The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1895-12-12


l1to6 b wm y sesa b Q rsapeene, % -
Gsoaeeo IN congress at ths tine hvD Vwo
Iaoed authorizing he Issue a thsss noesa.
mat their advocates declared tAsy were IN
tended Tor only temporary use and 70 meet The
emergency OF waE. In almost, II not al. The
laws relating 70 them, some provisioo vas
made contemplating thar voluntary or com
pulsosy retirement. A large Quantity Of them.
however. were kept on foot AID minded With
tho currency Of tho country. % that at tie
close Of the year 1874 they amounted to $751;.
Ss0.O5S Immediately after that date and In
January, 1875. Law was passed providing for
the resumption Of specie payment .by
which the Secretary Of tho Treasury
vas required. whenever additional circu.
latioa was issued to National banks.
to retire United States notes in equal amount
to 50 per cent Of such additional National bank
circulation until such notes Were reduced to
$S00.000O00. This Law further provides that on
and after tho Last day Of January. 1879, the
United States notes then outstanding, should
b redeemed in coin, and in order to provide
and prepare for such redemption tho secretary
OF the treasury was authorized not only to use
any surplus revenues Of the government, but to
issue bonds Of the United States and dispose OF
purposes contemplated BY the statute.
In May, 1873. and before the date thus ap-
pointed for the redemption and retirement Of
these notes, another statute vas passed for
bidding their further cancellation and retire
ment. Some Of them had, however, been pro-
viously redeemed and cancelled upon tho issue
OF additional national bank circulation az per.
mitted By tho Law of 1875. 30 that tho amount
outstanding at the time Of the passage of the
act forbidding their further retirement was
SO,SSl!216 Tho Law Of 1878 did not stop at dis
tinct prohibition but contained in addition
the following 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 belong to tho United States, they, hall not
b retired. cancelled, or destroyed. but they
shall be se-issued and paid out again and kept
in circulation" This was the condition Of at
fairs an the LIST day Of January, 1879, which had
been fixed upon four years before as the date
@sos a Rse Tor Which snsh
abundant means had been provided The gov
eminent was put in the anomolous situation Of
owing TO ths holders Of its notes, debts payable
in gold ON demand which could neither be 10
t1red by receiving such notes in discharge Of
obligations due the government not cancelled By
actual payment in gold. 1t vas forced to re-
deem without redemption and 20 pay without
acquittance.
There has bean issued and sold So, 500 900 Of
the bonds author. Fed by the resumption act OF
ISIS, the proceeds of which, together with other
gold in the treasury. created gold fund deemed
sufficient to meet the demands which might b
made upon It for the redemption Of the out
standing United States notes. This fund, to-
gether with suoa other gold as might be from
time tottme in the treasury available for the
same purpose, has been since called our gold
reserve and 500 0JO,OO has been regarded as an
adequate amount to accomplish its object
This fund amounted on the LIST day of January
lsi9 to STA .l96, 1S6 and though thereafter con-
stantly fuctuatiug, it did not fall below that
sum in July, 1892. In April; 1888, for tbs first
time since its establishment this reserve
amounted to less than S1JO, 200, 900, con tanning
at that date only 81 oil, $50.
The Bond Contract.
The message reviews at great length the low
efing of the g I'D reserve, the shipment of gold,
tho issuing Of bonds, the entering into the bond
contract with capitalists, and his messages to
Congress for relief. Continuing, the President
says:
The Congress having declined to grant tho
necessary authority to secure this saving the
contract unm0dified was carried out, resulting
in a gold reserve amounting to S107, S7l 80 ON
the Sth day of July, 1896. The performance Of
this contract not only restored the reserve but
checked for a time the Withdrawals of gold and
such peace and quiet in business circles as
were of the greatest possible value to every in
forest that affects our people. 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 response
bility for its promotion
believe it averted disaster, the imminence
of which is fortunately not at this time gener.
ally understood by our people Though tho
contra t mentioned stayed for time the tide
Of gold withdrawal. its good results could not
be permanent. Recent Withdrawals have re-
duced the reserve from SlO' .511,2iO on the eth
day of July. 1895, to Ss3sS,96 How long it
will remain large enough to render its increase
unnecessary is only matter of conjecture,
though quite largo Withdrawals for shipment
in the immediate future arc predicted in well
informed quarters About $l6,OOo,OOO has
been withdrawn during the month of November
The foregoing statement of events and condi-
lions develop tho fact that after increasing our
interest bearing bonded Indebtedness more
are nearly where we started, having now in
such reserve SO 339S0. against SIS 43s 377, in
February 1894, when the first bonds were issued.
Though the amount of gold drawn from tho
treasury appears to be very large, as gathered
from the facts and figures herein present it
actually was much larger. considerable sums
having been acquired by the treasury within
bonds.
On the 2sth of January, 1895, it was reported
by the secretary of the treasury that more than
$l72, 100000 Of gold had been withdrawn for
boarding or shipment during tho year pre-
ceeding. He now reports that from January I,
1879, to July II, 1890, period of moro than 10
years. only little over $4,000 900 was with
drawn and that between July II, 1890 the date
of the passage of the law for an increased pur-
chase of silver, and the first day of December,
1885,, or within less than five and half years,
there was withdrawn nearly <375, 100000,
making the total Of more than $a0sO00,00o
drawn from the treasury in gold since January
lst., 1879, the date fixed in 1873 for the retire
ment of the United States notes.
Nearly $S27, D00. 900 of the gold thus withdraw
have been paid out on these United States
notes, and Jet every one of the Sl6,OO 600 II
still uncancelled and ready to do service in fu-
ture gold depletions. More than So, OOI 90 In
gold has since their creation in lS o been paid
out from the treasury upon the notes .giv,n On
the purchase Of silver by the government;
and yet the whole. amounting to S15S 100000
except a little moro than SIS 1900 which have
been retired by exchanges for silver at tho 10.
quest of the holders, remain outstanding and
prepared to join their older and moro o..
perienced allies in future raids upon the troas.