The Butler weekly times., 1895-12-05

order to provide and prepare for such re-
demption the secretary OF the treasury was
authorized not only to use any surplus reye-
nues of the government, but to issue bonds OF
the United States and dispose OF them for
coin and to use the proceeds for
the purposes contemplated by the statute,
In May, 1873, and before the date thus appoint
ed for the redemption and retirement OF these
notes, another statue WAS passed foroidding
their further cancellation and retirement
Some OF them had. however. been previously
redeemed and cancelled upon the issue OF addi-
tional national bank circulation. as perGitted
by the law OF 1873, that the amount out
standing at the time OF the passage of the act
forbidding their further retirement WAS S5,-
6si .0i6. The law OF 1878 did not stop at dis
tinct prohibition. but contained, Ia addition,
the following provision: And when
any Of said notes may be redeemed or
be received into the treasury, under any
law, from any source whatever, and
shall belong to the United States, they shall
not be retired. Cancelled. or destroyed, but they
shall be reissued aud made out again and kept
in circulation This was the condition OF al
fairs on the lst day OF January, 1872, which had
been fixed upon four years before as the date
for entering upon the redemption and retire
ment of all these notes. and for which such
abundant means had been provided. The gov
ernment was put In the anomalous situation OF
able in gold on demand. which could neither be
retired by receiving such notes in discharge of
obligations due the government, nor Cancelled
by actual payment in gold. II was forced TO
redeem without redemption and TO pay without
aequittance
There has been issued and sold 95.5o).ooo OF
the bonds authorized by the resumption act
of 1879 the proceeds OF which, together with
the gold in the treasury. created gold
fund deemed sufficient to meet the demands
which might be made upon il for the redemp-
tion of the outstanding United States notes.
This fund, together with such other gold as
might be from time to time in the treasury
available for the same purpose, has been since
called our gold reserve and sioo,O0loo0 has
been regarded as an adequate amount 10 ac-
complsh its object This fund amounted on
the lst day Of January, 1879. TO slii. 1876
and though thereafter constantly ductuatiug
it did not fall below that sum in July, 1892 In
Anril. 1898, for the first time since its eStao
lishmeut. this reserve amounted TO less than
300 900, 900, containing at that date only s9.,
OIL ,330 In the meantime and in July, 1890. an
act had been passed directing large govern
mental monthly purchases Of silver than had
been required under previous laws and provid
ing that in payment for silver treasury notes
OF the United States should be issued payable
on demand in gold or silver coin at the diScre-
tion of the secretary of the treasury, 1t was,
however, declared in the act to be the estab-
iished policy OF the United States to maintain
the two metals on parity with each
other upon the present legal ratio, or
such ratio may be provided by law.
In view of this declaration it not deemed
permissible for the secretary 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 discrimina-
tion in favor OF the gold dollar. the so-called
parity of the two metals would be destroyed
DANGEROUS
be preci ipitated by affirming accentuatiug
the constantly widening disparity between
their actual value under the existing ratio
These obligations are the instruments which
ever since We have had a gold reserve. have
been used to deplete it
This reserve, as has been stated. had fallen
in April, 1898, to S97 Oh 33l 1t has from that
time to the present. with very few and i'm
portant movements. steadily decreased, except
as il has been temporarily replenished by the
sale of bonds Among the causes for this con-
stant and uniform shrinkage in this fund may
be mentioned the falling of OF exports under
the operation OF the tariff law until recently in
| force which crippled our exchange of COM
modities with foreign nations and necessitated
| to some extent the payment of our balances in
| gold the unnatural infusion OF silver into our
currency and the increase in agitation
| for its free and unlimited coinage
which have created apprehension as to our dis
| the consequent boarding Of gold at home and
| the stoppage of investments of foreign capital
as well as the return of our securities already
| sold abroad and the high rate Of foreign ex-
change, which induce the shipment OF our gold
| to be drawn against us matter OF specula-
tion. In consequence of these conditions the
gold reserve on the Ist day of February 1894,
| was reduced to s65 ABS ,377, having lost more
| than s31 ,00)0o0 during the preceding nine
months, or since April. 1893 Its replenishment
| being necessary and no other manner OF ac-
complshing it being possible, resort was
had to the issue and sale OF bonds pro-
| vided for by the resumption act of 1879.
Fifty millions Of these bonds were sold, yield
ing $50, ,633, 1871. which was added to the re-
| serve fund of gold then on hand. As q result
| of this operation this reserve. which had suf-
| fered constant and large Withdrawals in the
| meantime, stood on the 9Th day OF March, 1894
| at the sum of al07 ,446, s0.. Its depletion was
however. Immediately thereafter so accelerated
that on the 3)th day of June. 1894, 1t had fallen
| to S64 s73, OBS thus losing by Withdrawals more
than S42, 900 900 in five months and dropping
slightly below this situation when the sale Of
$50 900, 900 in bonds was effected for its redemp-
| tion. This depressed condition grew worse
| and on the Goth day Of November. 1894
| our gold reserve was drained to 81 ,069 OF
| 1t became necessary to again strengthen it.
| This was done by another sale OF bonds
| amounting to $50 000. 600, from which there was
realized S5o. .53s 500 with which the fund was in
creased to Bill .o12 o21 on the 3th day OF De
cember, 1894 Again disappointment awaited
| the anxious hope for relief There was no
even lull in the exasperating Withdrawals o
gold. On the contrary, they grew larger anG
| more persistent than ever. Between the 1t,
day of December, 1894. and early in Febr uary
| 1895, period OF scarcely more than two
months after the second reinforcement OF oul
| gold reserve by the sale Of bonds it had los
| by such Withdrawals more than a59. 900 .DO0 and
had fallen to s41 03) ISL Nearly s43, 900 o0J hat
| been withdrawn within the month immediatel,
preceding this situation
In this emergency, and in view Of its sur
| rounding perplexity it became entirely sppar
| ent to those upon whom the struggle for safet,
| was devolved not only that gold reserv
must. for the third time In less than thirteel
| months. be restored by another issue and sal
Of bonds bearing rate Of interest and badi
suited to their purpose, but that a plan mus
be adopted for their disposition promising bet
ter results than realized on the previous sales
An agreement, therefore. was made with
number of fnanciers and bankers whereof
it was stipulated that bonds de
scribed in the resumption act OF 49,
payable in coin thirty years after their date
bearing interest at the rate Of 4 per cent pc