Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1895-12-07

This reserte. as has been stated had fallen
In April. i6DS to ee70ll $50. 1t has from that
portant upfard movements steadily de-
creased. except as 1t has been temporarily re- |
plonisbed blythe sale OF bonds. Among the /
causes for tlAs constant and uniform shrink |
Ing In this fnd mny bc mentioned the great !
falling on oferports under the operation OF |
the tarin Law until recently In force, which |
crippled our exchange Of commodities with |
forign nations and necessitated to some extent |
the unnatural infusion OF silver into |
our currency, and the increase in agita-
tion for It's rec and unlimited coinage.
which have creaed apprehension as to our dis |
position or ability to continue gold payments. |
the consequent boarding Of gold at home and
the stoppage OF Investments Of foreign capital |
as well as the return OF our securities already
sold abroad. snd the high rate Of foreign ex-
gold to be drawp against, as matter Of .pecu-
lation.
DEPLrnoN OF THE REVENUE
In consequence OF these conditions the gold
ss % s having oss mose @ tsas
s9i 200 900 during the preceding nine months,
or since April, 1865 It's replenishment being
necessary, and no other manner Of accomplish
issue and sait oi bonds provided for by the re-
sumption act ofiS76
yGs SALE OF BONDS.
Fifty millie sol these bonds were sold. yield
Ing Gs, ,6s3 ~ which was added to the re-
serve funa'3 81 gnId then on hand. As q result Of
this operation this reserve, which had suffered
constant and large Withdrawals In the mean
time, stood, on the 9th day Of March, 1894, at
the sum OF sIo7 ,4ies0,. It's depletion was, how
ever, Immediately thereafter so accelerated
that, on the 8Oth day Of June, 1904 II had fallen
TO VOL, ,s73025, thus losing by Withdrawals more
than A2,OO000 In FIVE months, and dropping
slightly below Its situation when the sale Of
$0,000,J00 IN bonds was effected for it's repen-
dpprnSSnd
worse. and on the 21th day OF November, 1894,
our gold reserve had been reduced to &67, Co.,
Oil.
A SECOND BOND SALE.
II became necessary TO again strengthen II.
This was done by another sale OF bonds
amounting to $50 600, ,0OO, from which there was
realized s5S,5SS, 00 with which the fund was in
creased to $iil,i42,02l ON the 4th day of Decem-
Der, lssl Again disappointment awaited the
anxious hope for relief. There was not even u
lull In the exasperatlng Withdrawals OF gold
On he contrary, they grew larger and more
persistent than ever. Between the 4th day Of
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
f9,OOOOO, and had fallen to CAL ,3i0, 1871. |
Nearly S45,O0OOO) had been withdrawn within
the month Immediately preceding this situa-
tion. In anticipation Of impending trouble, /
had on the 2sth day OF January. 1890, addressed
forth our difficulties and dangerous position,
and earnestly recommending that authority be
given the secretary OF the treasury to issue
bonds bearing low rate OF interest, payable
by their terms in gold, for the purpose OF main
tanning sufficient gold reserve, and also for
the redemption and cancellation Of outstand-
ing United States notes and the treasury notes
issued for the purchase OF silver under the law
OF 1870. This recommendation did not. how
ever meet with legislative approval.
In February, 1895, therefore, the situation
was exceedingly critical. With reserve Pc
rilously low and refusal OF congressional aid,
everything indicated that the end Of gold pay
menls by the government was imminent. The
results OF prior bond issues had been exceed
ingly unsatisfactory and the large Withdrawals
OF gold Immediately succeeding their public
sale In open market gave rise 10 % reasonable
suspicion that large part of the gold paid into
the treasury upon such sales was promptly
drawn out again BY the presentation OF United
States notes or treasury notes and found its
way TO the hands OF those who had only tenn
porariiy parted with 1t in the purchase of
bonds
SHE THIRD BOND SALE.
In this emergency and In view OF its sur
rounding perplcxitics, 1t became entirely ap-
parent to those upon whom the struggle for
safety was dcvolved. not only that our gold re-
serve must for the third time in less than thir-
teen months be restored by another issue and
sale OF bonds bearing n high rate Of interest
and badly suited to the purpose, but that
plan must be adopted for their disposition, |
promising better results than those realized on
previous sales. An agreement was therefore
made with number Of hnanciers and bankers
whereby 1t was stipulated that bonds de-
scribed In the resumption act of 1879,
payable In coin thirty years after their date,
bearing interest ut the rate of per cent. per
annum, and amounting to about s62 900,
should be exchanged for gold, recoverable by
weight amounting to llttlc more than sG5,-
QO0000.
THE SYNDICATE AGREEMENT.
This gold was to be delivered In such INSTALL
ments as would complete It's delivery within
six months from the date OF the contract and
at least one-half of the amount was to be fur
nishcd from abroad. 1t was also agreed by
those supplying this gold that during the con-
tinuance Of the contract they would by every
means in their power protect the government
against gold Withdrawals.
The contract also provided II congress would
authorize the issue OF bonds, payable by their
terms in gold ind bearing interest at the rate
of per cent per annum, might within ten
days he substituted at par for the 4-per-cent.
bonds described in the agreement On the day
this contract vas made its terms were COM
municated to congress by special executive
message. in which 1t was stated that more than
sixteen millions Of dollars would be saved to
the government II gold bonds, bearing per
cent. were authorized TO be substituted for
those mentioned in the contract
The congress having declined to grant the
necessary authority to secure this saving. the
contract, unmOdifed, was tarritd out resulting
10 gold reserve amounting to si07 ,57l go on
the Sth day Of july 1895 The performance Of
this contract not only restored the reserve but
checked for time the Withdrawals OF gold
and brought or period OF restored confidence
and such peace and quiet In business circles as
were OF the greatest possible value to every
interest that Affects our people, have never
had the slightest misgiving concerning the
wisdom or propriety OF this arrangement, and
am quite willing to answer for my full share Of
responsibility for Its promotion.
ThOuu h the contract mentioned Stnvad for n
time the tide d gold withdrawal, its good re-
suits could not be permanent. Recent with
drawals have reduced tho reserves from sl07,-
5.i 230 on the 9th day OF July, 1897, to $79 $685.
966. How long 1t will remain large enough to
render its increase unnecessary is only matter
OF conjecture, though quite large Withdrawals
for shipment In the immediate future arc pre-
d1cted In well-informed quarters. About $l6.-
O00OOl has been withdrawn during the month
OF November
ARE NEARLY WHERE We STARTED.
The foregoing statements of events and con-
ditons devdlopes the fact that after increasing
our intcrcst-bearing bonded Indebtedness more
than Sl6.OO0!0O to save our gold reserve, we
are nearly whore we started, having now In
such reserve s97. .S33 $685. against &5 4is 377 In
February, 1904, when the first bonds were Is
the treasury appears to be very large, as gath
cred from the facts and figures herein present,
1t actually was much larger, considerable sums
having been acquired by the treasury within
the several periods stated without the issue Of
bonds.
THE WITHDRAWALS OF GOLD
On the 18th Of January, 1895, it was reported
by the secretary Of the treasury that more
than Sl7s ,000,009 OF gold had been Withdrawn
for boarding or shipment during the year pre-
ceding. He now reports that from January l,
1872, to July II, 1890, q period OF more than
eleven years, only little over s2s,OOO,OO0 was
withdrawn, and that between July II. 1890, the
date OF the passage OF tho law for an Increased
purchase OF silver, and the LIST day OF Decem-
ber, 1898, or within less than Ave and half
years, there was withdrawn nearly 1876 ,000, 900.
making the total OF more than ei03. 100000
drawn from the treasury in gold since january
l. 1870, the date fixed in 1879 for the retirement
Of the United States notes.
THOSE GoLD-RAIDING NOTES.
Nearly .327000.000 OF the gold thus with
drawn hes been paid out on these United
States notes, and yet every one OF the $4,000
900 Is still uncancelled and ready to do service
In future gold depletions. More than &76,-
0,0.o0o in gold has, sfnce their creation in 1890
been paid out from tho treasury upon the notes
given on the purchase Of silver by the govern
ment: and yot the whole, amounting to eih5,-
000.000, except little more than Si60c0.000
which have been retired by exchanges for sill
yer at the request Of the holders, remains
outstanding and prepared to Join their
older and more experienced allies In
fnture raids upon the treasurys gold reserve.
In 9th " worus. tho government has paid In
god more than ntne-tenths OF the United
States notes. ind still owes them oil. 1t has
paid in gold about onc-half Of its notes given
for silver purchases without extinguishing bv
such payment one dollar OF these notes. When
added to oil this we are reminded that to carry
on this astounding financial scheme the gov
ernment hns incurred o bonded Indebtedness
Of eos 700 goo IN establishing gold eseIve, and
OF $l6s,Sl5400 In Efforts TO maintain II,
that an annual tpterest charga ,u such