Pine Bluff daily graphic., 1895-12-04


 | hecaln5 necessary to again strengthen 1t E Fms Was done by another sale of bonds Amounting to S3jAN0 G00 from which there was realized Sls 55s, ,5UO with which the fund was cember 1881
 Again disappointment awaited the auxious hope for rali f. There WAS not even a lnii ill the exasperating withdrawals of gold On the contrary, they grew larger and more persist ont than ever Between the llh day of Deeem- ben. 1851, and early in February. lS95, period of scarcely more than two months after the second reinforcement of our gold reserve by rhe sale or pondst 1t had lost by such with drawals more than S69 D1800 and had fallen to S4l ,S4J lsl. Nearly .0g0 had been with arawn within the month immedi tely preced- ing this situation.
 h antlep Aoa of impending trouble l had on the Sth day of January, io95, addressed a Communication the congress fully setting foi th our di1ieulti s and angerous position and earn ly requesting that authority be given the secretary of the try as ny to issue bond drawing a low rate of lntere t. payable hy thelr terms m gold, for the purpose of mtintalnng suticieHe gold reserve, and also tor the re. empti and cancellation of out Standing U nlted Sta6 notes and the treasury notes issued for the ? rchaS3 cf silver under bhe law of 18t1 1his recommendation. how eyer, did not meet with tho legislative ap- Ho oval
 In February 1895, therefore, the situation was exceedingly critical, with reserve peril ensly low and refusal Of congressional aii Everything indicated that the end of gold pay mentS by he government Was imminent. The Results of prior bond issues had been exceed
 
 of gold immediately succeeding the public sale fn open markell gave rise to q reasonable stls- pieion that a large part of the gold pad into inc treasury upon such sales was promptly afaWn out agaln by the presentation or United States notes or treasury notes, and found its Way to the hands 0t those who had only tempo farily parted with 1t in the purchase or bonds ln this emer5eney and in View Of it's surround ing perplexitics 1t became apparent to those upon whom the struggle for sufetF was deyolV- ed not only that our gold reserve must for the third time ill less than thirteen months Dc re torcd by another issue and sale of bonds bearing Il hlgh rate of interest ana badly suited fo the purpose but that plan must be adopted for their disposition promising better results than those realized on previous sales. An Agreement was therefore made with number Of tinaneiers and banlleIs whereby il stipu- lated that bonds of the resumption net of 1875 payable Ill GO Il thirty yearS after dAte, heArhg 1ntercst at the rate of per cent per annum and Amounting to aboat Sti5, B01 Ui0, should te ex Changed for gol r tceiN able by ffeight,am0unt ing to Il little lnafe than $h5, 0OJ60o. This gold was to be delivered ill such insta lments as would complete it's delivery in about six months from the dute of the contract, and at ast onehaf Of the amount to be fur nished rom abroad It wus also agreed by those suppl ying this gold that during the con Enhance ot the contract llfey would by every means in their power protect the government Hgainst god withdrawals.
 The contract also proYldedif congress would authorize the issue Of bonds payable by their terms in gold and bearing interest at the rate of per cent per annum. might within ten days be substituted at par for the per cent bonds describ' | Ill the agreement. On the day this contract made it's terms were com muuleated to congress by special executive message, in which 1t Was stated that more thHn si6,QV0000 would be saved to the government If gold bonds bearing per cent were authorized to be substituted for these mentioned in the contract.
 The congre having declined to take the necessary authority to secure this saving the eentIaet Was carried out resulting in q golI re serve amonn in to slU 17 ,230 on the sth day of July, 95 The performance of this contract nos only restored the reserve but checked for f rgr7f h T on a period of restored confidence and such 3eace md quiet III business circles as were of the greatest possible value to every interest that affects our people have never ha the Slightest misgiving concerning the wis or propriety of his arrang nent and am quite willing to answer for my ful sh gre of respon- slbitY fo il promotion
 I3I believe 1t averted n disaster the imminence Of which was fortunately not at this time gen contract mentioned stayed for time the tide of gold Withdraw l. its good results could not be permanent. Recent withdrawals have re- uueed the reserve from Sl0c5ll ,239, on the 9th day of July ltg5 to s79333,966 How long it Hill remaln largo enough 10 render its increase unnecesIaTy iS only matter Of conjecture, Enough quite large withdrawals for shipment in the immediate future are predicted in all Informed quarters. About 56.0J0,u00 have Der
 The foreign stateme at of events and eondi- lions develop the luet that after increasing our Interest bearing bond indebtedness more than Sl60O0 o0l to save ouI gold reserve we are nearly where We started having HOW i'll such reserve $f9, ,333 966 as against S55 i34, ,31t in February, 1891, when the first bonds were issued Though the amount of gold drawn from the treasury Appears 10 be 1ery large as gathered from the facts and figu es her in presented. it actually was much larger, considerable sums having been aeqlllrtt by The treasury within the sev eral periods stated without the issue of bonds. On Ja uary 2a ls9', It was reported by the secretaIy of the treasury that more than $t72.. OO iUN0 o go had been withdrawn for hoard jug or shipment during the year preceding, lie now reports that from July l. 1>79. to July 1l 1850, period of more than eleven years, olily little over $23 e. A090 was with,lray1 and that between July i4 lS41 the date Of tue pas Sage of the jaw for an increased purchase of KilYer and December ], 1895 or within ] ss than five and half years there was withdrawn nearly S373,Q O0Nr making total of more than { i03t tG4.601 drawu from the treasury il gold since January l. lS,9 the date fixed for the tirement the Un.ted States notes.
 Nearly S3!10a0J9 of the gold thus with drawn has been pnid out on these United States notes. and yet every one of the $l6,000 D90 is stil4 uncGnc led and ready to do service in fuslre gold depletiOnS More than S76.000,- G03 in gold has since their creation in lsa0 been pait put rom tie treasury upon the notes given on the purchase of silver by the govern ment and yet the whole amounting 10 sl55.- 6O0OOo eycep little more than S6oo0 0Q0 Nbich have been retired by exchanges for sil- yer at the request of the holders remains out Standing and prepared to join the 1T older and more expereuced allies iu future raids upon sne treasury 5 gold reserve
 In other words, the government has pnid in gold more than nne-tenths of the United States notss and stil owes th m all It has paid i'll gold about one-halt of its notes given for silver purchases without extingulshlns by such payment one dollar ef the e notcs When added to all this we are reminded that to carry on ths astOun HE financial shemn, the gov ern1nent incurred boadel ind abtednesS of s9) 0 'iJ i'll establishing a gold serve, and of }0,Sl Q i'll eifOr.s to maintain ist that an annual interest charge such bonded indebt- fdness is more than &l Q UO0l a continuance in Dur present course may result in more bonds nd that ws have su1eeet or are threatened with all thia for the sake of supplying gold for fore gn shipment or facilitating it's hoardtng Rl home. u situation Is exhibited whtcn Ger tainly ought | arrest attention and provoke Immediate leg slattve relief.
 am convin ed tae only thorough and prae- fcal remedy for our tren3iei is found in the retireheat aud cLnc=ltts ion of our Un ted statas notes. eommts5fF calIeI greenbacks and the notes issued hS the government in payment of silver purchases u1der the act Of 1e90
 l believe this could be quite readily accom-. plshe by the cha ge of these notes for Gnited States bonds of sma ls well ts large denomi nations. bearipg low rate of interest. They Should be tong term baRaS thus lnf reasing their s,eSrahllitv as investments and b.cAuse their payment could be well postponed to period far removed from present financial burdens and pprplrXitt. when, by increased p osperity and resources theT could b. Ii ore tHsl met To further insure the canceifhtion oi these notes ant also provide Il way by which gold may he added lo oTr curfe cy Ill lieu of them. n feature Il tn plan shOHl,i be m authority given the cretary ot the treasury to dt>pa~e o the bonds abroad for gold II nec- essary to complete the contemplated redemp- Il on and cancellation pers Ittlhg him to use the profeo k uf sucn b0ds 10 take up and cail- nry or that may De received by the government on any account.