The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1895-12-07

Another Emergency.
In February. 1896 therefore. the situation
oM ana asu.s u
fionai aid. everything indicated that tho
end OF gold payments by the governmen!
issues had been exceedingly unsatlsfac-
tory and the large Withdrawals OF gold
immediately succeeding their public sale
paid into mt the the treasury upon such sales
mss ntS o. un,sd Ya states notes
parsa q w R0is mh ths saS oas
In this emergency. and In view OF rs SUR
rounding .perplexities Il became entirely
for safety was dsvolved not only that our
cold reserve must. for the third time Ia loss
sn y months b pc css,ersd ~ nnso5 rns
OF interest and badly suited 10 the purpose.
but that plan must be adopted for their
disposition promising better results than
those realized on previous sales.
The Syndicate Agreement
An agreement was therefore made with
a number OF finnnciers and bankers where
IN the resnmption act OF ISIS payable Ia
coin 30 years after their date. bearing In
tercst at the rate OF four per cent. per an
should p 30 sxcRansed for gold. rscsivsbie
by weight. amounting 10 q little more than
So. 900. 900.
H.
On tho day this contract was made It's
terms were communicated 10 congress by
a special executive message, In which Il
was stated that more than tl6O00.O0O would
be saved 10 the government II gold bearins
bonds bearing three per cent interest We're
authorized 70 be substituted for those men
toned In tho contract. The congress hav-
INK declined 20 grant the necessary author
ity TO secure this saving. the contract. I'M
soid reserve amounting 70 so7 81 20 on "a tbs
Sth day OF July, 1895. The performance OF
this contract not only restored the reserve,
but checked for a time the Withdrawals OF
gold and brought on period OF restored
confidence and such peace and quiet In
business circles as were or the greatest pos
our people
Good Results Not Permanent
Though the contract mentioned stayed
good results could not be permanent. RE-
cent Withdrawals have rduced the reserve
from sig1, ,2so on the Sth day OF July.
large enough to render It's Increase unnec-
essary rs only matter OF conjecture, though
quite large Withdrawals for ship y, p. 1t, n
informed quarters. About xlG. 90. 900 has
been Withdrawn during the month OF Mo-
situation stin Critical
The foregoing statement OF events and
conditions develops the fact that after in-
de i ST. more ore than SIZE 90, 900 TO save
started, having now IN such reserve W.
1884, when the first bonds were issued.
ON the 18th Of January. 1895. IL was re-
Ported by ths Y G o. sas baS sse
Withdrawn for boarding or shipment dur
ing the year preceding: lie now reports
a period of moro than il years. only a. little
over IS, 600 was withdrawn. and that
between July II. 1890. the date q the pas-
OF silver, and the LIST day OF December. 1896,
or within less than o years. there was
OF '' more than yi6s' CO., 900 drawn from the
treasury IN gold since January 1. 1879, the
date fixed In 1875 for the rotirement OF the
the gold thus Withdrawn has been paid out
Oh these United states notes; and yet every
one Of the ss4G. 600 700 e stu nneaneslea and
lions. More than 900 IN gold has
since their creation In 1870 been paid out
from the treasury upon the notes given on
the purchase OF silver by the govornment:
and yet the whole, AMOUNTING 20 No5. 700. Co.
except little more than n6ooo,0vo which
ut the request OF the holders. remalns OUT
rtandins and prepared e join their olds DIR
upon tho treasury's gold reserve.
Nots~ should Ic Retired.
am convinced the only thorough and
practicable remedy for our troubles II
found In the retirement and canceilatl9pn
treasury notes issued by the government
~ ESQ., believe sysT YRS sosd psSs an
these notes for United states bonds o.
bearing a low rate OF interest. They should
] ha ionR-term bonds. thus Increasing their
a. eond be- ws na te
"a period far removed from present finan-
cial burdens and perpicxitlos. when with
increased prosperity and resources they
would be more easily met
Would Restore Confidence.
The Increase OF our bonded debt In
voived In this plan would be amply COM
penrated by renewed activity and enter.
confidence at home. the relnstated faith
| I'm our monetary strength abroad. and the
ha, @oua 20 foow ho nsrss y
| goid-demand obligations now affiicting US.
now Co fiii tho Void.
| Tho currency Withdrawn py the retire
/ ment OF the United States notes and treas
ury notes, amounting 20 probably less
than tS6. 10000. might be supplied by such
gold as would be used on their retirement
ey AZ ha" s ,he %
capital OF those now I'm existence amounts
TO more te54,oo 600, their outstanding cir
| 10 only about $50. 100000 They are author
/ lied TO issue notes amounting 10 30 per
cent OF the bonds deposited TO secure their
| circulation, but In no event beyond the
amount OF their capital stock. and they
are obliged 20 pay one per cent. tax on the
| circulation they issue.
/ think they should be allowed 10 ISSUE
| circulation equal TO the par value OF the
bonds they deposit 20 secure n. and that
the tax on their circulation should be re-
| duced TO onc-fourtb or one per cent, which
would undoubtedly meet all the expense
the government incurs on their account.
/ In addition, they should be allowed to sub
/ rtitufo or deposit I'm lieu OF the bonds now
/ required a. security for their circulation
| those which would be issued for the pur-
pose OF retiring the United States notes
and treasury notes. The banks already. cx-
listing, III they desired 20 avail themselves
| OF the provisions OF law thus modified
| could Issue circulation In addition 10 that
already outstanding. amounting TO tf7s,.
| 100000. which would nearly or quite equal
tho currency proposed 10 be cancelled
Necessity May Not Arise.
But there might not De the necessity for
| such an addition 10 the currency by new
| issues OF bank circulation a. az first glance
| ~ indicated. II We should DO relieved from
| maintaining gold reserve under condl.
/ lions that constitute n tho barometer ~
| our rolvoncy. and m our treasury should
no longer be the foolish purveyor OF gold
| for nations abroad or for speculation and
boarding by our citizens at home, nhould
eNpect TO see gold rcnuuo it's mn turnl and