Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1895-12-04

SOC, 0OO,0 600 was shipped, leaving the
large balance Of such Withdrawals 10
BE accounted for
BY DOMESTIC EOARDINGS.
Tnasmuch as the withdrawal Of our
gold has resulted largely from fright,
there is nothing apparent that will
prevent its continuance or recurrence,
with its natural consequences, except
such a change in our financial methods
as will reassure the frightened and
make the desire for gold less intense.
1t is not clear how an increase in rev.
cnue, unless 1t be in gold, can satisfy
those whose only anxiety is to gain
gold from the government store. 1t
cannot, therefore, be safe to rely upon
increased revenues as cure for our
present troubles. Ii is possible that
the suggestion OF increased revenue as
a remedy for the difficulties we are
considering may have originated in an
intimation or distinct allegation that
the bonds which have been issued os-
tensibly to replenish our gold reserve,
were really issued to supply insufficient
revenue. Nothing can be further from
the truth. Bonds were issued to obtain
sold for the maintenance Of our ma
tional credit. AS has been shown, the
gold thus obtained has been drawn
again from the treasury upon United
States notes and treasury notes. This
operation would have been promptly
prevented If possible; but, these notes
having thus been passed to the treas
ury, they became the money OF the
government. like any other ordinary
government funds, and there was moth
ing to do but to use them in paying
government expenses when needed.
At no time when bonds have been
issued have there been any cOnsidera-
ton Of the question of paying the ex-
penses of government with their pro-
ceeds. There was no necessity TO con-
slider that question. In February, 1894,
when the first issUe Of bonds was made,
our surplus amounted TO over $lS7 ,OOO,-
600. In November, when the second
issue was made, it amounted to more
than $40 .000,0 900, and in February, 1895,
when bonds for The third time were
issued, such surplus amounted to more
than S100.000,000. 1t now amounts to
SIS, 07&,420.30.
Besides ali this, the Secretary Of the
treasury had no authority whatever to
issue bonds to increase the ordinary
revenues or pay current expenses. l
cannot but think there has been
SOME CONFUSION or IDEAS
regarding the efforts of the issue Of
bonds and the results of the withdrawal
Of gold II was The latter process and
not the former that. by substituting
in the treasury United States notes and
treasury notes for gold increased by
their amount the money which was in
the first instance subject to ordinary
government expenditures.
Although the law. compelling an in
creased purchase Of silver by the gov
eminent was passed on the 14th day of
July, 1890. Withdrawals OF gold from
the treasury upon the notes given IN
payment or such purchases did not be-
gin until October. 1891. Immediately
following that date, the Withdrawals
upon both these notes and United
States notes increased very largely,
and have continued to such an extent
that since the passage of that law
there has been more than thirteen
times as much gold taken out Of the
treasury upon United States notes and
treasury notes issued for silver pur-
chases as was thus withdrawn during
the eleven and a hall years immedi-
ately prior thereto. and after the LIST
day Of January. 1879. when specie pay
ments were resumed.