The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1895-12-10

.tempiating their voluntary or compul
sorry retirement. A large quantity O
them, however, were kept on foot an,
mingled with the currency OF th
. country, SO that at the close of tn,
year 1874 they amounted to 1881 ,099, ,073
Immediately after that date, and il
January, 1875, a law WAS passed pro
INiding for the resumption OF specie
payments, by which the Secretary o.
the Treasury was required, whenever
additional circulation WAS issued tc
national banks, to retire United States
notes equal In amount to 80 per cent
of such additional national bank Gin,
culation until such notes were reduced
to $300,000,000. This law further pro
vIded that on and after the first day OF
January, 1879, the United States notes
then outstanding should be redeemed
in coin, and In order to provide and
prepare for such redemption the Sec
retary OF the Treasury was authorized
not only to use any surplus revenues OF
the government, but to issue bonds of
the United States and dispose of them
for coin, aud to use the proceeds for
tho purposes contemplated by the
| statute.
In May, 1878, and before the date
| thus appointed for the redemption and
retirement of these notes, another
statute was passed forbidding their
further cancellation and retirement.
Some of them had, however, been pre-
viously redeemed and cancelled upon
the issue of additional national bank
circulation, as permitted by the law Of
1875, so that the amount outstanding
at the time OF the passage Of the Act
| forbidding their further retirement
was $346, 1851 ,0l6. The law of 1878 did
not stop at distinct prohibition, but
contained, in addition, the following
express 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 de-
stroyed, but they shall be reissued and
paid out again and kept in circula-
tion." This was the condition Of
affairs ON the first day of January,
1879, which had been fixed upon four
years before as the date for entering
upon the redemption and retirement
of all these notes, and for which such
abundant means had been provided
The government was put in the anom-
alous situation of owing to the holders
of its notes debts payable in gold on
demand, which could neither be re-
tired by receiving such notes in dis
charge of obligations due to the gov
ments in gold. 1t was forced to re-
deem without redemption and to pay
without acquittance.
CONGRESS WOULD NOT DO IT'S DUTY.
In anticipation of impending trouble
[ had on the 28th day of January, 1895,
addressed communication to the Con-
gress fully setting fourth our difficult
ties and dangerous position, and earn
estly recommending that authority be
given the Secretary of the Treasury
to issue bonds bearing a low rate OF in
terest, payable by their terms in gOle,
for the purpose OF maintaining suffi-
cient gold reserve, and also for the re-
demption and cancellation of outstand
ing United States notes and the treas
ury notes issued for the purchase of
silver unaer the law OF 1890. This re-
commendation. did not, however, meet
with approval.
In February, 1885, therefore, the
situation was exceedingly critical.
With reserve periiously low and
refusal of Congressional aid, everJ-
thing Indicated that the end of gold
payments by the Government was i'm
minent. The results of prior bond is
sues had been exceedingly unsatistac-
tory, and the large withraws of gold
immediately succeeding their public
sale in open market gave rise to rea-
sonable suspicion that a large part of
the gold paid into the treasury upon
such sales was promptly drawn put
again by the presentation of United
States notes or treasury notes and
found its way to the hands OF those
who had only temporarily parted with
1t in the purchase. of bonds. In the
emergency, and in view of its surround
ing perplexities, it became entirely
apparent to those upon whom the strug1 II
gle for safety was devolved not OnlNl
that our gold reserve must, for thdj
third time in less than thirteen months
be restored by another issue and sai9l
OF bonds bearing a high rate of Interest,"
and badly suited to the purpose, bu
that plan must be adopted for. thep
disposition promising better resulf
than those realized on previous sales
AM ,-agreementI. was, therefore, mad
with a number OF inanciers and bank
ers whereby 1t was stipulated thAtl
bonds as described In the Resumption
Act of 1875, payable in coin in thirty
years after their date, bearing interest
at the rate OF per cent. per annumJ
and amounting to about $62, 200, ,000A
should be exchanged for gold, receivaN
BILE by weight, amounting to O. littldl
more than SOS, 100000. This gold wal
to be delivered in such instalments' all
would complete It's delivery withil
about six months from the date of th|
contract and at least onehalf of w
amount was to be furnished frpt
abroad. 1t was also agreed by th6sI
supplying this gold that during thSl
continuance of the contract they wohldN
by every means in their power protect
the Government against gold with
drawals. The contract also provides
that If Congress would authorize their.
issue bonds payable by their terms in
| gold and bearing interest at the rate
of per cent. per annum might within
ten days be substituted at par fcsythe
4 per cent. bonds described In the
agreement.
| On the day that contract was made
/ its terms were communicated to Con-
| gress by special Executive message,
In which 1t was stated that more than
sixteen millions OF dollars would be
saved to the Government Ii gold bonhs
bearing 3 per cent. interest were ah-
thorized to be substituted for thoBe
mentioned in the contract. The Con-
lgress having declined to grant,the nac-
essary authority to secure this saving,
4 the contract, unmodified, was carribd
out, resulting liz a gold reserve amount
ing to $l07, ,671 ,230 on the 9Th day pf
y July, 1895. The performance OF tHis
Il u.