The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1895-12-12


kets OF the world. has been superseded
by a tariff policy which. In principle.
Is BASED upon denial of the rights OF
the Government to obstruct the ay-
enues to our peoples cheap living or
lessen their comfort and contentment
Tor the sake of according especial ad-
Vantages to favorites, and which. while
encouraging our intercourse and trade
Win other nations. recognizes the fact
that American self-reliance, thrift and
ingenuity can build up our country
industries and develop its resources
ism. AN
SILVER REPEAL INSUFFICIENT
The compulsory purchase and coin
age OF silver by the Government nm
checked and unregulated by busInas,
conditions and needless of our cur
rency needs. which for more than fif-
teeh years diluted our circulating medi-
UNI, undermined confidence abroad In
our financial ability, and Mt last ouI-
minated in distress and panic at home
mas been recently stopped by the re-
peal or the laws which forced this reck-
less scheme upon the country. The
Things thus accomplished, notwith-
stahuihs thelr extreme Importance and
benetcent effect, fall far short of cur
ing the monetary evils from which we
suffer. as result of long indulgence
IN lll~advised financial expedients
THE GOLD RESERVE.
There had been issued and sold $685.
5OO,00O of the bonds authorized by the
resumption act of 1876, the proceeds OF
which. together with other gold in the
treasury, created a gold fund deemed
sufflcient to meet the demands which
might be made upon 1t for the redemn-
ton of the outstanding United States
notes. This fund. together with sucb
other gold as might be from time 10
time In the treasury available for the
same purpose, has been since called
our gold reserve, and $4,000 900 has
been regarded as an adequate amount
to accomplish its object. This fund
amounted on the first day of January
1879. to STA, 193.360, and though there.
after constantly fiuctuating, II did not
TALL below that sum until July. 1892. In
April, 1893, for the first time since it's
establishment, this reserve amounted
tn less than 500. O00. 900. containing at
that date only $97.O11. $3.50.
SILVER PURCHASE NOTES.
In the meantime, and in July 1890
an act had been passed directing larger
Governmental monthly purchases of
silver than had been required under
previous laws. and providing that. in
payment for such silver, treasury notes
OF the United States should tie issued,
payable on demand In gold or silver
com at the discretion of the Secretary
OF the Treasury. 1t was, however, de-
clared In the act to be "the established
policy of the United States to maintain
the two metals on parity with each
other upon the present legal ratio OF
such ratio as may be provided by law"
In view of this declaration, II was
not deemed permissible for the Secre-
tary OF the Treasury to exercise the
discretion in terms conferred on him
by refusing to pay gold on these notes
when demanded. because by such dis
crlihlnation In favor of the gold dollar
the so-called parity of the two metals
would be destroyed, and grave and
dangerous consequences would be pre-
cipltated by affirming or accentuatinr
the constantly-widening disparity be-
tween their actual values under the ex
listing ratio.
IL thus resulted THAT treasury notes
ISSUED In payment of silver purchases
under the law of 1890 were necessarily
.,eated as gold obligations, at the OBJ
tlon OF the holder. These notes on the
dst OF November, 1898, when the law
vo,,ipelilhg the monthly purchase of sill
yer was repealed, amounted to more
than $l55,OOO,OO0. The notes of this
description now outstanding, added 10
, ,me united states notes still undimin-
loileu py redemption OF cancellation
t,pilstitute a volume of gold obliRa-
s r, amounting to nearly $500 900 t1oO
Ihese obligations are the Instruments
rasnr eyer since we have had q gold
MI, We, nave been used to deplete II.
ms reserve, as has been stated had
mas from that time to the present WITH
very few and unimportant upward
movements. steadily decreased, except
as !. mas been temporarily repienished
py the sale of bonds. Among the
causes OF this constant and uniform
shrlhkage In this fund may be men
Toned the great falling off of exports
under the operation of the tariff law
aecently In force, which crippled our
eAcnanse OF commodities with foreign
nations. and necessitated to some ex.
zen. tne payment of our balances In
gold; the unnatural infusion OF silver
INTO our currency and the increasing
agitation for Its free and unlimited
coinage, which have created apprehen-
sion as to our disposition or ability to
continue gold payments; the conse-
Iuent hoarding of gold at home and
iP'eoN VI Oh foreign
capltal as well as the return of our
securities already sold abroad; and the
nlgh rate OF foreign exchange which
induced the shipment of our gold To
pc drawn against, as a matter OF spec
ulation.
ISSUES OF BONDS.
IN consequence OF these conditions. the
soiu reserve on the LIST day of Febru-
ary 1894 was reduced TO $65, ABS, 377.
having lost more than $31, 000, 900 during
the preceding nine months, or since
April, 1893. Its replenishment being
necessary, and no other manner Of ic.
complishing It being possible, resort
was had TO the issue and sale of bonds
provided for by the resumption act of
lS!5. Fifty millions of these bonds were
sold. yielding $5S,633, 295.71, which was
AIDED to the reserve fund of gold then
on hand. AS result of this operation.
the reserve, which had suffered CON
slant and large Withdrawals in the
meantime, stood on the 9Th day of
March, 1894, at the sum of slO7, 448. 1902.
JUS depletion was, however Immediate
~ thereafter so accelerated that on the
soth day Of June, 1894, 1t had fallen Ia
S64,Sf3025. thus losing by Withdrawals
more than $42,000.OOO in five months
ana dropping slightly below its situa-
tlon when the sale of $50 OOO. 900 In
ment. ''
This depressed condition grew worse
and on the oath day of November. 1894
our esr e gold reserve being rednced to $751;.
ooo' 'Ul, IL became necessary to again
strengthen It. This was done by an.
other sale of bonds. amounting to $50.
oo0,000. from which there was realized
zoe, bsS, 300, with which the fund was
lnnrpnGnd IN
of December, 1894.
Again disappointment awaited thu
anxious hope for relief. There was MOI
Even a luil IN the exasperating with
grew larger and more persistent thar
ever between the 9Th day of December
1875. and early in February, 1896, 8
months after the second reinforcenen,
OF our gold reserve by the sale OF
bonds. 1t had lost by such withdrawal
more than $69, 0OO, 900 and had fallen r.
a,Ix