142, 031 on the fourth day of December, 1894
 | Again disappointment awaited the anxiously hoped for relief. There was not even lull in the eXasperatng withdrawals of gold. On the contrary, they were larger and more persistent than ever. Between the 4th day of December, 1894, and early in February 1895, a period of scarcely more than two months, after the second reinforce ment of our gold reserve by the sale of bonds, it had lost by such withdrawals more than $69 100000. and had fallen to l $41, 34O,1S1. Nearly $43O0O,000 had been withdrawn within the month immedi- ately preceding this situation.
 In anticipation of impending trouble, I had, on the 2Sth day of January, 1895, addressed a communication to the con- gress fully setting forth our difficulties and dangerous position, and earnestly recommending that authority be given the secretary of the treasury to issue | bonds bearing a low rate of interest, payable by their terms in gold. for the purpose of maintaining g. sufficient | gold reserve and also for redemption l and cancellation of the outstanding United States notes and the treasury notes issued for the purchase of silver under the law of 1890. This recommen- dation did not, however, meet with leg islative approval. In February, 1895, therefore, the situation was exceeding ly critical. With a reserve perilously low and a refusal of congressional aid everything indicated that the end of l the gold payments by the government was imminent The results of prior bond isues had been exceedingly un- satisfactory, and the large withdraw als of gold immediately succeeding their public sale in open market gave rise to a reasonable suspicion that a large part of the gold paid into the treasury upon such sales was promptly with drawn again by the presentation of United States notes or treasury notes and found it's way to the hands of those who only temporarily parted with it in the purchase of bonds. In this emer- gency, in view of it's surrounding per- plexities, it became entirely apparent | to those upon whom the struggle for | safety was devolved not only that our gold resereve must, for the third time | in less than thirteen months, be re- stored by another issue and sale of bonds bearing a high rate of interest and badly suited to the purpose, but l that a plan must be adopted for their disposition promising better results than those realized on previous sales. An agreement was therefore made with 9 number of financiers and banks whereby 1t was stipulated that bonds described in the redemption act of 1875, payable in coin thirty years after their | date, bearing interest at the rate of l four per cent per annum, and amount ing to about $62, ,000,0 900, should be ex- changed for gold, receivable by weight, amounting to a little more than $65, 100000 This gold was to be deliv- cred in such instalments as would com plete it's delivery within about six months from the date of the contract, and at least one half of the amount was 1 to be furnished from abroad. It was also agreed by those supplying this 1 gold that during the continuance of the l contract they would by every means in their power protect the government against gold withdrawals. The con- tract also provided that if congress would authorize their issue, bonds pay abla by their terms in gold and bear | ing interest at the rate of three per cent per annum might within ten days be substituted at par for the four per cent bonds described in the agreement.
 On the day this contract was made it's terms were communicated to con- gress by g. special executive message, | in which it was stated that more than sixteen millions of dollars would be saved to the government if gold bonds bearing three per cent interest were authorized to be substituted for those mentioned in the contract. The con- gress having declined to grant the necessary authority to secure this sav- ing, the contract, unmoditied was car ried out, resulting in a gold reserve amounting to $107, ,571 ,230 on the Sth day of July, 1895 The performance of this contract not only restored the re- serve, but checked for a time the with. drawals of gold and brought on a pc riod of restored confidence and such peace and quiet in blisness circles as were of greatest public value to every interest that affects our people. have never had the slightest misgiving con. cerning the wisdom or propriety oi this arrangement and am quite willing to answer for my full share of respon- siJility for its promotion. I believe ii averted a disaster, the imminence ot which was, fortunately not at the time 1 generally understood by our people.