Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1895-03-06
PAYING OUT SILVER.
THE DRAIN ON THE GOLD RE-
SERVE STOPPED AT LAST.
Secretary Carlisle Has Prevailed Upon
Cleveland to Pay Out Silver Dollars
to the Men Who Have Been Draining
the Reserve OF Gold for Export.
Tne News Bureau, Sun Building.

astonished the country and signally
demonstrated it's convictions tnat no
financial legislation could be expected
from the present congress, by aband
onlng its policy of exchanging gold
LOT greenbacks and treasury notes at
the demand of their holders, and exer-
clslng its right to red eem them in
silver at its discretion. 1t is learned
from reliable authority that Secretary
CarIlsle has for some time past been
III IaVor OF the adoption of such
policy and has urged upon the Presi-
uenl the necessity, as we'll as the ad-
vantage of it, but to no purpose until
no eAporters of gold last Saturday an
souced their intention to make heavier
ulains upon the reserve during the
present week than ever before, and to
oon'inue the process Indefinitely. Thls
e"ns It's utter depletion and its re-
p4enlShment by an additional issue OF
o0ius only to be again depleted py
tne same process, proceeding already
ulSCasteful to the administration, and
thoroughly repugnant to the wishes
OF a vast majority of the people.
exporters was the apparent authentic
rumor that the banks and trust COM
panies would decline to subscribe for
another bond issue except on terms
formulated by themselves.
Confronted at last by such condi-
tlons, Secretary Carlisle finally pre-
vailed on the president to abandon
temporarily at least, all theories and
utilize the unequivocal right conferred
by positive enactment, to pay the pub
Tic creditor in gold or silver coin as
the government might desire. Mr..
Cleveland finally yielded to Mr.. Car
llsle's urgent entreaties, but with great
reluctance and only because immediate
relief by new legislation seems hope
less, while the policy of paying all OBJ
legations in gold has only served to ag-
graVate, instead of ameliorate the en-
barrassments of the treasury.
The sub-treasury officials at New
YORK were at once secretly, but posi-
/ lively instructed to pay all public OBJ
legations, gold certificates only ex-
cepted, in silver coin until otherwise
ordered, and the solicitor of the treas
ury was sent on that his counsel might
be available if desired by the sub
treasurer. All of Sunday was devoted
to the removal of silver coin from the
vaults to the counting room. When
the treasury opened yesterday morning
the tellers were fianked by great guam
titles of coin and were ready for busi-
ness.
Precisely at 10 o'clock, representa-
tive of Heidelbach, Ikelheimer & Co..
| presented himself at the paying tel
! lers' windows with treasury certifi-
Gates issued under the act of 1890, to
the amount of $1,000,000 together with
$155,O00 in greenbacks and demanded
gold for them. He was politely in
formed the treasury department would
pay for them in silver dollars, and
then bag after bag was passed out OF
the window before the astonished indi-
vidual had time to utter word. When
he found his voice he began to pro-
test with all his might, demanding
either gold or the return of his certi-
ficates. The teller in obedience to his
instructions refused either, but told
his customer to remove his silver coin
as soon as possible and to go to the
sub-treasurer with any complaints he
had to make.
| A member of the firm of Lazard
Freres stood behind the Heidelbach
Ikelheimer exporter during the COLO
guy. He fed with blanched face and
trembling limbs to spread the news
that the government was redeeming
it's obligations in silver. AS a result a
great crowd almost Immediately gath
cred before the sub-treasury building,
while a deputation of bankers, with
Ahasuerus Heidelbach at their head
waited on the sub-treasurer and indig-
nantly demanded to know why the
government had repudiated its prom
ises to pay in gold. The solicitor asked
whether any gold certificates had been
presented for redemption to which the
reply was made that all government
certificates called for gold. The soli-
citor demanded authority for the state
ment, but it is needless to say that none
was given.
He then reminded his audience that
with the exception of gold certificates,
payable in gold, and silver certificates,
payable in silver, all demands upon the
treasury were payable in coin, term
of definite meaning, easily understood
Mr.. Simmons of the Fourth Ma
tional bank, angrily inquired if dol
lar in specie meant 60-cent silver dol
lar and whether such payment did not
mean reputation. The solicitor de-
hn mo- of
in the past of such thing as a 60
cent metallic dollar within the limits
of the union and challenged his inter
rogator to name an instance in which
any such dollar had been detected. He
added, nevertheless, that no one could
be charged with reputation who per-
formed his contract in precise accord
ance with its terms and even though
silver dollar had deprecated In
value, which he fatty denied, the gov.
ernment creditor could neither morally
nor legally refuse to take them since
the contract expressly provided fol
their redemption in such coin.
This assertion brought forth {
chorus of denial, whereupon the soli
citor rapidly summarized the act OF
1869 to strengthen the public credit
the funding act of 1870, the celebrated
senate resolution of January, 1873, thu
opinion of the attorney general tC
Secretary Sherman, April 81, 1877, tha
ell obligations of the government were
and must be made payable in coin o.
the standard value of July IA, 1870
| and which by that OpiDion was con
strued to include silver as well a:
gold; and finally the act of July IA
1890. the second section of which ex
pressly authorized the secretary to re
deem all notes issued hereunder il
gold or silver coin at his discretion.
Congressman Hendrix. the New
York bankers representative, here
hastily interposed to remind the soil
citor that by the same section of thai
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