Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-12-03
Of which was, fortunately, not at the time

for a time the tide of gold withdrawal its
good results could not be permanent. Re-
cent Withdrawals have reduced the reserve
from s1O7, 571 go on the sth day of July,
1885, to SIS, 333, 966. How long it will remain
large enough to render its increase unDec-
essary is only matter of conjecture, though
quite large Withdrawals for shipment In tine
immediate future are predicted in WELL
informed quarters About s16.GOO.OOO has
been withdrawn during the month Of No
vember
Tie foregoing statement Of events and
conditions develops the fact that after in
creasing our Understanding bonded in
debtedness mere than $162DOO,OO to save
our gold reserve we nearly where
started. having now in such reserve $I9,
333, 966, as against S65. 4::S,3i7 in February,
1884, when the first bonds were issued.
Though the amount CT gold drawn from
the Treasury appears to be very large, as
gathered from the facts and figures herein
presented. 1t actually was much larger,
considerable sums having been acquired by
the Treasury within the several periods
stated without the issue of bonds. On the
2Sth of January, 1895. it was reported by
the Secretary of the Treasury that more
than Sl72,OoO,OOO of gold had been with
drawn for boarding or shipment during the
year preceding. He now reports that from
January l, lS70 to July IA, 1890. a period
of more than eleven years, only little
over $2S,OOO,OOO was withdrawn. aid that
between July IA, 1892 the date oe the pas
sage of the law for an increased purchase
Of silver, and the LIST day of december,
1875, or within less than five and a hall
years, there was Withdrawn nearly $780,
C0O,GO0 making total of more than S4O3,-
OtO.OoO drawn from The. Treasury in gold
sihce January !, 1879, the date fixed in 1879
for the retirement of the United States
notes.
Nearly Ss27,OOO,OOO of the gold thus with
drawn has been paid out on these United
States notes; and yet every one of the $34c.-
GOO.OOO is still uncancelled and ready 10 do
service In future gold iepletions
More than sI6.UOO,OoO in gold has, since
their creation In 1880, been paid ont from
the Treasury upon the notes given on the
purchase of silver by the Government; and
yet the whole, amounting to $l55,OOO,OOO,
except little more than $1GOOO,UrU, which
have been retired by exchanges for silve err
at the request OF the holders, remains out
standing and prepared to join their older
and more experienced allies in future raids
upon the Treasurys gold reserve.
In other words. the Government has paid
in gold more than nine-tenths of Its United
IL. I
has paid in gold about one-half of its notes
given for silver purchases without ex-
tinguishing by such payment one dollar of
these notes.
When added to all this we are reminded
that to carry on this astounding financial
scheme the Government has incurred a
bonded Indebtedness of s95, 100000 in estab-
fishing gold reserve, and of s162,315, 400 IN
efforts to maintain it; that the annual in
terest charge on such bonded Indebtedness
Is more than 900; that continuance
In our present course may result in further
bond issues, and that We have suffered or
are threatened with all this for the sake of
supplying gold for foreign shipment IA
cilitatlng its boarding at home, a situation
Is exhibited which certainly ought to ar
rest attention and provoke immediate legis-
latve relief.
The Retirement of the Greenbacks.
1 am convinced the only thorough and
practicable remedy for our troubles is
found in the retirement and cancellation of
our United States notes, commonly called
greenbacks. and the outstanding Treasury
notes issued by the Government in payment
of silver purchases under the act of 1890.
1 believe this could be quite readily ac-
complished by the exchange of these notes
for United States bonds of small as well as
large denominations, bearing a low rate of
interest They should be long-term bonds.
thus increasing their desirability as in
vestments. and because their payment could
be well postponed to period far removed
from present financial burdens and per-
plexities, when with increased prosperity
and resources they would be more easily
met.
To further insure the cancellation of these
notes and also provide way by which gold
may be added to our currency in lieu of
them a feature in the plan should be
authority given to the Secretary of the
Treasury to dispose of the bonds abroad
for gold If necessary to complete the con-
templated redemption and cancellation, per-
hitting him to use the proceeds of such
bonds to take up and cancel any of the
notes that may be in the Treasury or that
may be received by the Government on any
account.
The increase of our bonded debt involved
In this plan would be amply compensated
by renewed activity and enterprise in all
business circles, the restored confidence at
home. the reinstated faith in our monetary
strength abroad, and the stimulation of
every interest and industry that would fol-
low the cancellation of the gold-demand
obligations now affecting In any event
the bonds proposed would stand for the ex-
tinSuishment of troublesome indebted
Tess, while in the path We now follow there
turks the menace of unending bonds, with
our Indebtedness still undischarged and ag-
gravated in every feature. The obligations
necessary to fund this Indebtedness would
not equal in amount those from which we
have been relieved since 1884 by anticipa-
ton and payment, beyond the requirements
of the sinking fund, out of our surplus
revenues.
The currency withdrawn by the retire
ment of the United States notes and Treas
ury notes, amounting to probably less than
SiSGOOO,O0O might be supplied by such gold
as would be used on their retirement or by
al increase in the circulation of our ma
tional banks. Though tie aggregate capt.
tai Of those now in existence amounts to
more than S6G4OOO.OOO, their outstanding
circulation based on bond security amounts
to only about s190,OOO,OOO. They are author
lied to issue nc ties amounting to ninety per
cent of the bonds deposited to secure their
In NV Ht