Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-12-04
A. d. WARD Agent, Augusta, Maine.

bonds Among the causes for this constant
and uniform shrinkage in this fund may be
mentioned the great falling off of exports
under the operation of the tariff law until
recently in force, which crippled our ex-
change of commodities with foreign M
lions and necessitated to some extent the
payment of our balances in gold; the un-
natural infusion of silver into our cur
rencv, and the increasing agitation for its
free and unlimited coinage. Fifty mil
lions of these bonds were sold, yielding
S53. 633, 295. II, which was ADDED to the
reserve fund of gold then on hand. AS n
result of this operation, this reserve, which
had suffered constant and large with
drawals in the meantime, stood on the
sixth d ay of March, 1894, at the sum Of
S1O7, 446, SO2 Its depletion was, however,
Immediately thereafter so accelerated that
on the 30th day of June, 1894, it had
fallen to $64, S73, C25 thus losing by with
drawals more than S42, 600, 600 in five
months and dropping slightly below its
situation when the sale of $40 600, 600 in
bonds was effected for its reploniShment
This depressed condition grew worse,
and on the gath day of NovemCr, 1895, our
gold reserve being reduced to S57 $50, 70l,
| it became necessary to again siren CITIZEN
it. This was done by another sale of
| bonds amounting to $50, 900, 600, from
which there was realized sos, 53S, 500 with
which the fund was increased to SILL
l42, 02l on the 4th day of December, 1894.
Again disappointment awaited the
anxious hope fer relief There was not
even lull in the exasperating with
drawals of gold. On the contrary they
grew larger and more persistent than
ever. Between the 4th day of December,
1894, and early in February, 1875, a
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 500, coo, 900,
and had fallen to S4l,3l0, lSl.
Nearly s43, 600 600 had been with
drawn within the month imme-
diately preceding the situation.
In anticipation of impending trouble,
had on the 29fh day Of January, 1895,
addressed communication TO the Con
gress fully setting forth our difficulties
and dangerous position, and earnestly
| recommending that authority be given
the secretary of treasury TO issue bonds
bearing a low rate of interest, payable by
| their terms i'll gold, for the purpose Of
maintaining sufficient gold reserve and
also for the redemption and cancellation
of outstanding United States notes and
the treasury notes for the purchase of
silver under the law of 1890 This recon-
mendaton did not. however, meet with
legislative approval.
Ia February 1895, therefore, the situG-
ton was exceedingly critical-with re
serve perilously low. and a refusal OF
| 81, 4
that the end of gold payments by the
government was imminent. The results
of prior bond issues had been exceedingly
unsatisfactory and the large withdra walls
of gold Immediately succeeding their pub
lie sale in open market gave rise to rea-
sonable suspicion that large part of the
gold paid into the treasury upon such
sales was promptly drawn out again by
the presentation of L. s. notes or treasury
notes and found its way to the hands tf
those who had only temporarily parted
with it in the purchase of bonds.
Ia this emergency, in view of its sur
rounding perplextiCs, it became entirely
apparent to those upon whom the strug-
gle for safety was devolved not only that
our gold reserve must, for the third time
in less than 13 months, he restored by
another issue and sale of bonds bearing
high rate of interest and badly suited TO
| the purpose, but that Il plan must be
| adopted for their disposition promising
better results than those realized on pre-
vious sales. An agreement was therefore
made with number of financicrs and
banks whereby it was stipulated that bonds
described in the resumption act of 1875,
payable in coin thirty years after their
date, bearing interest at the rate of 4
per cent per annum and amounting to
about $62, 000, 600 should be exchanged
for gold receivable by weight amounting
to little more than sos, 900, 600. This
gold was to be delivered in such install
ments as would complete it's delivery
within about six months from the date of
the contract and at least onc-h half of the
amount was to be furnished from abroad
lt was also agreed by those furnishing
the gold that during the continuance Of
the contract they would by every means
in their power protect the government
against gold Withdrawals The contract
also provided that II Congress would au-
thorize their issue, bonds payable by their
terms in gold and bearing interest at the
rate of 3 per cent per annum might
within ten days be substituted at par for
the per cent bonds described in the
agreement. On the day this contract was
made its terms were communicated to
congress by a special Executive message.
in which it was stated that over $40
900, 00G would be saved to the government
if gold bonds bearing per cent interest
were authorized to be substituted for
those mentioned in the contract
= The Congress having declined to grant
the necessary authority to secure this say
ing, the contract, unmodifled. was carried
out, resulting in gold reserve amounting
to s1O7, 5ll ,230, on the sth day of July,
1893. The performance Of the contract
not only restored the reserve but checked
for time the Withdrawals of gold and
brought on a period of restored confidence
and such peace and quiet in business cir
Giles as were of the greatest possible value