Alma record. (Alma, Mich.) 1878-1928, 1895-12-13
THE MESSAGE.
Continued from Third page

mentioned the great falling off OF exports
under the operation OF the tarin law until
recently m force. which crippled our ex-
change of commodities with foreign ma
tons ana necessituted 10 some extent the
payment OF our balances IN gold; the up'
natural infusion OF silver into our currency
and the increasing agitation Tor It's ire
and unlimited coinage, when nave cfeatSu
apprehension as 10 our disposition or anil
fly TO continue gold payments. the cohSc-
quent boarding of gold al nome ahu me
stoppa &c of investments Of foreign capital,
rs we'll as the return OF our securities sohi
abroad: and the high rate Of foreign eA-
change, which induced the shipment OF our
gold 10 be drawn against, ~ hetlH Oh
speculation
-; Bond Issues Necessitated
In consequence OF these conditions, t le
gold reserve on the isI ga da$ 9 Of avhTuJi o,
more than S3l 100000 during the preceding
nine months, or since April leSf us re-
plenishment being necessary, ana no Othrr
manner of accomplishing IT being PosSlpiey
resort was had 10 the issue ana Sale oi
bonds provided for by the redemption u. act ilrd
of 1875 FIFTY millions of these pohas WY
sold yielding $5S G33, 29511, W iich was aud-
ed to the reserve fund of gold theh on hal9.
As a result of this operation this reserve,
which had suffered constant ana large
Withdrawals In the meantime stoou % go 67e
9Th day Of March, 1884, az the sum oil FlGl-
&6 SOP Its depletion was. however, I'M
medately thereafter so acceierat9ue t Wa,
on the Goth day OF June, 1894, 1t had tailrh
to $6is73,o25. thus losing by wlthdraWai53
more than $42,o00,O00 in I'VE months, anu
dropping slightly below its situation when
the sale Of $50. 600 900 in bonds was effected
II Tor It's replenishment. , .,....o
This depressed condition grew worse,
and on the oath day OF NoVemhCr iSS5; ou ~
gold reserve being reduced to SoAoey, 'ul' II
Tbis was done by another sale Of bonds
amounting 10 s50OOo.OOO for whlGh tiltre
was realized $S5$S 500 WITH oo when he me LtS
fund was increased 10 Nll,l4@,o%4 OH IHe 1'4'
day Of December, 1894.
Congress Refused to Act.
Again disappointment awaited the anxi-
Gus hope for relief ihere was not even
lull I'm the eXasperating Withdrawals OF
gold on the contrary. they grew larger
and more persistent than ever Between
the 4th day Of December. 1894 ana early In
February. 1875, a period OF scarcely more
than two months after the second rein
forcement of our gold reserve by the sale
OF bonds, ii had lost by such wlthdraWals
more than $50 100000, and had fallen TO
s41,3i0lS1. Nearly N3,OO0Oo0 had been with
drawn within the month Immediately pre-,
ceeding this situation; n ahtIclpd !i 4 Oh
impending trouble, ! had on the 18th day
of January, 1898. addressed a commuhlca-
tion TO the congress fully setting forth our
difficulties and dangerous position, ana
earnestly recommending thtt authority be
given the secretary OF the treasury 10 Is
sue bonds bearing d low rate OF interest
payable by their terms IN gold, Tor the pur-
pose Of maintaining a sufhCient gold re-
serve, and also for the redemption ana
cancellation of outstanding United states
notes and the treasury notes issued Tor
the purchase OF silver under the law OF
1890. This recommendation dId hot, now
ever, meet with legislative approval
Another Emergency
In February 1855 therefore the situation
was exceedingly critical With reserve
perilously low and a refusal OF coneleS-
sional aid everything indicated that the
end of gold payments 10y the government
was imminent. The results OF prior poIu
issues had been exceedingly uhSd llsldc-
tory and the large Withdrawals OF goid
Immediately succeeding their pubic sale
I'm open market gave rise 70 a reasonable
suspicion that large part of the g0ld
paid into the treasury upon sucn safes
was promptly drawn out AGAIN 10y the
presentation Of United states notes or
treasury notes and found its way 10 the
hands Of those who had only temporarily
parted with it in the purchase OF bonus.
In this emergency, and in view OF It's sur
rounding perplcXitieS, it became entirely
apparent TO those upon whom the siiussle
for safety was devolVed not only that our
cold reserve must, for the third time IA less
than l3 months, be restored by another
ISSUE and sale Of bonds bearing a hlsh rate
of interest and badly suited 10 the purpose
but that plan must be adopted loi tlclr
disposition promising better results thsn
those realized on previous sales
The Syndicate Agreement
An agreement was therefore made with
a number Of fnauciers and bankers where
by il was stipulated that bonds descTlpeu
in the resumption act of 1878 payable In
coin 80 years after their date, bearing In
terest at the rate Of fOu- per cent per am
mum, and amounting to about $G2V0O,yVo
should Ice exchanged for gold, recelNahle
by weight, amounting to niue more tba n
So 0O0, 600. This gold was 10 be delivered ~
such instruments as would complete us
delivery within about SIX months IRON the
date of the contract, and at least one-half
Of the amount was TO be furnlshed from
abroad. 1t was also agreed 10y those sup
plying this gold that during the contlhu-
ance of the contract they would ~ every
means I'm their power protect the gov
errment against gold Withdrawals The
contract also provided that II congress
would authorize their issue, bonds payable
by their terms in gold and bearing interest
at the rate of three per cent per annum
might within ten DAYS be substituted at
par for the four per cent. bonds described
In the agreement
Thinks Disaster Was Averted.
On the day this contract was made rs
terms were Communicated 10 congress by
q special executive M ssage, IN Wlllch u
was stated that more than SlGVV'QD WoulI
be saved to the government II gOld-b
bonds bearing three per cent. interest were
authorized TO be substituted Tor those men
toned in the contract The congress nav
ing declined to grant the necessary author
NY to secure this saving, the contract, uh
modified, was carried out, resulting IN
gold reserve amounting 70 $lOGSd 80 on TN
9Th day of July 1888. The performance O
this contract not only restored the reserve
but checked for time the Withdrawals o
gold and brought on a period of restored
confidence and such peace and quiet II
business circles as were or the greatest pos
sible value to every interest that alIeCt
our people. / have never had the SuBhteS
nsgiving concerning the wisdom or pro
priety OF this arrangement, ana am qull
Willing to answer for my fun share Of re
sponsibility for its promotion. believe !
aVerted a disaster, the ilHmlncnce OF WHlNl
was fortunately not at the time general
understood by our people.
Good Results Not Permanent.
Though the contract mentioned stage
for q time the tide OF gold withdrawal, II
good results could not be permanent. Re
cent Withdrawals have rduccd the rcScrV
from SlO7 81 230 on the Sth day or july
1895. to $50 1893, 900 How long 1t viii RENAL
large enough TO render its Increase unnec
essary is only matter of conjecture, thong
quite large Withdrawals for shipment D
the immediate future are predicted in well
informed quarters. About Slt,Wu,OO ma
been withdrawn during the month OF nc
vember. . .
situation Still Critical.
The foregoing statement Of events an
conditions develops the fact that after IN
creasing our intereSt-bearing bonded IN
debtedness more than $lG2 oO0,OO TO saw
our gold reserve, We are nearly where "
started having now in such reserve $40
333 966 as against tGj.43S3,1 in February
1894 when the first bonds were ISSUED
Though the amount Of gold drawn froI
the treasury appears TO he very large, q
gathered from the facts and figures herei
presented, IL actually was much large
considerable sums having been acquire
4. e 1. .ua...-l, a 10.