The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1895-12-07

Cause and Cure of Bond Issues-Dire Ef-
feet OF Free Coinage.


ately aware that We approach a subject OF
domestic concern moro Important than any
ona t nrse S IL neS n n a an
/ icate prodicament as 10 require prompt and
The compulsory purchase and coinage OF
silver by the government unchecked and
unregulAted by business conditions and
Needless OF our currency needs. which for
more than IS years diluted our circulating
medium. undermined confidence abroad IN
our. financial ability. and az last culminat-
ed In distress and panic at home, has been
recently stopped by the repeal OF the laws
which forced this reckless scheme upon
the country
Review OF Financial Legislation.
The currency denominated United States
notes. and commonly known as green
PACKS .Se was , issued ln large yo,ums aI,slsng
ally 20 meet the exlgencies or that period.
IL will be seen BY a reference TO the debates
passed authorizing the issue OF these notes
that their advocates declared they were i'm
the emergency OF war In almost II not All,
| the laws relating to them some provision
was made contemplating their voluntary
tity or them, however, were kept on foot
and mingled with the currency OF the
country. 80 that at the close OF the year 1874
| they amounted TO s3si, 999O73.
Immediately after that date and in jan
he a OF wa spece lor
which the secretary OF the treasury was
required, whenever additional circulation
/
United states notes equal IN amount 20 81
per cent OF such additional national bank
| circulation until such notes were reduced
to $500. 900, 600. This law further provided
! that on and after the LIST day OF January,
1919. the United States notes then out,
/ In order 20 provide and prepare for such re-
demption. the secretary OF the treasury
was authorized not only TO use any SUR
plus revenues of the government. but 70
Issue bonds Of the United States and dis
pose OF them for coin, and TO use the pro-
/ rpQdQ for the ntIrpOQDa con fnm nlalR Inv the
statute
In May. 1878. and before tho date thus ap-
\ pointed for the redemption and retirement
| or these notes. another statute was passed
/ forbidding their future cancellation and
been prev PREVIOUSLY ''1 redeemed and cancelled
upon the issue of additional national bank
circulation. as permitted by the law Of
the time OF the passage OF the act forbid
ding further retirement was 500. esi.Oi6.
Creation OF the iseserve.
This was tho condition OF AFFAIRS on the
LIST day or January. 1872. which had been
| nx0d upon four years before aa the date
for entering upon the redemption and re-
such abundant means had been provided
The governmsnt was put In the anomalous
notas. debts pSyabie IN ~" ao li'o on demand
4 which could neither be retired BY rcceiv-
ing such notes In discharge Of obligations
due the government, nor cancelled by actual
payment In gold. II was forced TO redeem
Without redemption and 10 pay without
/
III the meantime. and In July 1890. an act
| had been passed directing larger govern
Sssn q
treasury notes q shs United states should
IL, parable dana nj ~ cold
silver coin. at the discretion Of the secre-
tary Of the treasury. IL was, however. de-
ICY u the United States 70 maintaln the
two metals on a parity with each ether
as Im may DO provided BY law" In View 20, Of
| this declaration n was not deemed per-
missibie for tho secretary Of the treasury
| 10 exercise the discretion I'm terms con-
| forred upon hssss by refusing 20 pay gold IN
these notes when demanded. because by
/ such determination I'm favor OF tho gold
dollar the so-called parity OF the two metals
would be destroyed and grave and danger
ogs consequence would be ProciPItsied BY
/ widening Disparity between their actual
values under the existing ratio.
Cause of Depletion OF she Reserve.
IL thus resulted that the treasury notes
issued IN payment OF silver purchases un-
/ der the law OF 1880 were necessarily treated
as gold osbilgations. At the option Of the
vember, 1893, when the law compelling tho
monthly purchase OF silver was repealed
notes e OF this description now s outstandr ~
added 20 the United States notes still uIi
ai ,1,1,. ny aSunmpa,ois 1f conservation.
i amounting 10 nearly 500. Co., 900. These OBJ
LEGATIONS are the instrnments which. ever
been used 10 deplete H.
Among the causes for this constant and
mentioned the great failing on OF exports
under the operation of-the terlfr law until
chanse OF commodite lch SrRp, fore 9nr es
tiona ana neccssitatcd 10 some extent the
payment q our balances In gold. the I'M
and the Increasing agitation for It's free
and UNLIMITED coinage. which have created
apprehension as 70 our disposition or abn
ity 20 continue gold payments: the conse-
quent noard,ing OF gold a. home and tho
as well as the return OF our securitles sold
abroad: and the high rate OF foreign ex-
change. which Induced tho shipment Of our
| speculation.
Bond rssnes Nece.sitat.d.
In. consequence OF these conditions. tho
Goid reserve re on ne iss aey 81 February,
more than ssi.ooo.oo0 during. the preceding
nine. months, Or since April. 1924 It's re-
HAMMER o. accomplishing Il being possible pS SiSs
resort was had 10 the issue and sale OF
bene es pTgy ,,r fgr BY ihs rsdsmgon act
sold, yielding SIS. eSs. 1911. which was add
Cd % the reserve fund OF Eold then on hand.
which had suffered constant and large
withdraweis II the meantime. stood on the
sis.so2 It's depletion was. however. I'M i'm
mea i,. thereaater 20 ncceistatsd that
Se is as a % Ran by ~ y hsf sss
more than sf2,000.o0o IN I'VE months. and
dropping alightiy below IL altenti0n when
the sale or ~. 600 900 ~ bonds was effected
for ifa roplonIshmcnt.
This depressed condition grew worse.
and on the 2fth day Of November. 1894. our
gold reserve being reduced 10 t57.Ce .7oi. Il
became necessary 20 again strengthen ~.
This was done by another sale or bonds.
Amounting 90 ffoo0o,ooO. for which there
was realized 90. b1H. 600. with which the
fund was Increased 20 ti1i, lt2.02l on tho 9TH
day OF December. 1894
Congress Refused 60 Act
Again disappointment awaited the nnxi.
Gus hope for relief. In anticipation Of
impending trouble, 4 had on the 18th day
OF January. 1895 addressed communlcn-
tlon 10 the congress fully setting forth our
difficulties and dangerous position. and
earnestly recommending that authority be