The evening times., 1895-12-16

ed TO less than &as. abO. 900. bnt from the
for the purchase Of silver bullion and the
| issue OF Treasury notes to pa v for II. until
December L: 89t. a period OF five years
asof eod ny thc % 1esas ,,an tne of the two
classes or notes for redemptl0n: have
am99gnte.i o. 81 to more than $3I 5.o0o.0 900.
that act, the withdra walls. became very
large, and, during the last seven months
Of the calendar year 1902 they ampunted
in excess of the amount withdra wn during
period OF eleven and half years prior 10
the enactment Of that law; and during the
March. 1s93, the withdra walls amounted TO
| S5S,1s6,O0S, or more than twice as much
as was taken out during the whole period
| prior TO July ~, 1880. These heavy with
urawais OF gold were accompanied he
falling off In the revenue, and during the
four months next proceeding the 1st day
3f march, lssS' the @ expendi,Sre&s Sc exGeedcd asieo
the four months next succeeding the !st
day Of March, 1893. the receipts slightly
exceeded the expenditures. and the sur
/ S2,341 .6T4.29. Al n,ts close of that year:
however, the receipts again began to fall
below the expenditures. and there mas been
deficiency every month since that date.
except In June and September, 1893.
For many years after resumption, much
the larger part of the gold demanded Tor
tApOAN Was ny tiit, no phb ct'N.
| financial instituti0nk, l. and this continued
to be the case until Tiny 1, 1892. but since
that date the Withdrawals from the Treas
ury have considerably exceeded the amount
exported. The banks ian,i other institu-
tiOns, having thus reduced their gold as
much as u proper regard for the presersa-
ceased ia supply thel export demand. thus
throwing the entire bufden on the treasury.
and our own people aiAVss Withdrawn large
sums for boarding or for the settlement OF
fvsl!r n
ais from the Treasury betweenJuiy lsaS'
and July L, l S92. amounted 10 S43. , 10 $50.
while the gross cxpor,s during thS sam,s ains
that $3I6 ,043.S61 was supplied from
sources outside Of the Treasury: but me
withdra walls from July 1. ls?2. 70 De-
ceniber 1, 1885, have amounted 10 S3eO.-
266 5l2. and the gross exports have amount
I'd To S3O5.611, ,419. from which IL appears
that the government has furnished sum
equal to the whole export and S54,6iS.-
093 In addition.
GOLD SUPPLY DIMINISHING.
while the government has thus been
compelled. during the last three and lalr
years. not only TO furnish gold from the
Treasury for export TO other countries.
Dut also a large amount for the use nf our
account of customs and Other taxes have
been constantly diminishing since July,
$50. and have nav entirely ceased.
Prior to The passage OF tie silyer-purchas-
ing act. nearly the WI ole amount received
from customs at tie port OF New York con-
sisted OF gold certificates. and from TINS
source the government was enabled to
procure n supply of god COIN sufficient
to meet all demands upon ii and maintain
its reserve intact. During the month OF
July, tsS9; gold sertifieatss con. construct ea
port mentioned. ard tie free gold in tie
Treasury amounted $1s4.O92.O14. but
the first Treasury notes were issued and
put into circulation IN August OF that year.
and. Spntpmfcr. the rcCelntg ROh
certificates fell to So l-2 per cent. and
the free gold was reduced 10 S141.SS1.132.
crease until they amounted. in July. 1892.
To less than 4 per cent. and in May, 1898:
they ceased altogether: and the free gold
IN the Treasury also continued to dimin-
tsh. though not without some fluctuations.
until April. 1893. when. for tEe first time.
it fell below $10O.O90.0OO.
1T thus appears that within little less
than Two years after the passage OF the sil-
ver-purchaSing act our whole currency and
revenue systems had been thrown into
most pcrDlexing and dangerous state Of
disorder and confusion. aud we had reached
a point where The pn bile revenues were be-
ginning To fail below The expenditures.
where the Withdrawals or gold from the
Treasury were beginning To exceed The de-
mands for export, n MI where gold pa ymcB,s
To The government had si substantially ceased
In view of these fac, there ca n be no great
OF our troubles. During the three fiscal
wears S81. s92. and 1S92. beginning July
/. 1890. and ending June 30. 1898, the re-
ceip,s of the government exceeded,its ex-
the withdrawa OF gold ny the holders of
United States notes and Treasury notes
amounted TO S117 ,2I2. 25s, and the reserve
In each OF these yrars there was a sur
plus revenue hut confidence in the ability
of the government to'maintain gold paw
mcnts II ntier n policy OF cons antly ircrcas-
ing the legal-iender paper circulation had
been ionslyimnairrd. n nd The consequence
was that large amounts OF our securities
held abroad We're returned Tor sale in he
bone market. foreign capital invested in
our industrial and commercial enterprises
was rapidly withdrawn. and our own pco-
ple. alarmed by the threatening aspect of
the situation. curtaileiN Nsheir bus usinrss op-
erationS. thus diminishing the opportunities
ortbc employment oflabor AMI at the same
time Il process f1iuuidaiipn was necessarily
country ovcrtaXed the resources of debtors.
DEFICIENCY IN THE REVENUE.
''No one then questioned nor does nvone
now quest ion. the ability OF the government
promptly to meet dill its obligations in
Cured in the maintenance of the public
service. and. conseGheBily. the financial
and general business depression
cannot properly he attributed to def
cheney in the revenue. On the contrary
the deficiency in the revenue. which began
10 appear in the latter mart of 1892 and has
continued ever since. is mainly attributable
Ia the same causes which produced the fl
anciafdisturban nee and business depression.
The great loss OF revenue. instead OF being
the cause OF our financial difficulties. is one
of the effects produced by a defective cur
rcncy system. and failure to recognize
this important fact will lead us far stra V in
our search for an adequate remedy. II is
true that the tariff act of 1890. which re-
mai ined i'm force until after the close of the
fiscal year 1894, had greatly reduced the
revenue derived from customs and that the |
of the government were in |
creased from S31 S,O40.T 1866 during the |
ing thef fiscal year go 3: probable |
that there would have been an co ms Siderable |
excess of expenditures over the receipts If |
he business OF the people had not been in. |
terrupted by the disturbances growing out |
of the unsatisfactory condition Of our cur |
rency.
1.-The United States notes. and the Treas |
in payment for silver bullion. |
together amounting at the beginning TO |
have been used and are sfill |
being used, to withdraw gold from the |
the governments or peoples of other coun- |
tries see proper to demand ii for any pur- !
pose. and, under the laws now existing. |
the Secretary OF the Treas sury has no means |
or complying with these demands EXCEPT by |
the issue and sale of tnterest-bea ring bonds
under the act OF January a. 1875. or by |
the purchase OF gold coin with bonds or
notes OF the United States under section
500 of the Revised Statutes. Against |
these demands the Treasury has no avail |
able means OF defense except at The sacri-
lice of the public credit and the immediate
depreciation of the entire volume of our cur
rency. A refusal to pay gold on either class
Of our notes. when demanded by the holders.
would instantly destroy the pa rity OF the
two metals. reduce the currency TO silver
Da sis, unsettle all values. impair the obliga-
tons OF all existing contracts. and DreciDi-
tate financial, industrial and commercial |
revolution more disastrous in its conse- |
lucnccs to the labor and business interests of
The country than any panic or depression that
has vet occurred in our history.
tnn mn inv y-.,d