The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-04

It's free and unlimited coinage, winch 10 -
\ created Apprehension TO our dtsposition
| or ability To continue gold payments. the
| consequen. boarding OF gold nj nothc'
| and the stoppagc OF investments OF io'
| elgn capital, as well as the return OF our
securities already sold abroad. and the
| high rate or foreign exSrangc. which IN
| duccd the shipment OF our gold 10 DO
! drawn against, az a matter OF speculation.
In CCTssQuence or these conuAtlons the
! gold res erNc on the LIST day OF February.
1874. was reduced to So, 1881. having
lost more than <l.0oooo0 during the pre-
| ccding nine me nths, or since April. lssJ
| lis repleniShmcnt betng necessary, and
no other manner of accompii shinss Il be-
ing. possible resort was had To- the issue
and sale of bonds provided for by the re-
sumption act of 1915. Fifty millions or
/ these bonds were sold. yielding s5s.bs3.-
S0. Il. which was added TO the reserve
fund OF gold then on hand. As a result
OF this operation. this reserve. which had
suffered constant and large Withdrawals
In the meantime. stood on the sth day OF
March, 1884, at the sum OF Si0', 1890.
THE WITHDRAWALS.
Its depletion was. however. immedate-
! ly thereafter so accelerated that on the
/ 30th day OF June. iS9f. IL had fallen to
| s5i,S73025, thus losing by Withdrawals
more than 100000 In I've months. and
| the sale of S5OO0,OO0 In bonds Vas effected
| for it's replenishncnt.
This depressed condition grew worse.
and On the 2ith day OF November. 1874. our
/
IL became necessary TO again strengthen
| II. This was done by another sale OF
bonds amounting TO ssoooo.0o0 from which
! there was realized $5S.53s,5O0. with which
! the fund was increased 10 Slll,lA2,UZl on
/ the 9Th day Of December, 1884.
Again disappointment waited the anNi-
/ Gus hope OF relief. There was not even
/ a lull I'm the eXasperating Withdrawals
OF gold. on the contrary. they grew larg-
err. and more persistent than ever. Be
tween the fourth day of December, 1874,
and early in February. 1895, 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 $4,000 re, and had
| fallen TO S4l.3i0.lsl Nearly N3.Ow.Ooo had
| been withdrawn within the month imme-
diately preceding this situation.
INACTION OF CONGRESS.
In anticipation OF impending trouble.
! had on the 18th day OF January. 1850. adj
dressed a communication TO the Congress.
| fully setting forth our difficulties and dan
| gerous position. and earnestly recon-
| mending that authority be given the Sec
| rotary OF the Treasury TO issue bonds
J bearing a low rate OF interest. payable
| by their terms I'm gold. FOR the purpose Of
| maintaining sufficient gold reserve. ana
also for the redemption and cancellation
Of outstanding United States notes. and
! the treasury notes issued for the pur-
| chase of silver under the law Of 1870.
| This recommendation did not however,
meet with the approval Of Congress
/ IN FEBRUARY, lsY. therefore, the SltId-
! ton was exceedingly critical. With a re-
serve perilously low and a refusal OF con
! gressional aid. everything indicated that
! the end OF gold payments by the govern
/ bond issues had been exceedingly unsatie-
| factory. and the large Withdrawals or
! gold Immediately succeeding their PUBLIC
| sale i'm open market gave rise TO reason
able suspicion that a large part Of the
| gold paid into the Treasury upon such
sales. was promptly drawn out again by
the presentation OF United States notes or
| Treasury notes and found It's way 10
| the hands of those who had only tempo
rarily parted with II I'm the purchase OF
| bonds.
MORE BONDS NECESSARY.
In this emergency. and in view Of lis
| surrounding perplexities. IL became en-
| trely apparent 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 a higher rate or interest
and badly suited 10 the purpose. but that
a plan must be adopted FOR their disposi-
/ ton promising better results than these
realized on previous sales An agreement
was, therefore. made with a number OF
fnanclers and bankers whereby IL was
/ stipulated that bonds described In the re-
/ sumption act OF 1915, payable IN coin thg-
| ~ years after their date. bearing inter-
| est at the rate of 4 per cent per an
mum. and amounting 10 about %200eo,
should be exchanged for gold receivable
by weight amounting 10 "A little more
tnan SC5 GOO. 600 This gold WAS 10 be de-
livered I'm such installments as would
complete its delivery within about six
months from the date OF the contract. and
at least ons-haf OF the amount was 10
be furnished from abroad. II was also
agreed by those supplying TINS gold mat
dnfing the continuance Of the contract
they would by every means In their pow
or protect the Government against goli
Withdrawals The contract also provided
that il Congress would authorize their
isyue bonds payable by their terms I'M
gold. and bearing interest at the rate
OF three per cent per anrum might Win
in ten days be subs tituted at par Tor tie
four per cent. bonds described In the
agreement
MORE INACTION OF CONGRESS.
on the day this contract was made, its
terms were communicated TO Congress by
a sJecial executive message, In which IL
was stated that more than sixteen NIL
lions OF dollars would be saved 10 me
Oterrment If gold bonds bearing thfeo
per cent interest were authorized 70 be
substituted for those mention ed In tho
contract
The Congress having declined to grant
the necessary authority 10 secure THIS
saving. the contract unmodined. was car
ried out, resulting In gold reserve
amounting 10 si01,5il, 23o, on the sth day OF
July, 1898. Yhe performance or TINS con.
tract not only restored the reserve, but
checked for time the Withdrawals OF
gold. and brought on a period of restored
confidence and such peace ard quiet in
business circles as were or the greitest
possible cause that affects our people.
had not the slightest msgiving con-
corning the wisdom and propriety OF this
arrange ment. and am quite willing 10 an
swer for my full share of responsibility
for its Promotion. ] believe 10 averted
disaster the immnence OF which was. FOR
tunately, not at the time generally Under
stood by our people
Though the contract mentioned stayed
for time the tide OF gold withdrawal,
its good results could not be permanent.
THE PRESENT CONDITION
Recent Withdrawals have -educed tho
reserve from Slc1, 51l 2S0 on the sth day OF
July, 1895, 10 So 1896 How long II will
remain large enough TO render It's In
crease unnecessary "a only matter OF con-
lecture though quite large Withdrawals
Tor shipment In the immediate future are
predicted in well-infofmed quarters
About 100 has been Withdrawn dur
ing the month OF November.
The foregoing statement Of events and
conditions develops the fact that after In
creasing our interest-bearing bonded IN
debtedness more than sl52yl,ev to save
our gold reserve. We are nearly where we
started having now in such reserve. flS,-
33s. 9C6, as against S65,43s5U In February,
1894. when the first bonds were Issued.
Though the amount OF gold drawn
from the Treasury appears 70 De very
large. gathered from the Facts ana
figures herein presented. n acualliy was
much larger. considerable sums having
been acquired by the Treasury within the
several periods stated without the ISSUE
OF bonds on the 18th Of January, 1870, ~
was reported by the Secretary OF the
Treasury that more than Sl72 10000 IN
gold had been Withdrawn for boarding or
shipment during the year, preceding. lie
now repOrts that from January j, lNt.