The evening times., 1895-12-03

Treasury notes Is ned fof he s purs,asc Ss of Of
snsasicn did ia nos n q soMeesf sS meet nee 2 siss
In February, 1895, therefore. the stu
| alton was exceedingly critical With n re-
serve periIously low add a fefdyai u iS Con-
he sna Of a aalea th
nicnt was Imminent. The results or pri,r
/ bond iss1cs had been exseenrig giy inSatis-
nea;ei1 aSfg aaa ,ne iarSs wiihra yas q god
! III open market gave rise ;u n rea soma BILE
Suspicion mat large part uf the gold paid
in.o Ine treasury upon such sales wis
promptly drawn ,'lt again by the prpsenta-
loii vi United States Hoi,.s q, treasury
n3.es t and and inind is way tetIc hands OF those
In the purchase OF bonds.
BONDS GIVEN FOR GOLD.
In this emergency and in view of It's
surrounding perplexities, it besauIe entirely
apparent 10 th,se upon wtGu tile struggle
for safety was deyuIved not cnly that oa r
gold reserve must, for the third time in iess
tilaD tnirteen months, De Restored by an
other issue and sale ,,r bonds 6earing Il
4 nisu rate oI interest AID D.suIs s,.ItesI
oo 70 ,ne purp.'se, but tiat 4 piah linst be
lnopted Tor their disposition promising
Deter results than those realized on pre-!
vious sales. An agreement was there
toIc inaue MIln a ndiiiDer ff ffnfntItrs and
pdnkers whereby II was stipulated that
Donds described In the resaiuIstf,ili act of
100, payaD.c Ill CON thirty years after
tielt uate. bearing Interest ut the rate or
per per tent per annani. and amounting Ia
anout s62,COO, 900. shduldDbe exchanged
ioI s'io, fe,eivaDie by weight, Gnount-
'nE 10 little nofe tnan Soo.GoO.GOO.
This gold was 10 be delivered IN such in
staiihenLs as would complete It's delivery
Witnib about SIX mont Lac from the dare OF the
cohtrac.' ana at least one-naiI or the amount.
was to Ike furnished from abroad H. Was
also agreed by those SIMPLIFYING this gold
nat during the continuance. OF the CONTRACT
,ney ,1t wouid Dy every nieans IN tUeir power
pIotect the government: against goi1 with
drawals. The contfacl a,sJ prol l.I.ri Iit,t
II congress would authorize their. iss,Ip.
pon1s payable by their terms IN gold and
bearing interest at the rate of 3 per cert
per aiinuni might within ten days he sui,stj-
tuted at par Tor the per Gent boti,is de-
scriped In tue agrcemeifl.
Oh the Gay tins contract was made fts
ternis were communicated 10 Congres, py a
sLHci1i executive message. in wuici,~i. pyf,n
stated that more than SIG 600 600 would
DE- saved TO the gOverEihent,in ~ eo,,t, f,,,,.,. .,
bearing per cent interest were :,Srthorize.s
contract. 'i '''S
-. The Congress having declined to grsnt 4
tne necessary authority TO secure this saw
ing' lhe contract, unmodifieti. !. was carried !
out; ~, resNitliis ~ a gold reserve amounting
70 Sio a,oi 80 On The eta day of, Jo,v.1
Icyo. 1he performance or tiis Contract
MOI only restored the reserye, but cueeL..tL /,
LOT Time Withdrawals of gold and
drought on d period oI. restcre.i copiilienee
anu huch peace AMI qiIier in business cir
cies as were OF the greatest possitle value j
10 every interest that affects Our neoni..
nave never had the siigh ghiest mis- giving cen.
ceInihg Tue wisdom or propriety OF tlis ar
raiigeInent and am quite willing 10 an
swer Tor my full share OF res ponsiuiIity for
d.s AZ pronio,ion. ! believed it ayerteu q dis.
lster. the Ifnninence OIL Which was. fortn@
hateiy. ~. not az the time generally understood
Dy our people. = : '''St
Though the contract mentioned STAYED
Ior TINE the tide of roH withslra val I
its good results c,,uld not be p.ruanrnt'
necent Withdrawals have reduced the r..
serve from Slot 81 .230 on the sth day of
July 1885, 10 81 g,33.s, 9S6 t.oW Inns, fr
viii remain large enough To- render its in
crease unnecessary Is ouIy matter " cr-trr,.
lecture. though quite large withdra walls
LOT !, sn,pihent in the hnDesisats- futarc are
predicted In well-informed quarters. About
Sl6.Ooo.OOO has been wjthdra n a dilrine.
the month of November.
BACK TO WHERE WEST aRTEI,.9 ~
The foregoing statement of events and
develops the fact that after
increasing our interest -bGaEinS buDde,i. in,
debteiness more than S162 900 ,OUG tp
save our gt,ld reserve we are. nearly cyAen. \
We started. having now in such reserve,
81 1883, 966. as against S65. s;38. AZ = in.
February. 1884, when the first bonds we're
issued. -.----...'st.s. Il
Though the amount nf gold drawn from
the Treasury appears to be very large az =,
gathered irom the facts and figures herein
presented. 1t actually was much larger con-
Siderable sums having been acquired by |
the Treasury within the several periods
stated without the issue nf bonds. ON TIN.
18th OF January. 1885, jt was repurtei nv
the Secretary of the Treasury that more \
than SlT2.Uu0.ooO of gold had been With |
Drawn for boarding or shipment during /
the year preceding: He now reports that
from January l, 1879. tn Iuly- 1 = $50.
a period of more than eleven years cnly !
! little over $2S.O0U.0uO was wtndra wH,z
md that between July a. 1890. the date
,f the passage Of the law rnr an increased
purchase of silver. and the l st day of De-
,ember. 1898. or within less than fiys. and
= half years. there was withdrawn Nearly |
S3t GOO. 900. making total of fnore than |
S4o3 100000 drawn from the Treasury
n gold since January !, 1879, the date
liked in 1879 FOR the retirement uf the /
Nearly S32T coo 600 OF the gold thus
yithdraw wn has been paid out on these
United stateshotes: and get every one OF the
S346 900 600 is still uncanceiled q nd ready
o do service In future gold deplctions.
More than S76 100000 in gold has.
lin ce their creation in 1890, been paid out
purchase or silver by the government, and I
-et the whole, amounting 10 81 80, 900 900,
kept little more than $4,000 00O I
when have been retired by exchanges for |
silver at the request OF the holders. remains
and prepa red TO join their older
nd more experienced allies IN future raids
pon the Treasury's gold reserve
In other words, the government has pa id i'm
old more than n;ne-tcnths OF it's United
tates notes, and still owes them all 1t
las paid in gold about one-half OF its notes
iyen Tor silver purchases without extin-
nshinG by such payment one dollar OF these
otes.
When. added to all this. we are reminded
hat to carry on this astounding financial
cheme, the government has incurred a |
onded Indebtedness OF $50 .50u. 600 in
stabhshing gold reserve. and Of S162.-
l 10, 100 in efforts to maintain il; that the
nnual interest charge on such bonded in
ebtedness is more than 81 COO 200: that
continuance in our present course'nlly y re- |
cit in further bond issues, and that we
ave suffered or are thres tened with ALI
his Tor the sake OF supplying gold for for
ign shipment or facilitating its hoa riding
home, a situation is exhibited which GER
iinly ought TO arrest attention and pro-
oke immediate legislative relief.
THE FINANCIAL REMEDY. n
am convinced the only thorough and
racticable remedy for our Troubles is
'und in the retirement and cancellation
our United States notes. commonly called
reenbacks, and the outstanding Treasury l.
otesissuedby the government in pa ymentof
liver purchases under the act or 1880 n-s-
l believe this could be quite readily ac-
onlplished by the exchange OF these notes
Or United States bonds OF small as well as
lrge denominations, bearing low rate q
interest. They should be lony-term bonds |
lus increasing their deSiraoiiity as in
and because their payment could
e well postponed 10 LeriCd lar removed
'on present financial burdens and per-
leXities, when with increased prosperity |
nd resources they would BE- more easily |
let.
To further insure the cancellation of |
iese notes and also provide way by which
old may be added To our currency in lieu
them, feature in tie plan shuuld be an
given to the Secretary OF the
reasury To dispose OF ,6e btlGs abroad Tor |
j.u II npt esSiiry To- complete The cent emIiat-
| redemption and cance!ia,i',n. lisrEilrtiug
i'm to use the proceeds of such bonds TO
Ike up and cancel any of the notes that
Iay be in tie Treasury or that may be re-
Vod a. rpfy m ar