The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1895-12-17

=" the pfloI Pc
ROD last mentioned was not demanded
Tor export but was taken out by people
VINO had become alarmed on account
OF the, critical condition Of the treasury
I'm Its relations to the currency OF the
country. Congress, although earnestly
appealed to for relief. having failed to
make any other provision for meeting
the emergency, contract the par
ticulnrs OF which were Immediately
communicated to that body was enter
cd into on the Sth of February, 1895, for
the purchase of $500, 900 ounces Of stan
dard gold coin. at the price OF $17.SO4d1
per ounce to be paid for by the delivery
of United States bonds having thirty
years to run and bearing per cent
interest, and the gold To be deposited
at the United states sub-trcasuries. by
the terms of the contract not less than
one half Of the gold was to he procured
abroad. and the parties with whom Il
was made stipulated that they would
as far as lies In their power exert nil
their influence, and will make all lcgi-
innate efforts to protect the Treasury
OF the United States from withdrawals
of gold pending the complete perform
ancc OF this contract. This undertake
ing was faithfully and efficiently car
ried out, and no gold was taken from
the treasury to be used in paying for
the bonds, as had been done in the
two former cases. nor was any with
drawn for shipment until after the de-
livery had been completed under the
contract. After a large part Of the gold
had been furnished from abroad the Sc
crctnry In order to prevent disturbance
In the rates of foreign exchange at Il
critical time and avoid a. condition
which would force gold exports and
consequent Withdrawals from the rrea-
sury, acquiesced in n departure from
the liberal terms of the contract that
one half OF the coin should he procured
abroad. and accepted deposits of gold
then held In this country To complete
the delivery. Ordinary prudence de-
manded that the success Of the plan
to protect the Treasury against with
drawals should not be endangered by
insisting upon Il strict compliance with
all the details of the contract. especially
as the government could sustain no loss
and the whole amount of gold stipula ted
for was secured.
After discussing at considerable
length the disturbances to the country
caused by the silver purchasing act
Secretary Carlisle continues as follows:
The great loss OF revenue, instead of
being the cause of our financial difficult
ties, Is one Of the effects produced by
q defective currency system. and a. fail
ure to recognize this important fact Will
lead us far astray In our search for
an adequate remedy. 1t is true that the
tariff act of 1880. which remained In
force until after the close OF the fiscal
enue derived from customs and that the
expenditures of the Government were
increased from S31S,0i0.7l0 during the
fiscal year 1890, to S3S3.477.954 during
the fiscal year 1899: still 1t is not pro-
bablc that there would have been any
considerable excess of expenditures over
receipts If the people had not been
interrupted by the disturbances grow
ing ont of the unsatisfactory condition
of our currency"
Remedies which might have been
more or less effective under other cir
cumstanccs cannot be i'm the least de-
gree effective now, and 1t will he futile
and dangerous at this time to attempt
II correction of our financial disorders
otherwise than by n total removal OF
their causes No surplus revenue, how
ever large. could cXtricate us from our
present difficulties. or give assurance of
safety in the future unless il should
he required to be paid In gold under n
system which would exempt the Gov
ernmcnt from the obligation to furnish
the gold when demanded to be used in
making the payments: and il is scarcc-
ly necessary TO suggest that such Sys-
TEN is impossible as long as the United
States and Treasury notes are kept in
circulation and are redcemabie In gold
by the Government itself on presenta-
tion.
In regard to remedial measures. he
says: There is but one safe and ef-
fectual way to protsct our Trea sury
against these demands and that is to
retire and cancel the notes which con-
stitutc the only means through which
the Withdrawals can be made. Many
partial and temporary remedies may be
suggested and urged with more or less
plausibility, but this is the only one
that will certainly remove the real cause
of our trouble and give assurance Of
permanent protection against their re-
currence In the future. In order to
further facilitate the substitution of
other currency for the retirement OF
legal tender notes the national banks
should be authorized to issue notes
equal i'm amount to the face value OF
bonds deposited To secure them. and the
tax on their circulation should be re-
duced to one-fOurth of one pcrccntum.
AS a part of the plan for the retirement
and cancellation of the legal tender
notes the Treasury should he relieved
from responsibility for the redemption
of national bank notes except worn.
mutilatcd and dSfaced notes and the
notes of failed banks, and each associn-
ton should be required TO redeem its
agencies to be designat ted by the Comp
troller of the Currency, as was the case
prior to the passage OF the act of June
20. 1874: or, If this is not considered eX-
pedicnt and the present system of cur>
rent redemption by the Treasury Is con-
tinued, the Secretary should have the
power after q future date, to he fixed
In the law, to require the banks to keep
their 5 Per cent. redemption fund In
gold coin, and to deposit gold coin for
the withdrawal of bonds. whenever cir