The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1895-12-06
TIE PRESIDENT HE8lf.
- Iram page oae.


This reserve. as has hesn. stated, had fallen
in April, 1898. TO 9591ttS3t Is has from that
5isne 20 the present With very few and imz
portant movements steaGilg decreased except
az it has been temporarily TeDienished 0g inc
sale OF bonds Among the causes for this con-
slant and Uniform shriakage in this fund may
be mentioned the falling Of Of experts under
the operation Of the tariff law until recently IN
force, WHICH crippled our exchange Ct COM
modtties with foreign nations and necessitated
20 some extent the payment OF our balances in
geld the unnatural infusion Of silver int our
currency and the increase in agitation
for It's free AMI anlimited coinage
which have created apprehension as to our dis
position or ability TO continue gold payments,
the CONSEQUENT boarding OF gold at home and
the stoDpage Of Investments Of foreign capital
as well as the return Of cur securities already
sold abroad and the high rate Of foreign ez-
change, which induce the shipment Of our gold
to be drawn against us as a matter OF specula-
ton. In consequence OF these conditions the
gold reserve on the 1st day Of February, 1894
was reduced to SIS. 1885,, having lost more
than S3l e0J0}3 during the preceding nine
months. or since April, 1893 It's replenishlneDt
being necessary and no other manner Of ag-
comprising it being possible, resort vas
had to the Issue and sale Of bonds pro-
yidsd for by the resumption act Of 1879
Fifty millions Of these bonds we're sold, yield
ing $50 $50 295.7l which was added 70 the re
serve fund Of gold then on hand. As result
of this operation this reserve, which had SUI
feFed constant and large Withdrawals in the
meantime, stood on the 9th day Of March, 1894
at the sum Of sl07,446,S)}. Its depletion was,
however, immediately thereafter SO accelerated
that OF the 9th day Of June, 1891, it had fallen
TO s54673,02j, thus losing Big Withdrawals more
than S42 90, 100 In Eve months aud dropping
slightly below this situation when the safe Of
s5GOO0,OO0 in bonds was efeetedfoT its redemp-
ton. This depressed condition grew worse,
snd on the 10Th day Of November, 1894
CUR gold reserve was drained to S1,a69.0l.
1t became necessary to again strengthen it.
This was done by another sale Of bonds
amounting to 5500lO,000 from which there was
realized $58, 558 800 with which the fund was in
creased to Sill, 012 OF on the lth day Of De-
cembeT, 1884, Again disappointment awaited
the anxious hope for relief There Was not
even a lu!l il the exasperating Withdrawals Of
gold. On the contrary. theI grew larger and
more persistent than ever Between the 4th
day Of December, 1891, and early in Febr Uary,
1895, q period of scarcely more than Two
months after the second reinforcement Of our
gold reserve by the sale Of bonds it had lost
by such Withdrawals more than SEQ. 600 900, and
had fallen 10 81 % ISL Nearly S43 900, O0j had
Leeu ritdraWn within tile month immediately
preceding this situation.
n this emergency and in view Of IFS sur
rounding psrpl5xity, it became entirely appar-
ent to thos5 upon whom ti:e struggle for saietY
was devolYed hot only that cur gold reserve
must, Tor the fhird time n less than thirteen
months, BE- restored by another issUe and sale
Of bends bearing rate r, interest enc badly
suited 20 tleil purpc,o, but that plan must
he adopted for ttoiT disposition promising bet
Ter results ttan realized Oh tho previous sales.
An agreement therefore, vas made With g.
number OF inaacisrs and bankers whereby
It was stipulated tnat bonds de-
seribcd in the resumption act OF 1878
payable IN coin thirty years after their daie,
bearing interest at She rate o. z par cent per
annum and amounting to about 1900 .00C
should be exchanged FOR gold, receivable Dy
weight, amounting 60 little more than $685.,
100000 It's good results could not he perIla-
ueut Recent Withdrawals have reduced This
reserve from $4,000 25O Oh the Ct dsy q July.
1895, to 515,335 g56
On The 2sth oi January. 1895, it was reported
by 5he secretary Of The treasury that moro
than 5152 COO Of tbe sold had been With
drawn Tor boarding or shipment during the
year preceding. BE Low reports that from
January T. 1873 90 July Il, 1899, period of
more than eleven years, Cniy little over S28,-
900 $50 vas Withdrawn, and that between July
"A, 1880. tie cate " TIE passage If Che law Or
an Increased purchase Of silver GGG the ISL
day Of December lS9i. or within loss than Eve
and haif years, there vas withdrawn nearly
1875 GOO OM making 5Ctal If zOre than S+)3,
OOOOO0 drawn from tie treasury geld since
g. -
retirement q tbC United States notes
Nearly 1890 GG0 Of tie geld thus withdrawn
has been paiG JUt ca thsss United States notes,
and yet every one OF the $4,000 900 is still IN
Cancelled ana ready 70 d. service in future
gold depetions. 10 other words, the govern
ment has paid in geld more than uin6-tanths
OF its United States notes and still owes them
ali it has paid IN gold about 0ne-half Of It's
notes given for silver purchases without exc
tinguis1ug By such payment 81 Of these notes
And added 10 al this we are reminded that To
carry out this astounding financial system the
government has incurred q bonded indebted
ness Of So, 0l00i in establishing gold reserve
and ofSi6! 3l5,4O1 in efforts 70 maintain It.
am convinced lie only thorough ana prac-
ticable remedy for cur troubles is found il the
retirement ana cancellation Of our United
States notes, commonly called ereenbacks and
the outstanding treasury notes issued by the
government in payment Of silver purchased
under the act Of 1850
The currency withdrawn by the retirement
Of the United States notes and treasury notes,
amounting 10 probably less than S60000J0,
might be supplied by such gold as would be
used On bAeir retirement or by an increase IN
the circulation OF orr national banks Though
the aggregate capital of these now in existence
amounts TO more shan s66600lcO0, their OUT
standing circulation based On bond security
amounts 10 only about Si9JG10 COO
Think they ought 10 be allowed to issue cir
culation equal 10 the par value Of the bonds
they deposit to secure it, aud thar the tax on
their circulation should he reduced to 4 OF per
cent, which Eould undoubtedly meet al the
expenses the government inCurs on their ac-
count do not overlook the fact that the can
collation. of the treasury notes issued under
the silver purchasing acU OF 1885 would leave
the treasury in the actual ownership OF sufi-
eient silver. including seigniorage TO coin
nearly si78.0]00 goo in standard dollars. It is
worthy Of consideration whether this might
not from time to time, be converted into DOL
lars or fractional coin and slowly put into cir
oulation,
In the present stage Of our dificulty it is
not easy TO understand how the amount Of our
revenue receipts directly affects it The i'm
portant question is mol the quantity of money
received in revenue payments, but the kind Of
money we maintain and our ability to continue
in sound financial conditions. We are censid-
ering the government holding Of gold as re-
lated to the soundneSs of our money and rs af-
lec5ing our national credit and monetary
strength If our gold reserve had never been
impairedi if no bonds had been issued to re-
pleEish; il there had been no fear aud
timidity concerning our ability to continue
gold payment il any part OF our
revenues were now paid In gold;
and if we could look to our gold receipts rs
means Of maintaining a safe reserve. the
amount Of our revenues would be an infueE-
tisl factor in the problem. But unfortunately
al the circumstances that might lend weight
70 this consideration are entirely lacking u
our present pFedieament no gold is received by
the governmeRtin payment of revenue charges,
nor would there be If the revenues we're in
creased The receipts o. the treasury when
not ia silver certificates consist OF United
States notes and treasury notes. issued for sill
yer purchases These forms of money are only
useful TO the government in paying its eur
rent ordinary expenses and its quantity
in government possession docs not il the
least contribute toward giving us the kind Of