The morning news. [volume] (Savannah, Ga.) 1887-1900, 1895-12-17

have been decreased ST.. 2s2 so. as com
pared with the fiscal year 1888. and it is
believed that. with the cooperation of
congress further reductions can be made
in the future without imparing the eff
cheney of the public service.
between the first day of February 1894
and the fifteenth day of March. lSq5' three
issues of bonds We're made. amounting in
the aggregate to 162.315 400.
The payments into the treasury on &C
count of the second bond sale were not en-
urely completed until after the first day of
december, 1894, and it soon became evil
dent that the transaction had not been
emectual to stop the drain Of gold
"On the Sth of February, 1895, the re-
serve mad been reduced to S41 ,3401S1 and
several million more had been demanded,
part OF which was taken out and after
ward returned to the treasury on account
OF the temporary restoration of confidence
resulting from the fact that IL became
generally known that measures were
of the reserve.
The large Withdrawals in December.
1891, and January, and the early part of
February, 1895, were due almost entirely
to a feeling of apprehension in the pub
nc mind, which increased in intensity
from day to day until it nearly reached
the proportions of a panic, and it was
evident TO all who were familiar with the
situation that unless effectual steps were
promptly taken to check the growing dis
trust, the government would be compelled
within a few days to suspend gold pay
mentS and drop to a deprecated silver
and paper standard. More than 43,OO0,-
600 of the amount withdrawn during the
brief, period last mentioned was not de-
manded for export, but was taken out by
people who had become alarmed on ac-
count of the critical condition of the
treasury in its relations to the currency
of the country. Congress, although ear
nestly appealed to for relief, having failed
TO make any other provision
for meeting the emergency, a
contract the particulars of which
were Immediately communicated to that
body, was entered into on the Sth day
Of February, 1888, for the purchase of
3,5OO,0O0 ounces of standard gold coin, al
the price of $17.S0i41 per ounce to be paid
for by the delivery of United States bonds.
having thirty years to run and bearing
deposited at the United States sub-treas7
ury. BY the terms of the contract. not
less than one-half of the gold was to
be procured abroad, and the parties with
whom it was made stipulated that they
would AS far as lies in their power exert
all financial influence, and will make all
legitimate efforts to protect the treasury
of the United States against the with
drawals of gold pending the complete
performance of this contract
This undertaking was faithfully and
efficiently carried 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 deliv-
cry had been completed under the con-
tract
furnished from abroad, the secretary, in
order to prevent disturbance in the rates
of foreign exchange at a critical period,
and avoid a condition which would force
gold exports, and consequent Withdrawals
from the treasury, acquiesced in depar-
ture from the literal terms of the con
tract that one-haf of the coin should be
procured abroad, and accepted deposits OF
gold then held in this country to complete
the delivery. Ordinary prudence demand
ed that the success of the plan TO protect
the treasury against Withdrawals should
not be endangered by insisting upon a
strict compliance with all the details CT
the contract, especially as the government
could sustain no loss, and the Whole
amount of gold stipulated for was Sc
cured"
stated and the secretary says: The bene-
fetal effects of this transaction were ielt
Immediately, not only in this country, put
in every other having commercial or
financial relations with our people Com
fiGence in our securities as safe and profit
able investments was at once restored
to such ar extent that they ceased 10 be
returned to our market for sale, and
very considerable demand for them was
created abroad; but the most gratifying
evidences of Improvement in our condi-
ton were afforded by the prompt revival
of business among our own people, the in
ccensed activity and extension of our
ations the rise in the prices of our Irin-
ciple agricultural products and
ana security, which became appar-
ent in every part of the country. These
encouraging indications of increasing
prosperity still continue and it is reason
ably certain that, if our progress is not
checked BY a repetition of large demands
upon our resources, or by failure to
meet the just expectations of the people
in respect to the reformation of our
finance sX stem, we are entering upon an
era Of Material growth and development
not surpassed in our history
But ADDS Secretary Carlisle "our
further progress toward a complete res
toration of confidence and prosperity is
seriously impeded by the defects in our
currency laws" and he proceeds to dis
cuss the remedy as follows: "Our past ex-
perience with the United States notes and
the treasury notes has clearly shown that
the policy of attempting to retain these
obligations of the government permanent