The herald., 1895-12-04

the uunatuiaI infusion of silver into our
cur, ency and the increasing agitation for
It's free and unlimited coinage, which
bav. crcatsd apprehension AS to our dis
position or ability to oo.tnue gold pay
ments. The consequent no riding of gold
1t hume and the stnppinp OF ,nvestm en- Is
of fOreikm capital. as we'll as the return
OF our securities alrt ady sold abroad, and
the high rate Ut forsign exchange WIN oh
Induced the shipment Of our gold IN be
drawn against is a matter OF specula-
ti"on ln conseque CO Of these .condi-
sions the gold reserve on the LIST day Of
February, 1894, was reduced to $65, 4s3.-
S37,. having lost more than x31 900. 900
during the preceding nine months, or
since April, 1898.
ISSUANCE OF BONDS
Its replenishment being necessary, and
no other manner OF accom- ri ishing 1t be-
ing possible. resort was had to the issue
and sale of bonds providai for by the re-
sumption act of 1873. Fifty millions OF
these bonds vera sold, yielding $685. :
295.7i. winch was addel to the reserve
fund Of gol- then on hand. AS a result
Of this operation, this reserve. which had
suffered constant and large Withdrawals in
the meantime, stood on the 9Th day of
March, 1894. at the sum OF $107 4iG, S02
LIS ucDleLlOn WaSy DOWcvrTs iii
thereaftei so accelerated that on the 30th
day OF June, 1894, II han fallen to $685.
1878, OPS. thus losing by Withdrawals more
than $&2, DOC, 900 in five months ana drop
ping slightly belrw its situation when
the sale of $50, U0o, 900 in bonds was ef-
fectsd by its reple"ishinent. This de-
pressed condition. grew worse, and IN the
oath day nj N9vem Der, 1894, our gold re.
serve being reduced to $57 669. 70!, 1t be-
came necessary to again strengthen it.
This was done by anntner sale of bonus.
amounting to $500 900, from which
there was realized IS. 53s 600, with which
the fund was lncr Jaeed 90 all, l42, o. OH
the 4th day OF Decsmbs 1894.
Again disappointment awaited the anX-
ious hope for relief. There was not even
iull in the exasperating withdrawal of
gold. Between this 4th day of december,
1894. and EARL in February. 1895, pc
1iod of scarcely more than two months
after tae second rein orcement Of our
golh reserve by the sale of bonds, it mad
lost by such Withdrawals @ore than sG9,
600 900 and had fallen to Sal ,a40. 1911.
Nearly "a, 900 had Leen Withdrawn
within the month Immediately preceding
this situation. In anticipation OF i'm
pending trouble had on the 2Sth day of
January. 1895. adressed communication
o congrsss fully setting forth our diff
cult es and dangerous position and earn
cstly recommending that authority be
given the secretary of the treasury to is.
sue bInds NEARING low rate Of interest
payable by their terms in gOl!. For the
purpose OF maintaining sufficient gold
reserve and also for the redemption aad
ca collation. Of outstanding Unit d States
notes and the treasury notes ISIS led Tor
the purchase of silver under the law of
1890. This redemption did not, however.
meet with iegislat spr roval.
In February, 1895. thereafter the stna-
linn q fi.ul witt a
se:ve peril,usy low and a refusal OF con-
gressional. aid, everything indie 10 that
the emu of go'i PAYMENT by the vern-
ment was 'innine The results of prior
bnnd issues ha been exceedingly unsst-
isfac.oty, and the large withrawa of
gold I'm n.cdlately succeeding their public
sale in open make gave rise to the rea-
sonaDie .spicion that large part of the
gold pai into the treasury upon such
sal was promptly dr. WI out again by
the presentation of United States notes
or treasury rotes and 70 md its way to
the hands OF those who had cnlv tempo
rarily parted with it IN the purchase OF
bonds.
In this emergency, and in view Of its
surroundi Z perplexities, it became en-
tirtly apparent to those upon whom the
struggle for safey was devolved, not
thru time in less than three months be
ressorei by another issue and sale OF
bands gearing high rate of interest and
badly suited to tho purpose, but that a
plan must lie adopted for their disros.
ton, promising better results than tuJso
real ,ed Oh previous sales. An agreement
was til refore made with number OF
fnanciers and bankers whereby It was
stipulated that bonds describe in the re-
sumption act of 1915 payable in coin thir-
ty years after their dat, bearing inter.
est at the rate of pei, cent Per annnm
md n N 70 al.
should BE- exchanged for gold receivable
by wtiyst amounting to little more
than s65. Q00,0 01. This gold was TO be de-
liverej in sucn installmsnts as would
o.nplete Its delivery within about SIX
months from the date of the contract land
at least one-half Of the amount was to be
furnished from abroad. 1t was also
agreed by those supplying this GOLD that
during the continuance of the contract
they would by every means in their pow
er protect the gover1ment against gold
Withdrawals. The co tact also provided
that il congress would authorize their is.
sic bonds payable by their terms in gold
Cni bearing interest at the rate of per
cent per annum might within ten days
he substituted at par for the pero cent
'hods describe IN tbe agreement.
! On the day this contract was made Its
terms were communicated to congress by
a special eceNutive messaao IN wnicn it
saved to the government if gold bonds
bearing per cent interest were author
ICED to be subst tuted for those mentiUc-
en- IN the contract. The congress having
declined to grant tle necessary authority
TO secure thi> saving. the contract un.
moditie was carried out. resulting in a
gold reserve amounting to Sl07. 671, $50 on
the S,h dav oi July, 1895. The p. rform-
ance of this contract not only restored
confidence in the reserve, but checked
for "a time the withdrawal of gold and
borught period OF restored confidence
ana such peace and quiet in husines.
circles as were OF the greatest possible
value in every interest that affects our
peope. | have never had the slightest
misgivinR CONCERNING the wisdom or
property OF this arrangement, ain ] am
qu,te willing tn answer for my full share
OF responsibility for its promotion. be-
licve II aveited q .iyastei the i'm m inence
OF which was Iortunteiy not at the time
generally understood bv our people.
Though the coatraCt mentioned stayed
for time the tue of gold Withdrawals,
its good results could not be permanent.
Recent Withdrawals have reduced tho
reserve from SLY. 57l, 800 on tins eighth
day of July, 1895, to $40, 332 $50. How
long II will remain large enough to rem
der its increase unnecessary Is only mat.
Ter Of conjecture, though quite lar-e with.
drawals for SHIPMENTS in the inmed late
future are pre- iiCtc1 in well informed
quarters. Abput Sl6,0JD,0J0 has been
withdrawn during the mouth of Novem.
Der.
GOLD ON HAND.
The foregoing statement of events and
l,.,- Al.