Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1895-12-06

tney amounted TO 1881, 199ViS.
Immediately after that date and in jan
nary, 1876 q law was passed providing for
the resumption of specie payments, by
which the secretary OF the treasury was
was issued to national banks. to retire
United States notes equal in amount to 50
per cent OF such additional national bank
to $500, .0O0 This law further provided
that on and after the LIST day of January,
1879, the United States notes then cut
standing should be redeemed in coin. and
in order to provide and prepare for such re-
demption, the secretary Of the treasury
Plus REVENUES Of t the o sa a BUT to
Issue bonds of the United States and dis
pose OF them for coin. and to use the pro-
statute.
In May, 1878. and before the date thus APP
pointed for the redemption and retirement
forbidding their future cancellation ard
retirement: Some of them had, however.
been previously redeemed and cancelled
circulation, as permitted by the law of
1876. so that the amount outstanding al
the time of the passage of the act forbid
TIE law Of 1878 did not stop at distinct
prohibition, but contained, in addition, the
following express provision: And when
any OF said notes may be redeemed or be
received into the treasury under any law
from any source whatever and shall be-
long to the United States: they shall not be
shall be reissued and paid out again and
kept III circulation"
Creation of tho Reserve.
This was the condition of affairs on the
fixed upon four years before as the date
for entering upon the redemption and re-
tirement OF all these notes. and for which
The government was put in the anomalous
situation of owing to the holders of it's
notes, debts payable in gold on demand
which could neither he hty
Ing such notes in discharge of obligations
due the government, nor cancelled by actual
In gold It was forced to
acquittance. There had been issued and
sold 49,, $780, 900 of the bonds authorized by
which, together with other gold in the
treasury, created gold fund deemed suf-
tlcient to meet the demands which might
outstanding, United States notes. This
fund. together with such other gold as
might be, from time, to time in the treas
been since called our gold gold pSs' ana ana
$l00,O00,000 has been regarded as an ade-
qnate. amount to accomplish Its object
uary, 1879, to s11i, 800. and though there
after constantly fluctuating, It did not fall
below that sum until July, 1892. In April,
1893. for. the first time since it's establish
p,cnt, this reserve amounted to less than
o Siiy ,$so Containing '"-l uate on's W.T.
y, W,
had been passed directing larger govern
mental monthly purchases of silver than
had been required under previous laws, and
treasury notes of the United States should
be issued, payable on demand in gold or
silver coin. at the discretion of the secre-
clared in the act to be THE established pol
ley 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 1t was not deemed per-
Missile for the the secretary Of the treasury
ferred upon him by refusing to pay gold OH
these notes when demanded. because by
such discrimination In favor Of the gold
dollar the so-callcd parity of the two metals
would be destroyed and grave and danger
Gus consequences would be precipitated by
Affirming or accentuating the constantly
widening disparity between their actual
values under the existing ratio
Cause of Depletion of tho Reserve.
1t thus resulted that the treasury notes
issued In payment of silver purchases un-
der the law of 1880 were necessarily treated
as gold obligations, at the option of the
holder. These The notes on the 1st day of No
monthly purchase of silver was repealed
amounted to more than 55.Cod.oO6 The
notes Of this description now outstanding,
added to the United States notes still un.
diminished by redemption or cancellation.
constitute a volume of gold obligations
amounting to nearly s5oo,Coo.OO0. These OBJ
IL,
since we have had gold reserve. have
been used to deplete it: This reserve. as
has been stated. had fallen in April. 1898, to
ent, with very few and unmportant up
ward war movements y p steadily decreased ex-
ished by the sale Of bonds. epe''
Among the causes for this constant and
uniform shrlnkase in this fund may be
under the operation of the tariff law until
recently In force, which crippled our ex-
change Of commodities with foreign ma
| lions and necessitated to somc extent the
payment of our balances In gold: the un-
natural infusion Of silver into our currency
and the increasing agitation for it's free
and unlimited coinage. which iL have created 1L9,
| ity 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 securities sold
| abroad: and the high rate of foreign ex-
change, which induced the shipment of our
| gold to be drawn against, as a matter OF
| Speculation.
Bond Issues Neccssitated.
In consequence of these conditions, the
gold reserve on the ast day of February.
| more than Sl,000C0O during the preceding
nine months, or since April. 1898. Its re-
Punishment being necessary, and no other
| manner of accomplishing it being possible,
| resort was had to the issue and sale OF
bonds provided for by the redemption act
of 1875. Fifty millions Of these bonds were
| sold, yielding S5S,633. 295.71. which was add
ed to the reserve fund of gold then on hand
AS a result of this operation this reserve
which had suffered constant and large
9Th day of March. 1894, ut the sum of sl07,-
446S02. It's depletion was. however. i'm.
the h day Of June sss Il
to s64,S73,o25, thus losing by withdrawals
more than si2,oooooo in five. months, and
the sale of s5o,o6o, 900 in bonds vas effected
| for It's replenishmcnt.
This depressed condition grew worse
gold reserve s being reduced to 81 sos 7oi il
| became necessary to again strengthen It.
] This was done by another sale Of bonds
was realized s5S 53S. 500, with which the
| fund was increased to Sill IA, 02l on the 4tf
day of December, 1894.
Congress Refused to Act.
Again disappointment awaited the anxi.
Gus hope for relief. There was not even
| a lull In the exasperating Withdrawals OF
gold. On the contrary. they grew larger
| and more persistent than ever. Between
| the 4th day of December, 1894 and early ir
| February. 1885, period of scarcely more
| than two months after the second rein,
forcement Of our gold reserve by the sale
| Of bonds, it had lost by such withdrawal.
more than 500. 100000. and had fallen tc
sn.340,1S1. Nearly si3, 100000 had been with.
drawn within the month Immediately pre-.
| ceeding this situation. In anticipa ton OF
impending trouble, l had on the 2Sth da!
| of January. 1895. addressed a communicn
ton to the congress fully setting forth oul
difficulties and dangerous position. anG
| earnestly recommending that authority be
| given the secretary of the treasury to Is
| payable by their terms In gold, for the pur.
pose of maintaining sufficient gold re
| serve, and also for the redemption and
cancellation of outstanding United State.
| notes and the treasury notes issued fol
| the purchase of silver under the law OF
| 1890. This recommendation did not, how.
i ever. meet with legislative approval.
Another Emergency.
| In February, 1895, therefore. the situation
was exceedingly critical. With reserve
| perilously low and a refusal of congress
| sional aid, everything indicated that tho
| oft to w fbe rppy sY,