Eagle River Democrat. [volume] (Eagle River, Vilas County, Wis.) 1893-1896, 1895-12-09

AID, everything Indicated tndL the emu VI
gold payments by the government was imIlin-
ent The results of prior bond issues had
been exceedingly unsatisfactory and the large
Withdrawals of gold Immediately succeeding
their public sale in open market gave rise
to a reasonable suspicion that large part OF
the gold paid into the treasury upon sucn
sales was promptly drawn out gain by the pre-
sentation of United States notes or treasury
notes and found it's way to the hands OF those
who had only temporarily parted with 1t IN
the purchase of bonds.
In this emergency and in view OF It's sur
rounding perplexity, it became entirely ap-
parent tc those upon whom the struggle Tor
safety devolved not only that our gold
reserve must, for the third time in less than
thirteen months, be restored by another IS
and sale of bonds bearing hlgh rate
of interest and badly suited to the purpose,
but that a plan must be adopted for their
disposition promising better results than those
realized on previous sales. An agreement
was therefore made with number OF imam
ciers and bankers whereby it was stipulated
that bonds described in the resumption act
Of 1875 payable in coin thirty years after
their date, bearing interest at the rate OF
per cent. per and amounting to about
$62, 900, 0O0 should be exchanged for gold,
receivable by weight, amounting to little
delivered in such installments as would com
plete it's delivery about six months
r0m that the oneaf Of the the amount was
to be furnished from abroad. It was also
agreed by thase supplying this gold that DUR
ing the continuance OF the CONTRACT tney
the government against gold withdrawals.
The contract also provides that If Congress
would authorize their, issue, bonds payao re
by their terms in gold, and bearing interest
at the rate of per cent. per annum might
within ten days, be SUBSTITUTED at par Tor the
per cent. bonds described in the agree
ment.
On the day this contract was made its
terms were communicated to Congress by
special executive message IN in W Vnn II We" hs
saved to the government if gold bonds bear
ing per cent interest were authorized to
be substituted for those mentioned in the
contract Congress having declined to grant
the necessary authority to secure this SAVING,
the contract, unmodifed was carried OUT re-
suting in a gold reserve amounting to $lO7,-
ST. 230, on the 9Th day of July, 1895: Inc
performance of this contract not only re-
stored the reserve, but checked for Ilme
the Withdrawals of gold and brought on a
period Of restored confidence and such peace
and quiet in business circles as were OF the
greatest possible value to every interest that
affects our people. 1 have never had the
slightest misgiving concerning the wisdom or
propriety Of this arrangement and am quite
willing to answer for my full share OF re.
sponsibility for it's promotion. beheve ~
averted a disaster the imminence OF which
was, fortunately not at the time generally
understood by our people.
Though the contract mentioned stayed Tor
time the tide of gold withdrawal, it's good
results could not be permanent. RecenC
Withdrawals have reduced the reserve from
$107, 557 230 on the 9Th day of July, 1885, 10
$79 333, 966. How long it will remain large
enough to render it's increase unnecessary IS
only a matter of conjecture, though quite
large Withdrawals for shipment in the imme-
diate future predicted in well informed
quarters. About SIG, 900 900 has been with
drawn in the month of November.
Now just Where We Started.
The foregoing statement of events and con-
ditions develops the fact that after 1ncTeas-
ing our interest-bearing bonded Indebtedness
more than $162 900, 900 to save our gold. re-
we are nearly whe ere e we oss
$685. 4SS, BIT in February, 1884, when the first
bonds were issued
Though the amount OF gold drawn from the
treasury appears to be very large, as gain
cred from the facts and figures herein pre-
sented it actually was much larger, con-
siderable sums having been. acquired by the
treasury within the several periods stated,
without the issue of bonds On the 2Sth VI
January, 1895, it was reported by the secre-
tary of the treasury that more than Sl7z, 9oO,-
900 of gold had been withdrawn for boarding
or shipment during the year preceding. He
now reports that from Jan. l, 1879, to July
IA, 1880, period of more than eleven years,
only a little over SIS, 900 900 was withdrawn,
and that between July IA, 1890, the date OF
the passage of the law for an increased pur-
Der, 1895, or within less than five and q half
years, there was withdrawn nearly $375, OOO,-
900, making total of more than $403, 900 600
drawn from the treasury in gold since Jan.
/ 1872 the date fixed in 1875 for the retire
ment of the United States notes.
Nearly 1927, 600 of the gold thus with,
States notes, and yet everyone of the $685.
900 900 is still uncancelled and ready to 90
service in future gold depetions. More than
$76 100000 in gold has, since their creation in
1890, been paid out from the treasury upon
the notes given on the purchase of silver by
the government, and yet the whole, amount
ing to $155, 600 900, except a little more tnan
SIS 600 900 which has been retired by ex-
changes for silver at the request of the hold
ers, remains outstanding and prepared to join
their older and more experienced allies in
future raids upon the treasurys gold reserve.
In other 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 silver purchases without extingu1sh-
ing by such payment one dollar of these
notes. When added to all this we are re-
minded that to carry this astounding
financial scheme the government has incurred
a bonded Indebtedness of $955OO,OOO in es-
tablishing a gold reserve and of $162, 315, 400
in efforts to maintain it; that the annual
interest charge on such bonded Indebtedness
is more than $11,00O,OOO; that a continuance
in present course may result in further
bond issues, and that we have suffered or
are threatened with all this for the sake of
supplying gold for foreign shipment or IA
cilitating it's boarding at home, situation is
exhibited which certainly ought to arrest at
tention and provoke immediate legislative re-
lief.
Asks for Retirement OF Greenbaclxs.
am convinced the only thorough and prac-
teal remedy for our troubles is found in the
retirement and cancellation of our United
States notes, commonly called greenbacks,
and the outstanding treasury notes issued by
the government in payment of silver pur-
chases under the act of 1890. I believe this
could be quite readily accomplished by the
exchange of these notes for United States
bonds of small as we'll as large denomina-
ticns bearing a low rate Of interest. They
should be long term bonds, thus increasing
their desirability as investments, and because
their payment could be well postponed to
period far removed from present financial
burdens and perplexities, when with increas-
ed prosperity and resources they would be
more easily met.
To further insure the cancellation of these
notes and also provide a way by which gold
may be added to our currency in lieu of
them, a feature in the plan should be an
authority given to the secretary of the treas
ury to dispose: of bonds abroad for gold If
necessary to complete the contemplated re-
demption and cancellation, permitting him
to use the proceeds of such bonds to take
up and cancel any of the notes that may
be in the treasury or that may be received by
the government any account.
The increase of our bonded debt involved
in this plan would be amply compensated
by renewed activity and enterprise in all
business circles, the restored confidence at
home, the reinstated faith in our monetary
strength abroad and the stimulation of every
interest and industry that would follow the
cancellation of the gold demand obligations