The advocate., 1895-12-11
which, In principle

fort and contentment for the sake OF accord
ing especial advantages to faVorites, and
which, while encouraging our intercourse and
trade with other nations recognize the fact
that American self-reliance, thrift and inge-
nuity can build up our cOuntry's industries and
develop its resources more surely than ener-
waiting paternalism. The c&mpulsory purchase
and coinage Of silver by the government, un-
checked and unregulated by business condi-
tions and needless Of our currency needs,
which, for more than fifteen years
diluted our circulating medium, UNDER
mined confidence abroad in our financial
ability and at last eliminated In distress and
panic at home has been recently stopped by
the repeal Of the laws which forced this reck-
less scheme upon the country. The things
thus accomplished, Notwithstanding their
extreme Importance and benefcent effects,
fell far short OF curing the monetary evils from
which we suffer as result Of long indulgence
In i'll advised financial expedients. The cur
rency denominated United States notes and
commonly known as greenbacks was issued In
large volume during the late civil war and in
tended originally to meet the emergencies of
that period
It will be seen by reference to the debates
In congress at the time laws were passed au-
thorizing the issue of these notes that their
advocates declared they were intended for only
temporary use and to meet the emergency Of
war. In almost, If not all the laws relating to
them some provision was made contemplating
their voluntary or compulsory retirement A
large quantity Of them, however, were kept on
foot and mingled with the currency Of the
country, so that Rt the close Of the year 1874
they amounted to 1881 ,99907S. Immediately
after that date and In January, 1875, law was
passed providing for the resumption OF specie
hryr ha ~ kha
ury was required, whenever additional
circulation was issued to national banks
to retire United States notes equal in amount
to so per cent Of such additional national
bank circulation until such notes were re-
duced'to 300000,0OO. This law further pro-
vided that on and after the first day Of Janu-
ary, 1879, the United States notes then OUT
standing should be redeemed in coin, and IN
order to provide and prepare for such re-
r demption the secretary Of the treasury was
authorized not only to use any surplus reVe-
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 forbidding
their further cancellation and retirement
S0iEe Of them had, however, been previously
redeemed and Cancelled upon the issue OF addt-
tional national bank circulation, as permitted
by the law of 1875, so that the amount out
standing at the time Of the passage Of the act
forbldding their further retirement was $685.
68I,016. The law OF 1873 did not stop at dis
tinct prohibition, but contained, in addition,
the following provision: "And when
any Of said notes may be redeemed or
Nn afryn1 snkO khn k,on tannh nTu
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 and made out again and kept
In circulation. This was the condition or az
fairs on the lst day Of January, 1879, 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
owing to the holders Of these notes debts pay
ablein 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 1t was forced to
redeem without redemption and to pay without
acquittance
There has been issued and sold S95, 500, 900 Of
the bonds authorized by the resumption act
OF 1875, 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 it 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 Sl0O,O0O0O0 has
been regarded as an adequate amount to ac-
complish its object This fund amounted on
the lst day Of January, 1879, to S114,l9O,136
and though thereafter constantly fluctuating,
1t did not fall below that sum in July, 1892. In
April, 1898, for the first time since its estab-
ishment, this reserve amounted to less than
SiOOO00,OOO containing at that date only So7,-
OIL $50. In the meantime and in July, 1890, an
act had been passed directing large govern