The morning times., 1895-12-04

maintaining sufficient gold reserve. ar
aiso Tor tie redemption and cancellation
Treasury notes iss Ted for che purchase Z
silver under ihe law OF 1890. This recon
mrDdation did not. however, meet Wif
| legislative approval
! In Februasy, 1895, therefore. the eft,
; attpn was exceedingly critical With a r,
serve pertiousiy low and q refusal or Coz
gress;onai aid, ererything Indicated TIA
the end or suid payments by the eoyerr
tnent was inimlnent. The results OF pri,l
oohd issues had been exceedingly tfnsat /,
Iac.ory, aud the large withdra walls .f gol
ii,pidea,a.eiy T., me-. succeeding their public sal
~ oien niarket gave rise t., a rea sonabl
suspfion that large part ur the gold mai.
inVo the treasury upon snrh sales Ua
pun piohpeiy ord wh out again by the presenta
uon u LMtsed , aIes notes Oh Ireasurl
notes ana folnd its way to the hands OF ti,os
VINO had only temporarily parted wittl
IN the purchase of bpnds.
BONDS GIVEN FOR GOLD.
In this emergency. and in view of Il
surrounding perplexities. IL became entireI,
apparent 10 th'ise upon whom tine struggI
Tor safety was dev,lyed not only that nu
goiu reserve must, for the third time IN tes,
tnah innteen months, be restored by an
o.nef issue and sale OF bonds bearing
a q nisn fdte UI Interest anu badly suifet
70 Tue purpose. but that a plan fl,ustg IN
adopted for their Disposition promis,nS
DETER results tnan those realized ON pro
vio1s sales An agreement was fhere.
Tore tDaue with a nuinDer uf rinan,iers and
BANKERS whereby IL was Stipulated thaI
pSns pponas descriDed In the resumptiIin act q
,no; payspie IA CON thirty years afteI
their date, bearing interest at the rate ol
per cent per annum, and Amounting B.
about $50, GOO. 900, sh,HlId be exrhanred
tor i Eoio' reeeiyaole by weight, amoune
nE " Iittie mare than 500, 900, 900.
Ihis gold was to be delivered ia such in.
saailnehts as would complete its leifyery
cn.a. mi,,ii aoo1t SIX monst,s from the date OF It'd
cohtracI. and at least one-ualI oi I tn,. ..alo,n'
was to be furnished from abroad. m Wa
also @ ssreed Dy tnose supplying this roId
,ti nat aafing the continuance OF the contracs
t,oya., scJ,a .hsi ny every means In their power
umrdW9is- W Inc CONTRACT aiso prof l,e1t tl,aa
II Congress would AUTHORIZE their tsss,.
t ponas payaoie By Their terms In gold eOd
per annuin might within ten days be suhsfa.
iuted at par Tor the 4 per cent boa,is -
scriDed In tee agreement.
On the dag this contracs was made its
effuis were communicated To Cong r-ss by q
stectu executive Lncssagc in wfIicn N was
stated that more than SI6 600 600 wo,i
oe safe1 10 the government a gold boadl
bearing 3 per cent interest were snfhori-s1
contract. ~ -
Ine Congress having declined to erans
sns, usessey ~. authority to Secure this say
% oo' TesuAlnS N q gold reserve amouutius
70 Slo1 81 ,230 On lae Stu CAV OF Inix
noS o,,, rhe performance OF tins contract
o.
tot tlnie Withdrawals of pold an6
at on period or restored confidencs
anu a1 sach peace and quiet in business cir.
cits as were OF the greatest possible vain.
20 every interest that affecfA our naonsc
nave never Bad the slightest mis- giving I'm
cernins Tue wisdom or propriety OF tIis a.
! ahs ,, e,nent. ana am quiLe willing to an
Hel LOT my 1ull share of esponsibiIity 10,
ts promouon- / believed IL arerted 4 ~
htrr, tue iEainiBeace OF wujch MAS rost.
5X o,s, I mo- az Tue time generally understooa
Though the contract mentioned s,.v.<
OF a time the tide of geld vitf,dra <yai
Is good results Could not be perma nrnf
M leeent ~iisdrawals have rrduced the re-
eISe from slOl oil. .23o TN the Sth day ~
uiS 1888, TO s1S.333. 96S- How long n
wa remain large enough to render fts In
Tease unnecessary Is only matter of Gun.
ectuTe- though quite large wIhftra <rai,
or shipment in tue imIn-dIate futnre ar
PREDICTED In weli-informed Quarters Ah,,n1
Fl6.ooO.OOO has been Hjthdra wn durIne
he month af November.
BACK TO WHERE WE STARTED.
The foregoing statement OF events ana
onditi"ns develops the fact that after
Increasing our interest-bea.ing bonded Iu-
ebtednesS more than Sl62 900 QUO to
ave our gold reserve we are nearly where
We started. having now ia such reserye
q 1888. 966. as against !S65.43S, ,37T ip
ssiied- es
Though the amount of gold dra yu from
be Treasury appears to be ytery large an
alneren from the facts and figures herein
resented. It actually was much larger CON
luerable sums bayins be-n acquired br
be Treasury within the several periods
tafed wltnont the issue OF bonds. On the
9th OF January, 1895, it was reported bY
be Secretary or the Treasury that murs
han SlI2.uU0.OOo OF Ruid had been with
rawn for boarding or shipment daring
be year preceding. He now REPORTS thai
rom January l. 1873. to july Il. 1880.
period OF more than eleven years. only
little over S26.0OD.UUO was withdrawn
I'D that between July IA. 1890, the date
7 the passage of the law far an Increased
urcbase OF silver. and the lst day of De
ember. 1895, OF within less than tive aud
half years. there was withdrawn marty
B. 5.ooo. 900. making total "f innre than
4o3 .poO.ooo drawn from the Treasury
gold since January [. 1879, the date
xed IN 1875 for the retirement of the
nited States notes.
Nearly 1927 .UUU. 900 OF the gold Tins
'ithdra wa has been paid out on these
nlted State tes notes and yet every one OF the
346 ,O0O.0 900 is still uneancelled and ready
do service In future gold depietions.
More than SI6 100000 in gold has
nee their creation in 1890. been paid out
oni the Treasury upon thenotes sgivenonthe
lrchase or silver by the government: aud
t the whole, amounting 10 S155, 100000
,cept little more than SIS 100000.
incn have been retired by exchanges Tor
LIVER at the request OF the holders remains
itstanding and prepa red TO Join their older
IL
ION the Treasurys gold reserve
In other words, the governmental b as aidfn
I'D more than nine-tenths OF lis United
ates notes, and stil owes them an. ~
is paid In gold about one-haH OF its notes
ven for silver purchases without extin-
Iishtng By such payment one dollar OF these
When, added to an this, we are reminded
at TO carry on this astounding financial
heme, the government has incurred a
nded Indebtedness OF sos. SOC, 900 in
a
8, 400 in efforts to maintain il: that the
nual interest charge on such bonded In
otednesS Is more than S1l 600 900; that
continuance In our present course may re-
lt II further bond issues, and that Wa
We suffered or are threatened with an
Is for the sake of supplying gold for for
n shipment OF facilitating its boarding
home, situation is exhibited which GER
nly ought to arrest attention and pro
ke immediate legislative relief.
THE FINANCIAL REMEDY.
am convinced the only thorough ana
acticabie remedy for our troubles is
md in the retirement and cancellation
our United States notes. commonly called
,enbacks, and the outstanding Treasury
tesissuedby the goverEmenti in paymenIof
yer purchases under the act of 1890
believe this could be quite readily ac-
nphshed by the exchange OF these notes
United States bonds of small as well as
ge denominations, bearing low rate
interest. They should be iong-term bonds
IS increasing their desirability as in
and because their payment could
well postponed TO a period tar removed
m present financial burdens and per-
kites, when with increased prosperity
resources they would be more easily
70 further insure the cancellation OF
Sc Dotes and alsu provide way by which
ID may be- added To our currency in lieu
them. feature IN the plan should be an
tbority given to the Secretary of tho
.asury to dispose of The bCIOs abroad for
dI necessary To- complete the contempIat-
redemption and caiicellatien. permitting
a to use the proceeds of such bonds TO
e up and cancel any of the notes that
v be in the Treasury or that may be re-
we'd by the government on any account
he increase OF our bonded uebt involved
this plan would be amply compensated