The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1895-12-04
expenses has o entered into the
estimation of our %solvency.

49,
COf course the state of our funds exclu-
sive OF gold, was entirely immaterial to
the foreign creditor or investor. His
debt could only be paid In gold, and
his only concern was our ability to keep
on hand that kind OF money. On July
lat, 1899, moro tina a year and q half
before the FIRST bonds were issued
to replenish the gold reserve, there
was a net balance in the treasury exclu-
sive OF such reserve of more than SlI4,-
600, which was the quieting feature
Of the situation. 1t was when the gold
OF the treasury began to fall that fright
supervened and our securities held
abroad wore returned for sale and debts
owed abroad were presented for pay
mant. In h meantime extensive ship.
nents of gold and other unfavcrablo in
dications caused restlessnees and fright
among our people at nome. Thereupon
the general state OF funds exclusive OF
gold became also i'm to them
and they, too, drew gold from the treas-
ury, boarding against contingencies.
This IL plainly shown by The largo
increase in the proportion of the gold
withdrawn which WAS restrained by our
W people. As threatening indications
progressed during the fiscal year ending
June 80, 1894, nearly SIS, 00O, 600 in gold
was withdrawn from the Treasury and
about ST, 000, 600 was sent abroad,
while during the fiscal yea ending
June, 1895, over SLIT, coo, 600 was drawn
out, Of which only S66. OO0, 600 was
shipped, leaving the large balance OF
such Withdrawals to be ACCOUNTED tor by
domestic boarding,
1nasmuch as the withdrawal Of our
gold has resulted largely from fright
there is nothing apparent tina will pre-
vent Its continuance or recurrence with
Its natural consequences except such a
change in our financial methods as will
reaasure the frightened market and
make the desire for gold intense. 1t is
not known how the revenue, being gold,
can satisfy those whose only anxiety is
to gain gold from the Governments
store. 1t annot therefore be safe to
rely upon increased revenues as q cure
for our present trouble.
1t Is possible tna the suggestion of
increased revenue as q remedy for the
difficulties we are considering may have
originated in an intimation or distinct
allegation that the bonds which have
been issued ostensibly to rcplenish our
gold reserve were really issued to sup
ply insufficient Nothing can
be further from the truth. Bonds were
Issued to obtain gold for the mainten-
ance of our national credit. As, has
been shown the gold thus obtained has
been drawn again from the Treasury
upon United States Ind Treasury notes.
This operation would have been
promptly prevented If possible, but
these notes having thus been passed to
the Treasury they became the money
OF the Government like any other
ordinary Government funds, and there
WAS nothing to do but 10 use them in
paying Government ex pen when
needed. AT no time when bonds have
been issued has there been any con-
sidcration of the question Of paying the
expenses Of Government with the pro-
ceeds there was no necessity to consider
that question at the time of each bond
Issue we had q safe surplus in the
Treasury for ordinary operations exclu-
a1ve of the gold in our reserve. Ia Feb
ruary, 1894, when the first issue of bonds
was made such surplus amounted to
over Sl8, 000, 900. In November when
the second issue was made IL amounted
to more than S42. 600, 600, ssand in Feb.
ruary, 1895, when bonds for the third
time were issued auch Surplus amounted
to more than 500. 0G0. 600, II now
amouts to sos, 072, 420 30.
Besides all this the Secretary of the
Treasury had no authority whatever to
issue bonds to increase the ordinary rev.
ennes or pay current expenses. L cam
not but think that there has boon some
coufdsion of ideas regarding the fleets
OF the isspe Of bonds and the result of
the withdrawal of gold. II WAS the lat.
ter process and no; thu former that ey
substituting in the Treasury, United
States notes and the Treasury notes for
gold, increased by their amount, the
money which was in the irss instance
subject to ordinary Government expen-
diture. Although the Law compelled ga
increased purchase OF sill liver by the Cow
ernment WAS passed on July IA, 1890;
Withdrawals OF gold from the Treasury
upon the notes given in payment OF such
purchases did not begin until October,
1891. Immediately following shat date
the Withdrawals upon both these notes
and Treasury notes increased very
largely and have continued t0 such an
eXtens that since the passage Of the law
there has been more tina thirteen times
rs mush gold taken out OF the Treasury
pom United States notes and Treasury
notes az purchases, as was thas with
drawn during the eleven and half years
prior to and after July /, 1879. when
specie shipments were resumed.
Itl3 noltser ram nor un ~ 80 charge
a large share OF our present f%inanciAl
~parplsxitity and dangers to tia opera
ton Of the lave OF 1878 and 1890, COM
polling tbs purchase OF silver by the
& 5vernment, wbioh only furnished a new
Treasury obligation. while its gaM
could be Withdrawn and increased by an
overwhelming aood OF liver and a
forced descent DC silver payments shat
even the repeal of these /. VIZ did not
en- purely euro the evils OF their exis.
tence. While 1 have underworld to
make a plain statsmens OF tho dis
ordered condition or our currency and