Courier Democrat. (Langdon, N.D.) 1891-1920, 1895-12-12

~ attsntio0, ana one NJ present " sacR Y
prompt and wise Treatment s853 s9
We may we'll he encouraged . earnest sflt
takon toward Improving oar seconunic and nnan.
ctal situation, and when wo appreciate noMs
' ~ way hss sssn ~
interest III these subjects. III 4 $5ss&&l
BY command Of the people. q customs seyenlcal
mas. Of our countrymcn. and which, while in:s
our trade relations f and mpeded our sntrsnce
TO the markets of the world, has been super. a
s sse, ny tarln policy which IN principle q
inent 70 obstuct the avenues to our peoples
cheap living or lessen their comfort and content
vantages to favorites md which. while en-
couraging intercourse and trade with other ma
lions recognizes the fact that American sell.
reliance, thrift and ingenuity can build up oair
countrys industry and develop It's resources more
surely re, than ,enervating paternulis,n
by the government. unchecked and unrcgulated
ny business conditions and needless OF our cur
diluted our circulating medium. undermined con.
hdence abroad in our financial ability and ut last
eliminated in distress and panic ut home. has
forced this reckless scheme upon the country.
The things thus accomplished, Notwithstanding
their extreme Importance md bcncfcent Effects,
fall far short OF curing the monetary evils from
which ", we suffer us z result OF long indulgence
In - ill-advised financial expeslents
The currency commonly known as greenbacks
was issued in large volume during the late civil
wnr and was intended originally to meet the
reference to the debates in congress at the time
the laws were passed authorizing the issue Of
these notes that their advocates declared they
the laws relating to them some provision was
were kept on foot and mingled with the cur,
yeaf g ths n eSup ss thai az 81 ss q
Immediately after that date and in January.
1870. a law was passed providing for the re-
tary of the treasury was required, whenever nm
additional circulation was issued to national
amount to so per cent Of such additional national
bank circulation until such notes were reduced
to $500, 1000. This law further provided that
on and after the first Of January. 1879, the!
United States notes then outstanding should be
redeemed In coin, and. In order to provide and
the treasury was authorized not only. to use any
surplus revenues Of the government but to issue
for coin and to use the proceeds for the purposes
contemplated by the statute. r
A Tread-NIilI Affair
In May, 1875 and before the date thus ap-
pointed for redemption and retirement Of these
their further cancellation and retirement. Some
Of them, had, however, been previously redeemed
the e NJ S
1875, that the amount outstanding at the time
Of the passage OF the act forbddinG their fur
ther retirement was $348, 8S1 DIG.
The law of 1873 did not stop ut distinct pro-
hibition, but contained. in addition, the follow
Ing Hbsa apy o sn notes NAV be
or be received into the treasury under any law
from any source whatever and shall belong to
celed or destroyed, but they shall be reissued
and paid out again and kept in circulation"
day Of January, is7S, Which had been fixed upon
four years before as the date for entering upon
the redemption and retirement OF all these notes
The government was put in the anomalous POSI-
ton of owing to the holders Of its notes. debts
payable in gold on demand, which could neither
obligations due the government nor Cancelled by
actual payment in gold. 1t was forced to re.
There had been issued and sold s955oo 600 Of
1879 the proceeds of which, together with other
gold in the treasury, created n gold fund deemed
sufficient to meet the demands which might be
made upon it for the redemption of the outsand-
ing United States notes. This fund, together
with such other gold as might be from time to
purpose. has been since called our gold reserve,
and $1,000 900 has been regarded as an ade-
guate amount to accomplish, its object. IDS 1nn
to Sill 1913. 800. and though thereafter constant
~ fuctuating, it did not fall below that sum UNI
since its establishment this reserve amounted to
! less than 500. 600, containing at that date
only S97, oil $50.
had been passed directing larger governmental
! monthly purchases of silver than had been re.
quired under previous laws, and providing that
in payment for such silver treasury notes Of the
United States should be issued, payable on De.
mnnd, in gold or silver coin. at the discretion OF
declared. in the act to be 1.-THE established policy
of the United States to maintain the two metals
on Il parity with each other upon the present
law law '''' V '' ~
Really Gold Obligations
permissible for the secretary Of the treasury to
exercise the discretion in terms conferred on him
sS pay o sG sacS mates n in
Of the gold dollar. the so-called parity of the two
metals would be DESTROYED and grave and dan
gerous consequences would be precipitated by
affirming or accentuating the constantly widening
disparity between their actual values under the
existing rate.
| in payment Of silver purchases under tn. NY of
1890 were necessarily treated rs gold Obligat1ons
| The first day Of November, $685. when the law
compelling the monthly purchase Of silver was
repealed m th to STe tn NOW
added to the United States notes still undimin-
shed by redemption or cancellation. constitute
$500, 900, 900. These obligations are the fnstru-
ments which, ever since we have had gold re-
serve, have been used to deplete it.
This reserve has been stated had fallen In
| April, 1898, to $97, oil, $3.50. 1t has from that
time to the present, with very few and unlu,-
portant upward movements steadily decreased. ex-
cept us 1t has been temporarily replenished ~
the sale of bonds.
Among the causes for this constant and uniform
shrinlaGe in this fund mcy he mentioned the
great falling of of expnts under the operati on OF
the tariff law until recently in force which Grip
Med our exchange OF commodities with foreign
nations and necesitated, to some extent. the
payment of balances in gold the unnatural
infusion of silver into our currency and the IN
creasing agitation for its free and unlimited
coinage, which have created apprehension as to
our disposition or ability to continue gold pay-
ments; the consequent boarding Of gold at h,ne
and the stoppage Of investments o; foreign capi-
Ia. rs we'll as the return of our securities nj
ready sold abroad. and the high rate OF foreign
exchange, which induced the shipment Of our
gold to be drawn against as matter of specula.
lion.
The Bond Issues. x
In consequence of these conditions, the gold re-
serve on Feb. l. 1904 reduced to $65, 43S,377
saving lost mere than SOL 900 900 during the pre-
rr,iing nine months. since AIrll, 1898. Its re-
punishment hcing necessary. and no other manner
ST accomplishing it heing possible resort was had to
the Issue and sale of bonds provided for by the re-
sumption act of 1875 Fifty millions OF these bonds
we're sold. yielding $685. GS3 .295.7 H., which twns
uddei To the reserve fund of gold then on hand.
AS result of this operation, this reserve which
had suffered constant md large Withdrawals in