The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-12-10

pose, but that a plan must be adopted
Tor their disposition promising better
results than those realized on previous
sales. An agreement was therefore
made with a number of f1nancjers and
bankers whereby it was stipulated that
bonds described in the resumption act
OF 1875. payable in coin thirty years
after their date, bearing interest at the
a OF 4 per cent. per annum, and
amounting to S62, 600 900 should be eX-
changed for gold receivable by weight
amounting to little over $65, 000, 600
thls gold was to be delivered in such
1nstallments as would complete its de-
liVery within about six months from
q date Of the contract and at least
one-halt of the amount was to be fur
nlsned from abroad. 1t was also agreed
Dy nos supplying this gold that dur
ing q continuance of the contract
tney would by every means IN their
power protect the government against
gold withdra walls.
Inc contract also provided that if
congress would authorize their issue,
bonds payable by their terms in gold
ana gearing interest at the rate of 3
per cent. per annum might within ten
days De substituted at a for the 4 per
cent. bonds described in the agreement.
On the day this contract was made
It's terms were communicated to Con
gress by q special Executive message.
IN which I6 was Stated that more thar
sixteen millions of dollars would be
saved to the government if gold bonds
bearing 3 per cent. interest were au.
thorized to be substituted for those
mentioned in the contract.
The Congress having declined to grant
the necessary to secure this saving, the
contract uEmOdli d, was carried out.
resulting in q gold reserve amounting
to SlO7 571, $50 on the 9Th day of July,
1895. The performance of this contract
not only restored the reserve, but
checked for a time the Withdrawals of
gold and broughtOn a period of restored
confidence and such peace and quiet in
business circles as were of the greatest
possible aus that affects our people
HIS SHOULDERS BROAD ENOUGH"
AS to the slightest miegiving con
corning the wisdom or propriety of
this arrangement, I am quite willing to
answer for my full share of the respon-
slbility for it's promotion. / believe it
averted a disaster, the imminence of
which was. fortunately, not at the
time generally understood by u peo-
pie.
Though the contract mentioned
stayed for a time the tide of gold with
drawal, it's good results could not be
permanent.
Recent Withdrawals have reduced
the reserve from $1O7, 571, $50 on the
How long 1T will remain large enough
t0 rondor tic inopoooo T1nnoooooo~- 10
only a matter of conjecture, though
quite large Withdrawals for shipment
In the immediate future are predicted
in we'll informed quarters. About S16.
600, 900 has been Withdrawn during the
month of November,
The foregoing statement of events of
conditions develops the fact that after
increasing our interest bearing bonded
indebtedness more than 1852, 600, 900 to
save gold reserve we are nearly
where we started. having now in such
reserve $40 333. 966, as against $65 438.
377 in February, 1894, when the first
bonds were issued.
Though the amount of gold drawn
from the treasury appears to be very
large as gathered from the facts and
figures herein presented, actually was
much larger, considerable sums having
been acquired by the treasury within
the several periods stated without the
issue of bonds. On the 2Sth of January,
1895, it was reported by the Secretary
of the Treasury that more than $172,
600, 600 gold had been drawn for hoard
Jog OF shipment during the year pre-
ceding. He now reports that from
january l, 1879, to January IA, 1890, a
period of more than eleven years, only
a little over 1923, 600, 900 was withdrawn,
and that between July IA, 1890, the
date of the passage of the law for an
increased purchase of silver, and the
first day of December, 1895, or within
less than five and a half years, there
was Withdrawn nearly 1875, 600, 900,
making a total of more than $403, 0O0,-
coo drawn from the treasury in gold
since January l, 1879, the date fixed
in 1875 for the retirement of the United
States notes.
Nearly 1927, 900, 900 of the gold thus
Withdrawn has been paid on these
United States notes, and yet every one
of the 1916, 600. 600 is still uncancelled
and ready to do service in future gold
depletiOns.
More than SIG, 900, 900 in gold has
since their creation in 1890 been paid
out of the treasury upon the notes
given on the purchase of silver by the
government, and yet the whole, amount
ing to $155. OOO 900, except a little more
than SIG, 600, 900 which have been re
tired by exchanges for silver at the re
quest of the holders, remains outstand
ing and prepared to join their older
and more experienced allies in future
raids upon the treasury's gold reserve
In other words, the government has
paid in gold more than nine-tenths of
It's United States notes, and still owns
them ali. 1t has paid in gold about
one half of it's notes given for silver
purchases without extinguishing by
such payment one dollar of the notes.
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