The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1895-12-04
rrovi ions of the Law of 1873.

was $3i6 6Si Oi
Provision. of the Law of 1873.
The law o. ISIS did not stop at distinct
prohibitions bat contained, in addition,
the following express provision: And
when any of said notes may be redeemed
or be rex. lived into the treasury under any
law from any source whatever and shall
belong to the United States, they shall not
be retired. cancelled or destroyed, but
they shall be reissued and paid out again
and kept IN circulation"
The government was thus put in the
ananialous position OF owing to the hold
ers OF it's notes, debts payable in gold on
demand, which could neither be retired
by receiving such notes in discharging
obligations due the government nor can
celled by actual payment in gold. 1t was
forced 20 redeem without redemption and
to pay without acquittance.
There had been issued and sold $95, 500,
600 Of the bonds authorized by the resump
tion act of 1879. the proceeds of which
together with other gold in the treasury.
created gold fund deemed sufficient to
meet the demands which might be made
upon it for the redemption of the out
standing United States notes This fund
together with such other gold as might be
from time to time in the treasury available
for the same purpose, has since been called
our gold reserve. and 500, 900, 900 has been
regarded as an adequate amount to &C
complish its object
Shrinkage Of the Reserve.
The reserve had fallen in April, 1895. to
$91 OH $50. 1t has from that time to the
present. with very few and unimportant
movements. steadily decreased except as
it has been temporarily replenished by the
sale of bonds
Amorg the causes for this constant and
uniform shrinkage in this fund may be
mentioned the great falling off of exports
under the operation of the tariff law un.
til recently in force which crippled our
exchange of commodities with foreign
nations and necessity. to some extent, the
payment Of our balances in gold; the un
natural infusion of silver into our cur
rency. and the increasing agitation for its
tree and unlimited coinage which have
Created apprehension as to our disposition
or ability to continue gold pay yments; the
consequent boarding of gold at home and
the stoppage OF investments of foreign
capital. as we'll as the return Of our Sc
curities already sold abroad. and the
high rate of foreign exchange, which in
uuceu the shipment of our GOLD 10 DC
drawn against, as matter of speculation.
In consequence of those conditions, the
gold reserve on the first day of February,
1894. was reduced to S65, ,43S, ,377, having
lost more than $3l 900 ,00) during the pre-
ceding nine months. Its replenishment
being necessary, and no other manner of
accomplishing it being possible, resort
7yxaS h1i To the eaisspa and sale Of bonds,
provided FOR BY the .vdemptfon att Uf
1875.
Fifty millions of these bonds were sold,
yielding S5S, ,633 295. II, which was added
to the reserve fund of gold then on hand.
As result of this operation this reserve
which had suffered constant and large
Withdrawals In the meantime stood on
the 9th day of March, 1894, at the sum of
! O7,446,S02. Its depletion was, however,
Immediately thereafter so accelerated that
on the 10Th day of June, 1894, it had fallen
to $64,S73,O35. This depressed con-
dition grew worse and on the cath
day of november, 1894, our gold reserve
being reduced to 1850, ,'Ol, it became
Necessary to Again Strengthen 1t.
This was done by another issue of bonds
amounting to $50, ,OoO,HDJ from which there
was realized S5s, 53s, SOC with which the
fund was increased to Sill ,142 ,021. on the
4th day of December, 1894.
Again disappointment awaited the anx
ious hope for relief Between the 4th day
of December, 1894 and early in February,
1895, period of scarcely more than two
months after the second reinforcement of
gold reserve by the sale of bonds, it had
lost by such Withdrawals more than
$50, 100000 and had fallen to Sal $40 lel.
Congressional aid was asked in this emer-
gency but no relief granted, and the third
issue of bonds were made. Recent with
drawals have reduced the reserve from
SlO7, ,5j7 ,23O on the 9th day of July. lS9j,
to N9, 1888 3 %. How long it will remain
large enough to render its increase un-
necessary, is only matter Of conjecture,
though large Withdrawals for shipment in
the immediate future are predicted in
well-informed circles
Immense Withdrawal of Gold.
Though the amount of gold drawn from
the treasury appears to be very large, As
gathered from the facts and figures herein
presented, it actually was much larger,
considerable sums having been acquired
by the treasury within the several periods
stated without the issue of bonds.
On the 2Sth of January, 1895, it was re-
ported bv the secretary of the treasury
that more than $l72, OoO, 600 of gold had
been withdrawn for boarding or ship
ment during the year preceding. He now
reports that from Jan. l, 1879, to July IA,
1890, a period of more than IL years, only
little oyer S2S,O)O,0JO was withdrawn,
and that between July IA, 1890,
the date of the passage of
the law for an increased purchase of sill
yer, and the lst day of December, 1895. or
within less than five and half years.
there was withdrawn nearly 1915, ,OOO,OOo
making a fetal of more than $4O5, O NJ. 600
drawn from the treasury in gold since
January l, 1919, the date fixed in 1875 for
the retirement of the United Stat es notes.
Nearly 1921, 900 ,OOO Of the gold thus
withdrawn has been paid out on these
United States notes; and yet every one of
the 1916, ,0OO.000 is still uncancelled and
ready to do service in future gold deple
tions.
PRESIDENTS RECOMMENDATION.
Would Retire Greenbacks and Outstand.
inn Treasury Notes.