The evening times., 1895-12-03


opportunity OF retaining these notes In 10y
Treasury when received. and thus nrevent
Ing their presentation tnr gold; such re
measarnbiy pernianent. and this Y pre-
cisely what Il prohibited, sa far as unitet
States notes are concerned. by the Inv q
That statute la 90 many words pfoyides
that these Dotea, when resetycd iatu tn
Treasury and belonging Ia TIE United states
shah h, '' paid out again aud kept IN tircu
lation."
REGARDED AS AN EVIL.
1t VIII. moreover, be readily seen tina
the government could not refuse to pay ou
United States notes and Treasury mites In
Current transactions when demanded and
insist on lr,ying udt silver alone and sill
maintain tue parity between that metal and
the carrehcy representing gold. Besides:
the arc-i -ii,iiiation IN the ireasury 81
currency OF any kind ezacted fran the
people tnrncgh taxation Is justly regarosu
as an eyIi. and II cannot proceed Far WIN
out vigorous protest against an un.ustHi-
abel retention af money from the BUSINESS
OF the t,sliitry and denunclutton ol u
scheiDe OF taxation whiei, proves itself to
be UNJUST wnen IL takes ffoii the earninGs
and E.,Uije III the citizen money SO intch
in excess of the needs uf government sup
port inar large sums can D. gathered and
Kept IN the treasury. Sucsi Il tununtun Ia s
heretofore in times OF surplus revenue led
the government tu restore currency 10 the
people by the purchase of its uhinaIured
bonds AT a large premium and by large
Increase or ITS depusits IN NATIONAL banks
and We easily remember that the abuse Of
Treasury accumulation has furnished mast
persuasive argument in favor or legislation
-adicauy reducing our tariff taxath,n.
Perhaps IL is supposed tnat sufttc1ent rev
euue receipts would in a sentimental way
improve the situation, by Inspiring conf
dence tn our soivency, anu ALA ying the fear
of pecuniary exhaustion. And yer through
all our struggles to maintain our gold re-
serve thtrs never has been any apprenen sion
as 10 our ready ability to pa y our way with
such money AS We mad; and tie Questicn
whether or mol our current rtceiptS met our
current expenses mas not entered into the
estimate OF our soiyency. or course, the
gcuerai state OF our funds. exclusive or
gold. WAS entirely immateri:ii TO the foreign
crclitor and investor. His Lei,t could only
be paid in gold, andhis oniy Concern wa our
ahiilty 10 keep on hand tldt kind OF money.
On July |. 1892, NOR. than q year and a
half before the first bonds wcce issued To
repleu!sh the gold reserve, there was n net
balance In the Treasury, exclusive OF such
reserve, OF less than 81 1900. 1 90: bEt the
&oiu reserve amounted to more tnan 81 a.
OOo,tOo, which was the Quieting feature OF
the situation. 1t was wnen the stock of
gold iregan rapidly 20 fall that fright super
vened, and our securities held abroad were
returned for sale, and debts owed abroad
were pressed for paynent- In the mean
time extensive shipments of gold and other
unfavoranie Indications caused restiesS
ness ami fright among our people at home.
Ihrreel... ...- Svis-r..i s,a,e .ur iLi.is.
exclusive OF gold. became also immaterial
W 100, uEtW kOfu ITOlu tue
Treasury for hoarting against all con-
tingen,irs.
This is plainly shown by the large in I
crease in tine propurtlnn OF gohi witbdra wu
winch was retained by our own people as
time and threatening incidents progressed
During the fiscal year ending June 80,
1894, nearly SSo,0OD,ouO in gold was
witbdra WI from the Treasury and about
SIT 100000 was sent abroad, while dur
ing the fiscal year ending June 80, 1895,
over SLY 900 900 was dra wn out, OF
which only about $50. 6.000.o00 was ship
ped. leaving the large balance of such
withdra wais to be accounted for by do
mestfc boarding
REASSURE THE FRIGHTENED.
Inasmuch as the withdrawal of eur
gold has resulted largely ir"m fright, there
IL nothing apparent that viii prevent its
hr recurrence. with Its natural
except such a change in our
financial methods as Will reassurc the
frightened and make the desire Tor geld
less intense. 1t Is not Clear how an IN
crease in revenue. unless II bc in gold, can
satisfy those whose only anxiety Is to gain
yu.u irun the government = store. 4
1t cannot. therefore, be safe tn rely upon
increased revenues as cure tor cur rres- 1
eDt troubles
It is possible that the suRgesti,n of in 4
creased revenue as a remedy ior the dtfi-
,uities We are considering may have nrlgi-
Datpd in an intimation or distinct allega.
Ion that th,. bonds W hich have beeu issued |
,stensihiy To- replenish our god reserve |
were really issued TO supply Insufficient |
revenue. Nothing eau be iurthtr rrtm tne
ruth Bonds were issued To- obtain gold /
or the maintenance of our national cr,dit. /
As has been shown. the gnid thus nD-
aimed has been drawn again from tns
Treasury upon United States notes and
Treasury notes. This operation would
iaye been promptly prevented II pussioie. /
,ut these notes having thus been passed |
II Lua government, ike any other orunary
government funds. and there was nufhinE
o d. but to use them IN paying govern
nent expenses when needed. |
At no time when bonus have been issued |
as there been any consideration OIL tne |
uestion or paying the expenses OF govern
lent with their proceeds lhere was no
eCessity 10 consider that question. AT the |
luie Of each bond issue We had safe sur
nus in The Treasury for Ordinary operations
Exclusive of the gold In our reserve. In Feb
uary 1884, wien the first issue OF bonds |
vas MA de, such surplus amounted to over |
is 100000: in November. when the Sec
nd issue was made, II amounted to more
han SI..0OU GOO, aud in February, 1898.
yhen bonds for the third time were issued. |
ucii surplus amounted 10 more than Sl00.-
90 900. 1t now amounts TO SSs.O12.-
20.30.
Baslde.s all this the Secretaryof the Treas |
ry had no authority whatever oissue bonds
D increas, the ordinary revenues or pay |
urrent expenses
1 cannot out think there has been some
ontus on Of ideas regs riding the effects Of
ne issue oT bonds and tisc results of The
;ithdru wal Of gold. IL was the latter pro-
ess and not the former that by substituting
the Treasury United states notes and |
treasury notes for gold Increased by their |
mount the money WHICH was in the iirsL |
istlncr subject TO eruinary government |
Expenditure
WITHDRAWALS OF GOLD.
Although the law compelling an increa sed
urcilasc or silver By the government was |
assed on the 14th day of July, 1890, with
I'll walls OF gold from the Treasury upon
ie notes given III payment on sucn pur-
hases DID not begin Until October ! lo91. I'M
following that date the with
ra walls upon both these notes and United |
tates EvIcS Increased very largely, ana
ave continued tn such an extent that since |
ie passage ct,the law there has been more |
iau thirteen times as Hiuch gold taken |
ut OF the Treasury upon United States |
otes ana Treasury notes issued FOR silver |
lrc.iasrs as was thus witlidra wn during |
IL eleyrn and a halr years immediately |
nor thereto and after the lst day of Janu-
ry, 1919, when Specie payments were re- | .
lnied.
II is neither unfair nor unjust 10 Charge | .
large snare OF our present financial per- !
textiles and dangers 10 the operat ion of .
le laws OF 1878 aud 1890 compelling the I
lrchase OF silver by the government,
hicl not only furnished Il new Treasury !
litigation upon which its gold could be 4
itndraw but so Increased the fear of an | !
Ierwhcinring flood of silver and a forced :
scent 10 silver payments that even the |
peal OF these laws did not entirely cure 4
le evil q; their existence. =
While have endeavored to make a plain | l,
atemcnt of the disordered condition OF
lr currency and the present dangers men.
ing our prosperity, and To suggest a way
ni.'I, i,siuS 20 q SAFER IIIianciai system. 1 4
I'VE constantly had in mind the fact that
auy of my countrymen, whose sincerity |
not doubt, insist that the cure for the T
S now threatening us may he found in the |
nGle and simple remedy OF the free COIN
,e OF silver. They contend that our mints
ftnHa Er..