The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1895-12-04

NVsefn"ens WAS lmminent. The re-
suits OF prior bond issues had been ex.
ceeaingly unsatisfactory n the large
withdrawals OF gold Immediately euo-
ceeding their public sale in open market
ave rise to 9 reasonable suspicion that
q large part Of the gold paid into the
treasury upon such SALES WAS PROMPTLY
drawn out again by the presentation Of
United States notes or Treasury notes
anu found Its way to the hands of those
who had only temporarily parted with
lsln the purchase OF bonds.
| In the emergency and in view of
surrounding perplexities, 1t became en-.
.,rely spparent to those upon whom
the struggle for safety was deyolved
not only that our gold reserve must
tor the third time in less than thir-
teen months be restored by another
issue aod sale of bonds bearing a high
rate OF interest and badly suited to the
purpose, but that a plan must be
adopted for their disposition, promising
better results than those realized on
previous sales.
An agreement WAS therefore made
with o number Of %6nanciers and bankers,
whereby IL was stipulated that bonds
described N the resumption act OF 1875,
payable in coin thirty years from their
date, bearing interest OF the rate of 4
per can't. par mum, and amounting to
about S62, 000, 000, should be exchanged
Tor gold receivable by we ght, amount
ing 10 q little more than S65, 600. 600.
Ihis gold WAS to be delivered in such
instalments as would complete its de-
livery within about six months from the
GATE OF the contract and at least one-
half OF tho amount was to be furnished
from abroad. 1t vas also ag eed by
those supplying this gold that during
the continuance nf tho ooDk, 49,
would by every means in their
protect the Government against with
drawals.
The CONTRACT also provided that IL
Congress would authorize their issue
bonds payable by their terms in gold
and bearing interest at the rate of
three per cent. per anpum might within
ten days bs substituted at par for the
Tour per cent. bonds described in the
agreement. On b day this contract
was made It's terms we're communicated
to Congress by s special executive mes
sage, and 1t WAS sta ted that more than
Si6, 900, 900 would BIO saved to the Gov
eminent IL gold bonds bearing three
per cent. interest were authorized to be
substituted for those mentioned In the
contract.
The Congress having declined to
grant the necessary authority to secure
this saving, the contract unmodihed waa
carried out, resulting in q gold reserve
amounting to Sl07, SIC. $40 on the 9Th
day OF July, 1895. The performance of
this contract not only restored the re-
serve, but checked for a time the with
drawals OF gold and brought on a rericd
OF restored confidence, such peace and
quiet in business circles ms we're of the
greatest possible value to overy interest
That AFFECTS our people. l have never had
the slightest misgivinR concerning the
wisdom or proprlety OF this arrangement
and am quite willing to answer for nv
full share Of responsibility for it's pro-
motion. 1 believe 1t averted a disaster,
tho imminence OF which was fortunately
not ut tho time generally understood by
our people. Though the contract men,
toned stayed for a time the tide of gold
Withdrawals, It's good results could not
have reduced the reserve from SlO7, 57I,-
230 on the Sth day of July, 1895, to
SO, 333 9G6.
How long itswill remain large enough
to render rs increase unnecessary Ia
only a matter OF conjecture, though quite
large Withdrawals for shipment in the
Immediate future are predicted in we'll
informed quarters. About SIG, coo, 900
has been withdrawn during the month
OF November. The foregoing statement
OF events and conditions ana facts show
that by an indebtedness of more than
Sl62, 600. 900 to save our gold reserve, we
are nearly where we started, having now
In such reserve $40. 333, 9se as against
S65,43S 377 In February, 1894, when the
hrst bonds were issued.
Though the amount of gold Withdrawn
from the Treasury appears to be very
large, as gathered from the facts and
figures herein presented, It actually was
much larger, considerable sums having
been acquired by the Treasury within
the several periods stated without the
issue of bonds. On January 90, 1895,
1t was reported by the Secretary of the
Treasury that more than Sl7O, 900, 900 OF
gold had been withdrawn for boarding
or sbipment during the year preceding.
lie now reports that from January /,
1879. to July IA, 1890. q period OF more
than eleven years, only 8 little over S2s,.
600, 600 was withdrawn, and thai be-.
tween July IA. 1890. the date OF the
passage OF the law for an increased pur.
chase OF silver, and December 1, 1895,
or within less than five and q b alf wears.
there was Withdrawn nearly S375, 0O0,-
600, making q total Of more than S4O3,-
600. 600 drawn from the Treasury in gold
since January l, 1879, the date hxed in
1875 for the retirement Of the United
States notes.
Nearly S327. COO. OOO OF the gold thus
Withdrawn has been paid out ON these
United Staten notes and every one of
the SlA6. 600, 600 is still ~uncsncelled and
ready to do service again in future gold
depletions. More than SIG, 900, 600 ia
gold has, since their creation in 1890,