People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1895-12-05


ciers and bankers whereby it was stip.
ulated that bonds described in the re-
sumption act Of 1873, payable in coin
thirty days after their date bearing in.
terest at the rate Of 4 per cent per an.
mum and amounting to about SCI. 600 90,
should be exchanged for gold receivable
by weight amounting to a little more
than $65,OOO,OOO This gold was to D.
delivered in such installments as would
complete its delivery within about six
months from the date Of the contract
and at least One-half of the amount was
to be furnished from abroad. Ii was
also agreed by those supplying this gold
that during the continuance Of the con.
tract they would by every means in
their power protect the government
against gold Withdrawals.
WHAT CONTRACT PROVIDED.
The contract also provided if congress
would authorize the issue Of bonds pay
able by their terms in gold and bearing
interest at the rate of 3 per cent per an
mum might within ten days be substi-
tuted at par for the per cent bonds
. described in the agreement. On the
Gay this contract was made its terms
were communicated to congress by spec
ial executive message in which it was
stated that more than $4,000 900 would
be saved to the government if gold
bonds bearing 3 per cent We're authoriz-
ed to be substituted for those mention
ed in the contract.
/ The congress having declined to gran.
the necessary authority to secure this
saving the contract unmodified was car
/ ried out resulting in gold reserve
amounting to $l1O,771, $50 on the Sth dav
OF July, 1888. The performance of this
/ contract not only restored the reserve
but checked for time the Withdrawals
OF gold and brought on a period Of re-
stored confidence, and such peace and
quiet in business circles were of the
greatest possible value to every inter
est that effects our people. I have
never had the slightest misgiving con-
corning the wisdom or propriety of this
arrangement and am quite willing to
answer for my full share Of responsible
iity for its promotion.
1T AVERTED DISASTER.
l believe it averted a disaster the i'm
minence of which was fortunately not
at this time generally understood by our
people. Though the contract mention
ed stayed, for a time, the tide of gold
Withdrawals have reduced the reserve
from $lO757l, 23O, on the 9Th day of July
1893 to SI9,333, 500. How long it will re-
main large enough to render its in
crease unnecessary is only a matter Of
conjecture, though quite large with
drawals for shipment in the immediate
future are predicted in well informed
quarters. About $16,OOO,OOO has been
Withdrawn during the month Of No
vember
The foreign statement Of events and
conditions develop the fact that after
/ increasing our Understanding bond
ed Indebtedness more than 1852, 600 900
to save our gold reserve, We are nearly
where We started, having now i'm such
reserve $79,S5S, $3.50, against S65, 393,377 in
FEBRUARY, 1894, when the first bonds
were issued. Though the amount of
gold drawn from the treasury appears
to be very large as gathered from the
Facts and figures herein presented. it
actually was much larger. considerable
sums having been acquired by the
/ treasury within the several periods
stated without the issue of bonds.
On the 18th Of January, 1895. it was
reported by the secretary of the treas
ury that more than $l72,OOO.OOO of gold
had been withdrawn for boarding or
shipment during the year proceeding.
He now reports that January 1st. 1874,
to July "A, 1890, a period Of more than
ten years only q little over $2S,OOO. OGO
was withdrawn and that between July
IA, 1890, The date of the passage Of the
law for an increased purchase of silver,
| and the first day of December, 1895, or
within less than five and a half years.
there was withdrawn nearly 1915, 900 900,
making The tot Stof more than $4O3, OOO,-
600 drpTp, frohCl the treasury in gold
States D ties. ~
NealV 1921, 100000 of the gold thus
Withdrawn has been paid out on these
United States notes and yet every one
of the $9l6,OOO,OOO is still uncancelled and
ready to do service i'm future gold de-
pletiOn. More than $S76, 100000 in gold
has since their creation i'm 1890 been
pald out from the treasury upon the
notes given this purchase of silver by
the government; and yet the whole
amounting to S155O00,O00 except q lit
tie more than $16.OOO,OOO which have
been retired by exchanges for silver at
the request Of the holders, claims out
stadinS and prepared to Join the older
and more experienced allies in future
raids upon the treasury's gold reserve.
AND STILL OWES IT.
In either words, the government has
paid in gold more than nine tenths of
ITS United States notes and still owes
them all. 1t has paid in gold about one
half of its notes given for silve- pur-
chases without extinguishing by such
payment one dollar Of these notes. and,
added to all this. We are reminded TO
carry on this astounding financial sys-
TEN the government has incurred a
bonded Indebtedness Of $95, 100000 in es-
tablishing 4 gold reserve. and of $l62,-
Sl5,4OO in efforts to maintain it. that an
annual interest charge of such bonded
indebtedness is more than Sl1, 600 900;
that a continuance in our present course
may result in further bond issues; and
that We have suffered or are threaten
ed with all this for the sake of supply
ing gold for foreign shipment or facil-
itating its boarding at home. A situa-
ton is exhibited which certainly ought
to arrest attention and provoke imme-
date legislative relief. l am convinced
the only thorough and practical Iem-
edy for our troubles is found in the re
tirement and cancellation Of our United
States notes, commonly called green
backs" and the Outstading treasury
notes issued by the government in pay
ment Of silver purchases under the ACT
Of 1890.
I believe this could be quite readily
accomplished by the change Of these
notes for United States bonds Of small
DIS wen as LdISe denomination, bearing
a low rate of interest. They should be
long term bonds thus increasing their
desirability as investments and because
their payment well-pOstponed to a per-
iod far removed from present financial
burdens and perplexities when increas-
ed prosperity and resources they would
be more easily met. To further insure
the cancellation Of these notes and also
provide way which gold may be added
60 our currency in lieu Of them, a fea-
ture in the plan should be an authority
given TO the secretary Of the treasury
to dispose of the bonds abroad for gold
If Unnecessary to complete the contemplate
ed redemption and cancellation, permit
ting him to use the proceeds of such
bonds to take up and cancel any Of
the notes that NAV he in tba ire sl,r,-