Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1895-12-07
order TO provide and prepare for such re-

order Co provide and prepare for such re-
temption the secretary Of the treas Try was
authorized not only to any surplus rcve-
lues of the government but to issue bonds OF
the United States and dispose of them for
coin and to use the proceeds for
the purposes contemplated by the statute
In May. 1878, and before the date thus appoint
ed for the redemption and retirement of these
notes, another statue was passed forbidding
their further cancellation and retirement
Some of them had, however, been previously
redeemed and Cancelled upon the issue of addi-
tional national bank circulation, as permitted
by the law of 1877, so that the amount out
standing at the time OF the passage of the act
forbidding their further retirement was $780,,
Sl,016 The law of 1873 did not stop at dis
tinct prohibition, but coEtained, in addition,
the following provision: t'And when
my OF said notes may be redeemed or
be received into the treasury, under any
law, from any source whatever. and
shall belong to the United States they shall
not be retired. Cancelled, or destroyed, but they
shall be reissued and made out again and kept
in circulation This was the condition Of af-
fairs on the 1st day of January, 1879, which had
been fixed upon four years before as the date
for entering upon the redemption and retire.
ment of all these notes, and for which such
abundant means had been provided. The gov
eminent was put in the anomalous situation of
owing to the holders of these notes debts pay
able IN gold on demand. which could neither be
retired by receiving such notes in discharge OF
obligations due the government, nor cancelled
by actual payment in gold. 1t was forced to
redeem without redemption and to pay without
acquittance.
There has been issued and sold S95, 509, 900 of
the bonds authorized by the resumption act
of 1873, the proceeds of which, together with
the gold in the treasury, created gold
fund deemed sufficient to meet the demands
which NIGH be made upon it for the redemp-
ton Of the outstanding United States notes
This fund.- together with such other gold as
might be from time to time in the treasury
available for the same purpose, has been since
called our gold reserve and S10o,0Oo.0O0 has
been regarded as an adequate amount to ac-
complish its object This fund amounted on
the lSt day of January, 1879, to S114.190,136
and though thereafter constantly huctuatlng.
1t did not fall below that sum in July, 1892 In
April, 1858, for the first time since it's estab-
lishment this reserve amounted to less than
100000 900, containing at that date only So7,-
OF 1870. In the meantime and in July, 1890 an
act had been passed directing large govern
mental monthly purchases of silver than had
been required under previous laws and provid-
ing that in payment for silver treasury notes
of the United States should be issued payable
on demand in gold or silver coin at the discre-
ton of the secretary of the treasury, it was
however, declared in the act to be the eStab-
lished policy of the United States to maintain
the two metals on a parity with each
other upon the present legal ratio, or
such ratio as may be provided by law.
In view OF THIS declaration IL was not deemed
permissible for the secretary OF the treasury
to exercise the discretion in terms conferred
on him by refusing to pay gold on these notes
when demanded, because by such diScrimina-
tion in favor of the gold dollar. the So-called
parity Of the two metals would be destroyed
and grave and dangerous consequences would
be precipitated by affirming accentuating
the constantly widening disparity between
their actual value under the existing ratio
These obligations are the instruments which
ever since we have had a gold reserve, have
been used to deplete it.
This reserve as has been stated, had fallen
in April, 1898, to 1877, oil ,33) It has from that
time to the present, with very few and i'm
portant movements, steadily decreased, except
as it has been temporarily replenished by the
sale of bonds. Among the causes for this con-
slant and uniform shrtnkage in this fund may
be mentioned the falling of Of exports under
the operation of the tariff law until recently in
force, which crippled our exchange OF COM
moditieS with foreign nations and necessitated
to some extent the payment of our balances in
gold the unnatural infusion OF silver into our
currency and the increase in agitation
for its free and unlimited coinage
which have created 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 we'll as the return of our securities already
sold abroad and the high rate of foreign ex-
change, which induce the shipment of our gold
to be drawn against a matter OF Specula-
ton. In consequence of these conditions the
gold reserve on the 1st day of February, 1894,
was reduced to S65, AS, 377, having lost more
than S31.t 0)000 during the preceding nine
months, or since April, 1893. Its replenishment
being necessary and no other manner of &C
compEshing it being possible resort was
had to the issue and sale Of bonds pro-
vided for by the resumption act Of 1875.
Fifty millions of these bonds were sold, yield
ing s53,633, 295.71, which was added to the re-
serve fund of gold then on hand. AS a result
of this operation this reserve, which had Suf-
fered constant and large Withdrawals in the
meantime, stood on the 9th day of March, 1894,
art the sum of $107, 44S813. It's depletion was,
however Immediately thereafter so accelerated
that on the 3Jth dav of June 1884, it had fallen
to S64, 873, G25, thus losing by Withdrawals more
than S42 10000 in five months and dropping
slightly below this situation when the sale OF
$50 900 900 in bonds was effected for its redemp
ton. This depressed condition grew worse,
and on the 2Oth day OF November, 1894,
our gold reserve was drained to 81, .0l.
1t became neces ;ary to again strengthen it.
This was done by another sale of bonds
amounting to S50,0)O,000, from which there was
realized S5S, 538, 800 with which the fund was in
creased to gill ,O12 ,021 on the lth day of De-
cember, 1884, Again disappointment awaited
the anxious hope for relief There not
even a lull in the exaSperating Withdrawals of
gold On the contrary, they grew larger and
more persistent than ever. Between the 18th
1895, a 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 $50 900, 900, and
had fallen to 81 03 lS. Nearly S43 900 ,O0J had
been withdrawn within the month Immediately
preceding this situation.
In this emergency, and in view of its sur
rounding perplexity. it became entirely appar-
emit to those upon whom 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 rate of interest and badly
suited to their purpose. but that a plan must
be adopted for their disposition promising bet
ter results than realized on the previous sales.
An agreement. therefore, was made with a
number of fnancierS and bankers whereby
it was stipulated that bonds de-
scribed in the resumption act Of 1873
payable in coin thirty years after their date,
bearing interest at the rate of per cent per
annum and amounting to about SOP .OO0,OO0,
should be exchanged for gold, receivab BILE by
weight Amounting to a little more than 3d.