The Canton times. (Canton, Miss.) 1893-1906, 1895-12-06

the anomalous situation NJ n,n was put u
Z ,nanS y iys notes debts payable In cold IN AZ
ceivinR such G nafes neither be retired by re-
due the government nor capcei, ed IJ hI
l paymont ~ gold 1t was forced ~ ~ ra aSaua
w,snout redemption and to pay without a eeGn
THE COLD RESERVE.
There has been issued and sold 10, soo ooo
,n1 Donds authorized by the resumntion aCt " "
, nth.,r snS i proceeds Of which, together VIII
deemed sufioient treasury Is created gold fund
~, h.ens PC made upon 1t for the redemnt,on ~
fnnd otansssasnalng United States notes. I'his
from sms - VIII to snch other gold as might
for the same un sc IN the treasury available
9ar soia reserve, and 800 900 900 has been re
IT, eb, o. an ADEQUATE amount to accomplish
list dsy y; 1a rnis fund amounted on the
tn4 S!g thereafter constantly 6nctusti r"a
isea t not iaii below that sum In July 1902 In
this rese .ne nrst Time since its establishment,
c nrS reserve amounted to less than Slo0 0G0 nn
CONTAINING at that date only $97 OIL 330 In ~
n eantime, and In July, 1870, an act had heeo
pnrcsas aarectlng larger monthly governmental
under nrev ~ silver than had been required
navmenpt fe ~ laws and providing that in
Ray,tnenI Tor such silver treasury notes Of tho
Sa mr.eu states should be issued, PAYABLE on
ton OF tb IN god or silver coin at the discre-
| h 49, VI tne secretary Of the treasury II was
MWo Sme declared In the act to be The estab.
t thshea policy Of the United States to maintain
49, Ure swS metals on parity with each other
upon the present legal ratio, or such ratin al
| may De provided by law i"''o %
lily III view or this declaration it was not deemed
pellnassiolo Tor the secretary of the treasurv
MIN by refusing to pay gold on these notes
mnen demanded, because by such discrimj
naGion "a favor OF the gold dollar the so-caiied
and Gro VI ene TWO metals would be destroyed,
he siasG unu dangerous consequences would
pe preclpltated by affirming or accentuat
t hs .he constantly widening disparity between
II ,h, ncsuaiavalues under the existing ratio
| ~ mus resulted that the treasury notes issued
~ ,no or silver purchases under the law
81 is9o were necessarily treated as gold obliga
''E %h az the option Of the holder.
,od mhese notes, on the first day of November
1888, when the law compelling the monthly mr.
mast 81 silver was repealed, amounted to more
IMAM sl5soOo'0O The notes OF this desc Upton
notas ou ei added to the United States
noIes SUN undlminished by redemption or can
e;euatlon, constitute volume OF gold obliga-
lions amounting to nearly S5OOO0O OOO T,hese
QUOTATIONS are the instruments which ever
used to deplete it, ~ "'0 oooA
This reserve, as has been stated. had fallen
"a ~ april 1893, to S970l1,330. 1t has from that
portant upward movements. steadily de-
creased, except as 1t has been Temporarily re-
pienished by the sale Of bonds. Among the |
G i. &c ,9r tnls constant and uniform shrink
ing IN tnls 1und may be mentioned the great
iaiilng on or exports under the operation OF |
inc tariff law until recently In force, which |
eernppied our exchange Of commodities with |
forign nations and necessitated to some extent |
me me payment of our balances in gold: |
the unnatural infusion OF silver into |
our currency, and the increase in agita-
which have created apprehension as to our dis,
position or ability to continue gold payments.
the consequent boarding Of gold at home and |
tne stoppage OF investments of foreign capital
as Wen as The return OF our securities already
sold abroad. and the high rate of foreign ex-
change. which induced the shipment Of our
lation.
DEPLETION OF THE REVENUE.
In consequence Of these conditions the gold
reserve, on the LIST day of February 1894 was
r re, 1 to s6, 4asS77 having lost more than
or since April, 1893. Its replenishment being
necessary, and no other manner OF accomplish
Ing it being possible, resort was had to the
ISSUE and sale OF bonds provided for by the re-
act Of 1875.
THE SALE OF BONDS.
Fifty millions Of these bonds were sold, Yield
ng S5o. 633 295.T1, which was added to the re- |
serve fund OF gold then on hand. AS a result of
his operation this reserve, which had suffered
constant and large Withdrawals In the mean
lime, stood on the 9th day of March, 1894, at ! ]
he sum of sl07, 446S02. Its depletion was, how
yer, Immediately thereafter so accelerated {
hat on the 30th day of June, 1894 it had fallen 7
o $751; OPS, thus losing by Withdrawals more i
han $420OO,O00 in five months. and dropping c
lightly below its situation when the sale of t
shment. This depressed condition grew I
worse. and on the Gath day of November, 1894, | c
ur gold reserve had been reduced to S57, &c., @
IL. g
A SECOND BOND SALE.
1t became necessary to again strengthen it. | !
his was done by another sale of bonds =
to $50 700, from which there was 2
called 1885, 800 with which the fund was in !,
err, 1894. Again disappointment awaited the y
nxious hope for relief. There was not even a y
Ill in the exasperatlng Withdrawals of gold. q
n the contrary, they grew larger and more q
erslstent than ever between the 4th day Of G.
ecember, 1894, and early in February, 1895. o +
eriod of scarcely more than two months after y
le second reinforcement of our. gold o. 81
sserve by the sale OF bonds, it had :,
'st by such Withdrawals more than ~
o 100000, and had fallen to s4l,34O,ls1 u
early S45,0000Oo had been Withdrawn within .,
on. In anticipation Of Impending trouble, q 2,
I'd on the 28th day OF January. 1895. addressed ~
to the congress fully setting w !"
nth our difficulties and dangerous position at
Id earnestly recommending that authority be az
ven the secretary OF the treasury to issue e.
,nds bearing low rate of interest, payable NJ NJ
their terms In gold, for the purpose OF main In
lining q sufficient gold reserve. and also for -
q redemption and cancellation OF outstand- -
g United States notes and the treasury notes e s
sued for the purchase Of silver under the law M n
1890 This recommendation did not. how -.
er, meet with Legislative approval ~,
In February, 1896, therefore, the situation ~
Is exceedingly critical. With reserve pc a 5
ously low and refusal OF congressional aid, ~ ~.
erytbing indicated that the end of gold pay as'
ants by the government was imminent The o.
suits OF prior bond issues had been exceed ~ ~
Fly unsatisfactory and the large Withdrawals az
gold Immediately succeeding their public ~,
e In open market gave rise to reasonable ~, ~
spicion that large part OF the gold paid into Wv
, treasury upon such sales was promptly
wn out again by the presentation of United
ltes notes or treasury notes and found its Gu
v to the hands OF those who had only tenn the
rarily parted with it in the purchase OF tn,
ads. fol
THE THIRD BOND SALE. eo
a this emergency, ana IN we" o. ns sur be
rent 10 those upon whom the struggle for cir
ETY. was devolved, not only that our gold re- pul
We must for the third Time IN less tnan Jill anC
n months De restored oy ahoIner ISSUE au ing
, 0f hearing