Middletown transcript., 1895-12-07

bonds amounting to $50, 600, 600, fro1l
| which there was realized $58, 638, 500, witt
| which the fund was increased to Sill,
| 142, 021 on the 4th day of December. 1894
Again disappointment awaited the anx
| ious hope for relief There was not ever
| lull in the exasperating Withdrawals o
gold. On the contrary, they grew largel
and more persistent than ever. Between
the 4th day Of December, 1894, and early
in February, 1895, period of scarcely
| more than two months after the second
reinforcement Of our gold reserve by ths
sale of bonds, it had lost by such with
drawals more than $69 600, 600 and had
fallen to $41, $40. 181. Nearly s48, 600, 00(
had been withdrawn within the month
Immediately preceding this situation.
In anticipation Of impending trouble,
had, on the 28th day of January, 1896,
addressed communication to the CON.
gress fully setting forth our difficulties
and dangerous position and earnestly REQ
ommending that authority be given the
secretary Of the treasury to issue bonds
bearing low rate of interest, payable by
their terms in gold, for the purpose Of
maintaining sufficient gold reserve, and
of outstanding United States notes and
the treasury notes issued for the purchase
Of silver under the law of $780, This
recommendation did not, however, meet
with legislative approval.
A Low Reserve.
In February, 1895, therefore, the situa.
tion was exceedingly critical. With re-
serve perilously low and refusal Of con.
gressional aid, everything indicated that
the end Of gold payments by the govern.
ment was imminent.
In this emergency and in view Of its
surrounding perplexities it became entire
ly apparent to those upon whom the
struggle for safety was devolved not only
that our gold reserve must. for the third
time in less than IS months, be restored
by another issue and sale of bonds bear.
ing high rate of interest and badly suit
ed to the purpose, but that plan must be
adopted for their disposition promising
better results than those realized on pre-
vious sales. An agreement was therefore
made with number of flnanciers and
bankers whereby 1t was stipulated that
bonds described in the resumption act OF
1875, payable in coin 80 years after their
date, bearing interest at the rate of pei
cent per annum and amounting to about
$50, 600, 600, should be exchanged for gold,
receivable by weight, amounting to lit
tie more than s65, 600. 600.
On the day this contract was made its
terms were communicated to congress- by
a special executive message in which it
was stated that more than SIC, 600, 600
would be saved to the government If gold
bonds bearing per cent interest were au-
thorized to be substituted for those men,
toned in the contract.
The congress having declined to grant
the necessary authority to secure this saw
ing, the contract, unmodided, was carried
out. resulting in gold reserve amount
ing to S107, 571, $50 on the 8th day Of July,
1895. The performance Of this contract
not only restored the reserve, but checked
for q time the Withdrawals of gold and
brought on period of restored confidence
and such peace and quiet in business cir
cles as were of the greatest possible value
to every interest that affects our people.
have nevershad the slightest misgiving
concerning the wisdom or propriety of this
arrangement and am quite willing to an
swer for my full share Of responsibility
for Its promotion. I believe it averted
disaster the imminence of which was for
tunately not at the time generally under
stood by our people.
Though the contract mentioned staid
for time the tide of gold withdrawal, It's
good results could not be permanent. Re-
cent Withdrawals have reduced the reserve
from $107, 571, $50 on the 8th day OF July,
1896, to $40, a3s, 966.
Ramedv SnDOesfad
The government has paid in gold more
than nine-tenths of Its United States |
notes and still owes them all. 1t has paid |
In gold about one-half of It's notes given |
for silver purchases without extinguish- |
ing by such payment 81 of these notes.
When added to all this we are reminded |
that to carry on this astounding financial |
scheme the government has incurred a |
bonded Indebtedness of $95, 500, 600 in es-
tablishing a gold reserve and of $162,
BIG, 400 in efforts to maintain it. that the /
annual interest charge on such bonded in |
debtedness is more than $11, 600, 900, that
a continuance In our present course may
result In further bond issues, and that we
have suffered or are threatened with all
this for the sake Of supplying gold for
foreign shipment or facilitating its hoard
ng at home, a situation is exhibited
which certainly ought to arrest attention
Ind provoke immediate legislative relief.
am convinced the only thorough and
practicable remedy for our troubles is
'ound in the retirement and cancellation
If our United States notes, commonly
,atied greenbacks, and the outstanding
reasury notes issued by the government
n payment of silver purchases under the
lot of $780,
believe this could be quite readily ac-
by the exchange of these notes
or United States bonds Of small as well
Is large denominations bearing low rate
# interest They should be long term
,onds, thus increasing their desirability
IS Investments, and because their pay
nent could be well postponed to period
ar removed from present financial bur-
lens and perplexities, when with increased
and resources they would be
more easily met.
To further insure the cancellation Of
hese notes and also provide way by
which gold may be added to our currency
n lieu of them, feature in the plan
hould be an authority given to the secre-
ary Of the treasury to dispose of the
'onds abroad for gold If necessary to COM
'lete the contemplated redemption and
permitting him to use the
of such bonds to take up and
ancel any of the notes that may be In.
he treasury or that may be received by
he government on any account.
The currency withdrawn by the retire
aent Of the United States notes and treas
ry notes. amounting to probably less
han $486, 000. 600. might be supplied by
uch gold as would be used on their retire
dent or by an increase In the circulation
our national banks. Though the ag
regate capital Of those now in existence ,
to more than 1864, 600, 600, their
circulation based on bond se-
urity amounts to only about $190, 000,-
90. They are authorized to issue notes
to 90 per cent Of the bonds de- ,
osited to secure their circulation, but in
o event beyond the amount of their capi. ,
Il stock, and they C obliged to pay l ,
or cent tax on the cif0ulation they issue.
think they should be allowed to issue ,
lrculation equal to the par value OF the
onds they deposit to secure 1t, and that
be tax on their circulation should be re-
uced to e-fourth of per cent which !
,ould undoubtel1v meet all the expense