The record-union., 1895-12-04

Gate, bearing interest at the rate Of q
Fer cent. per annum, and amounting to
about S62,000,000 should be exchanged
for gold, receivable by weight, amount
Ing to a little more than S65 ZOO, 600.
This gold was to be delivered in such in
stallments as would complete its deliv-
cry within about six months from the
date OF the contract, and at least one
half of the amount was to be furnished
from abroad. It was also agreed by
those supplying this gold that during
the continuance of the contract they
would by every means in their power
protect the Government against gold
Withdrawals
THE FAMOUS GOLD CONTRACT.
The contract also provided that if
congress would authorize their issue,
bonds payable by their terms in gold,
and bearing interest at the rate of 3 per
cent. per annum, might within ten days
be substituted at par for the 4 per cent.
bonds described in the agreement. On
the day this contract was made, its
terms were communicated to Congress
by a special Executive message, IN
which it was stated that more than
$4,000, 600 would be saved to the Gov
ernment if gold bonds bearing 3 per
cent. interest were authorized to be sub
stituted for those mentioned in the con-
tract.
The Congress having declined to
grant the necessary authority to secure
this saving, the contract unmodified
was carried out, resulting in gold re-
serve amounting to $107 81, $50 on the
Sth day of July, 1895. The perform
ance of this contract not only restored
the reserve but checked for a time the
withdrawal of gold and brought on a
period of restored confidence, and such
peace and quiet in business circles as
were of the greatest possible value in
every interest that affects our people.
1 have never had the slightest mis-
giving concerning the wisdom or pro-
priety of this arrangement, and am
quite willing to answer for my full
share of responsibility for its promo
ton. l believe it averted a disaster,
the imminence of which was FORUM
ately not at the time generally under
stood by our people. Though the con-
tract mentioned stayed for a time the
tide of gold withdrawal its good re-
suits could not be permanent. Recent
Withdrawals have reduced the reserve
from $107, 81, 800 on the Sth day of
July, 1895, to $40, ,333, $50. How long
1t will remain large enough to render
Its increase unnecessary is only matter
of conjecture, though quite large with
drawals for shipment in the immediate
future are predicted in well informed
quarters. About S16,000,000 has been
withdrawn during the month Of No
vember.
BACK TO STARTING POINT.
The foregoing statement of events
and conditions develops the fact that
after increasing our interest-bearin
bonded indebtedness more than one
hundred and siXty-two million dollars
to save our gold reserve We are nearly
where we started, having now in such
reserve S79, ,333, 966 as against $50, 43S,-
379 in February, 1894, when the first
bonds were issued. Though the amount
of gold drawn from the treasury ap-
pears to be very large, as gathered
from the facts and figures herein pre-
sented, it actually was much larger,
considerable sums having been ac
quired by the treasury within the sew
eral periods stated without the issue of
bonds.
On the 2Sth of January, 1895, it was
reported by the Secretary of the Treas
ury that more than SIP, 100000 of gold
had been withdrawn for boarding or
shipment during the year preceding. He
now reports that from January /, 1879,
to July II, 1890, a period of more than
eleven years, only a little over S2S,-
600 600 was withdrawn, and that be-
tween July II, 1890, the date of the
passage of the law for an increased pur-
chase of silver, and the 1st day of De-
cember, 1895, or within less than five
and a half years. there was withdrawn
nearly 1919, 600 600, making total of
more than S40T 900, 600 drawn from the
treasury in gold since January l, 1879,
the date fixed in 1875 for the retirement
of the United States notes.
Nearly 1927 600, 900 of the gold thus
withdrawn has been paid out on these
United States notes, and yet everyone
H. i
and ready to do service in the future
gold depletions. More than S15,000,00
in gold has since their creation in 1890
been paid out from the treasury upon
notes given on the purchase of silver by
the Government, and yet the whole
amounting to S153, ,O00,0 600, except a lit
tie more than SIG 600. 600, which have
been retired by exchanges for silver at
the request of the holders, remains out
standing and prepared to join their
older and more experienced allies in
future raids upon the treasury's gold
reserve.
ASTOUNDING FINANCIAL SCHEME.
In other words, the Government has
paid in gold more than nine-tenths Of
its United States notes and still owes
them all. It has paid in gold about one
half of its notes given for silver pur-
chaseS without eXinguiShinS by such
payment 81 OF these notes. W zen duueQ
TO all this we are reminded that to carry
on this astounding financial scheme the
Government has incurred bonded in
debtedness of &95 000,000 IN establish
ing a gold reserve, and of S162, SO, 400
in efforts to maintain ii, that the an
nual interest charge on such bonded in
debtedness is more than 100000;
that a continuance in our present course
may result in further bond issues, and
that we suffered or are threatened with
all this for the sake of supplying gold
for foreign shipments or facilitating its
boarding at home, a situation is eX-
hibited which certainly ought to arrest
attention and provoke immediate legis-
lative relief.
THE PRESIDENTS PLAN.
I am convinced the only thorough
ard practical remedy for our troubles
IS found in the retirement and can
collation. Of our United States notes
commonly called greenbacks, and the
outstanding treasury notes issued by
the Government in payment of silver
purchases, under the Act Of 1890.
[ believe this could be quite readily
accomplished by the exchange of these
notes for United States bonds Of small
as well as large denominations, bearing
q low rate Of interest. They should be
COIN