The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-12-04

into our currency and the increasing.
agitation for its free and unlimited
coinage. which have created appre-
hensbon as to our disposition or abilfty
to continue gold payments; the conse-
quent boarding of gold at home and
the stoppage of investments of foreign
capital. as well as the return OF our Sc
cursties already sold abroad; and the
high rate of foreign exchange. which
induced the shipment of our gold to be
drawn against, is a matter of specula-
tlon. 1888
In consequence of these conditions
the gold reserve on the first day OF
February. 1894, was reduced to $S5, 49,
377, having lost more than $31 .000, 900
during the preceding nine months, or
since April. 1898. It's replenishing be-
ing necessary, and no other manner OF
accomplishing 1t being possible. resort
was had to the issue and sale of bonds.
provided for by the resumption act of
1875. Fifty millions of these bonds
were sold, yielding $6S. 633, 295.71. which
was added TO the reserve fund of gold
then on hand. AS a result of this oper-
alton, this reserve which had suffered
constant and large Withdrawals in the
meantime, stood, on the 9Th day Of
March. 1894. at the sum of s107 ,446. 602.'
It's depletion was, however, Immediate
ly thereafter so accelerated that, on
the Both day of June, 1894. Ii had fallen
to 1913, OBS, thus losing by Withdraw
ais more than s42000,000 in five months.
and dropping slightly below its situa-.
ton when the sale of $4,000, 900 in,
bonds was effected for its replenish-,
ment. This condition grew worse and,
on the oath day of November, 1894, our
gold reserve being reduced to $57,669.-
701. 1t became necessary to again
strengthen 1t.
THE SECOND SALE.
This was done by another sale of
bonds amounting to $4,000. 900. from
which was realized $5S,53S, 500, with
which the fund was increased to $l11,-
421 ,021, On the 4th day of December,
1894. Again disappointment awaited
the anxious hope for relief. There was
not even a lul in the exasperating
Withdrawals of gold. On the contrary,
they grew larger and more persistent
than ever. between the 4th day of De-
cember, 1894, and early in February,
1895, period of scarcely more than
two months after the second reinforce
ment of our gold reserve by the sale OF
bonds, dt had lost by such Withdrawals
more than s69,000.000 and had fallen to
$41, $40, ISL. ESQ 4I.lAtsi
Nearly 81, 900, 900 had been withdrawn
within the month Immediately preced-
| ing this situation. In anticipation OF
Impending trouble. 1 had on the 2sth
day of January. 1895. addressed a COM
municat.on to the congress fully set
ting forth our difficulties and our--a1ss-
/ gerous position, and earnestly recon-
mending that authority be given, The,
! secretary of the treasury to ISSUE
| bonds bearing a low rate of Interest
| payable by their terms in gold, for the
purpose of maintaining a sufficient gold
! reserve and also for the redemption
| ard cancellation of outstanding United
| States notes and the treasury notes Is
sued for the purchase of silver under
! the law of 1890. This recommendation
~
approval. In February 1895, therefore,
| the situation was exceedingly Critical.
| With a reserve perilously low and a
refusal OF congressional aid everything
| Indicated that the end of gold pay
| ments by the government was immi-
nent. The results of prior bond issues
had been exceedingly satisfactory and
| the large Withdrawals of gold imme-
d.ately succeeding their public sale in
open market gave rise TO a reasona bic
suspicion that a large part of the gold
paid into the treas upon such sales
was promptly drawn out again by the
presentation of United States notes or
treasury notes and found its way into
the hands of those who had only tenn
po-arily parted with ii in the purchase
OF bonds. r5VIl-Ds
THE THIRD BOND ISSUE.
In this emergency and in view of its
surrounding perplexitles, ii became en-
the struggle for safety was devolved
not only that our gold reserve must.
for the third time in less than thirteen
months, be restored by another issue
and sale of bonds bearing a high rate
| of interest and badly suited to the pur-
pose. but that a plan must be adopted
FOR their disposition promising better
results than those realized on previous
sales. An agreement was tneye fqrf
made with number of hnancters and
Eankers whereby II was stipulated thai
bonds described in the resumption acl
OF 1875, payable in cOtn thirty yenrs af-
ter their date, bearing interest at the
rate of four per cent. per annum and
amounting to about SCI, 900. 900 should be
exchanged for gold receivable by
weight amounting to a little more thar
$65 0O0 900. This gold was to be deiY'
cred IN such installments as<swosa1d
complete its delivery within six month:
from the date of the contract, and a.
least one half of the amount was to be
furnished from abroad.
1t was also agreed by those supplying
this gold that during the continuance
OF the contract they would by every
means in their power protect the gov
eminent, against gold withdrawals
The contract also provided that, ~
congress would authorize their Issue
bonds payable by their terms in golt
and bearing interest at the rate o
.
| in ten days be substituted at par To-
the four per cent. bonds described II
the agreement. on the day this con
tract was made its terms were com
muntcated to congress by a special ex
ecutive message in which II was states
shat more than sixteen millions OF dol
lars would be saved 10 the govenmep
IL gold bonds bearing three per cent
interest were authorized to be .suhsti
tuted for those mentioned in the con
tract. The congress having declined q
grant the necessary authority to sc
cure this saving, the contract unmod
flied was carried out. resulting in Z
gold reserve amounting 10 s107 81. SO
|, on the SIN of July, 1895. The perform
ance of this contract not only restores
the reserve, but checked for a time tn
withdrawal OF gold and brought on
period Of restored confidence and sue.
|. peace and quiet in business circles a
were of the greatest possible accoun
IN every interest that effects our PEG
|, pie.
SATISFIED WITH 1T. ta