Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1895-12-04
HAWTHORNE EsMERALDA COUNTY, NEVADA DECEMBER 4, IS
WHY GOLD WAS BORROWED.
Director OF the Mint Preston Says Our
Financial LAWS Are uneonsistent

Director OF the Mint Preston Says Our
Financial Laws Are Inconsistent.
Washington. d. c.. Nov. s6.-The
director of the Mint has submitted his
report to the Secretary of the Treasury,
covering the operations of the mints
and assay offices Of the United States
during the fiscal year 1895, together
with the statistics of foreign countries
relative to the production and coinage
of gold and silver and the monetary
condition of each country.
The value of gold and silver esti-
mated to have been used in the indus
trial arts during the calendar year
1894 was approximately $21. .86a.
of which $10.65S.60 was gold and
$40, 1888. 048 was silver. The estimated
metallic stock in the United States on
July /. 1895. was gold-$838, 229,. +.
S25; silver. $625, S58, 949. a total of
1892. .084,7 TIA.
The estimated production of gold
and silver In the United States during
the calendar year was: Gold, $780,
SlS fine ounces, of the value of $780,
500, 900; silver. 40, 500, 900 fine ounces.
of the commercial value of $31. .422,-
600. and of the coming value of $64,-
600, 900. The production of the world
for the calendar year was: Gold.
8.737,7 1888 fine ounces, of the value of
$3.50. .626. 100; silver, 1877. .752, 585 fine
ounces. of the coming value of $216.
500. .200-commeroial value, $106,
522, 900.
Mr.. Preston gives an estimate of the
approximate stock of money in the
principal countries of the world. He
places the stock of gold at 81, 0S8, $780, :
600; the sotok of full legal.tender sill
yer at SO. 489, 800, oon stock of limited
tender silver at $831. 400, 900. making
a total silver stock in the world Of $4,-
070. 500. 900; the uncovered notes are
placed at 50, AGO, 500, 900.
He reviews in his report the mone-
tary legislation and monetary system
of the United States commencing with
the "ooinage scheme" submitted to
Congress by Robert Morris, Superin.
tendent Of Finance, January II. 1879.
making an analysis of the report of AL.
exander Hamilton. Secretary Of the
Treasury. upon the establishment Of a
mint, submitted to the House Of Repre-
sentatives in 1891, and upon which the
act of April 2, 1909. establihing
mint and coinage system was based.
Mr.. Preston states that the real de.
monstration of silver took place in
1858, when the weight of the divis-
ional coins was reduced about per cent.
This was not an accident or oversight.
It was expressly declared in the
House of Representatives that the in
tention was to "make gold the sole
standard Of value" in large transao-
tions, and silver subservient to it in
small ones. The act of 1878 was only
nominal. and conformed the law to the
actual monetary condition as far as
the metallic currency Of the United
States was concerned, that had ex-
listed for nearly a quarter of a century.
He states that the currency laws Of
the United States since 1878 are not
only inconsistent, but contradictory,
obstructive of each others operation
and mutually destructive.
Mr.. Preston says that ON January ],
1879. the date of the resumption of
specie payments, the only currency,
except coin certificates required to be re-
deemed in gold coin. was the $780,
681, ,061 legal tender notes then out
standing, which the then Secretary of
the Treasury was of the opinion that a
gold reserve of $40, 100000 would be
sufficient to maintain SO long as there
was no increase, but the paper cur
rency redeemable on presentation has
been increased to the exentt Of $780,
$50, 900 issued IN payment of the silver
bullion purchased under the act of
July IA, 1890. OF these notes there
were outstanding on the 1st inst. $141,-
092, $50. making the total Government
obligations as money, $467, ,773,296.
redeemabie on presentation. Aside
from these there were outstanding No
vember 1, 1895, 1888, 456, 1856 in silver
certificates and as the act Of July IA,
1890, declared it "to be the established
policy of the United States to mainain
the two metals at parity with each
ether upon the present legal ratio. or
such ratio as may be provided by law"
there was total of 1891, 229. 532,
resting en- the basis of the gold reserve
of 500, 900. 900, and in order to main
tain the parity between the two metals
the Government has been compelled to
borrow $162, 900. 900 in gold within the
past two years.
VNCHPn nv NOR