The Portland daily press., 1895-12-04

regarded as an adequate amount t.
accomplish its object. This funt
amounted on the 1st day OF January 1877!
to s144. 1915, 800 and though thereafter con
stantly fiuctuating it did not fall below
that sum until July, 1892. In April
1898, for the first time since its establish
ment this reserve amounted to less thar
500. coo, 600, containing at that date only
S97. Oil. $50.
In the meantime and in July, 1890
all act had been passed directing larger
1 governmental purchases OF silver thar
had been required under previous laws,
and providing that in payment for such
silver Treasury notes of the United States
should be issued payable ON demand in
gold or silver coin at the discretion OF
the Secretary OF the Treasury. 1t was,
however. declared in the act to be 1.-THE
established policy Of the United States
to maintain the two metals on parity
with each other upon the present legal
ratio. or such ratio as may be provided
by law"
In view of this declaration it was not
deemed permissible for the Secretary OF
the Treasury to exercise the discretion
in terms conferred on him, by refusing to
| pay gold on these notes when demanded,
because by such discrimination in favor
OF the gold dollar the socalled parity of
the two metals would be DESTROYED, and
grave and dangerous consequences would
be precipitated by affirming or accent
uating the constantly widening disparity
between their actual values under the
existing ratio.
1t thus resulted that the Treasury notes
issued in payment of silver purchases
under the law of 1890 were necessarily
treated as gold obligations, at the option
of the holder. These notes on the list day
of November. 1893, when the law com
polling the monthly purchase of silver
was repealed, amounted to more than
S155, 600, 900. The notes OF this descrip-
ton now outstanding added TO the United
States notes still undiminished by re-
demption or cancellation constitute a
volume of gold obligations amounting
to nearly $500, 900, 600 These obligations
are the instruments which ever since we
to deplete it. This reserve, as has been
stated, had fallen in April. 1893, TO S97,
Oil, $50. 1t has from that time TO the
present. with very few and unimportant
upward movements. steadily decreased,
except as 1t has been temporarily replen-
ished by the sale of bonds.
Among the causes for the constant and
uniform shrinkage in this fund may be
mentioned the great falling off of ex-
ports under the operation OF the tariff
law until recently in force. which Grip
pied our exchange of commodities with
foreign nations and neoessitated to
some extent the payment of our
balance in gold; tine unnatural infusion
of silver into our currency, and the in
creasing agitation for Its tree and I'M
limited coinage. which has created ap-
prehension as to our disposition OF
ability to continue gold payments
the consequent boarding of gold at home
and the stopping Of investments Of for
eign capital, as we'll as the return of our
securities already sold abroad; and the
high rate of foreign exchange which
induced the shipment of our gold to be
drawn against as a matter of speculation.
in consequence of these conditions the
gold reserve on the first day of February,
1894, was reduced to SOS, 43S, SIT, having
lost more than S31, 900, 000 during the
preceding nine months, or since April
1893. Its replenishinent being necessary,
and no other manner of accomplishing
being 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 were sold,
| yielding $5S, 633, 295. II, which was added
to the reserve fund of gold then on hand
| Al a result of this operation, this reserve
which had suffered constant and large
Withdrawals in the meantime, stood on
the sixth day of March, 1894, at the sum
| of S107. 446, S02 Its depletion was, how
ever. Immediately thereafter SO aoceler-
ated that on the 30th day of June, 1894,
it had fallen off s64. 873, 025 thus losing
by Withdrawals more than $42, 900, 900 in
five months and dropping slightly below
its situation when the sale of sou. COG, QUO
in bonds was effected for it's replenish-
ment
This depressed condition grew worse
and on the 24th day of November. 1895,
our gold reserve being reduced to S57, :
| 669, FOL. it became necessary to again
strengthen it. This was done by another
sale of bonds amounting to $40. 600. 600,
from which there was realized S5S, 538, 500
with which the fund was increased to
! $111, 142, OIL on the 4th day of December
| 1894.
! Again disappointment awaited the
anxious hope for relief There was not
even lull in the exasperating with
drawals of gold. On the contrary they
grew larger and more persistent than
ever. Between the 4th day of December
1894, and early in February, 1895, a
period of scarcely more than two months
after, the second reinforcement of our
! gold reserve by the sale OF bonds, it had
| lost by such Withdrawals more than $50, :
600. and had fallen to S41. $40, 1Sf.
Nearly s43, 600. 900 had been Withdrawn
within the month Immediately proceed
| ing this situation.
In anticipation of impending trouble,
l had on the 18th day of January. 1895,
addressed communication to the Con-
gress fully setting forth our difficulties
and dangerous position, and earnestly
recommending that authority be given
the Secretary of Treasury to issue bonds
bearing low rate of interest, payable by
their terms in gold, for the purpose Of
maintaining sufficient gold reserve,
and also for the redemption and cancella-
ton of outstanding United States Notes
and the Treasury notes for the purchase
of silver under the law of 1890 This
recommendation did not however, meet
with legislative approval In February.
1898, therefore, the situation was exceed
ingly critical. With reserve perilously
low, and a refusal of Congressional aid,
everything indicated that the end of gold
payments by the Government was immi-
inent. The results of prior bond issues
had been exceedingly Unsatisfactory, and
the large Withdrawals Of gold imme
diately succeeding their public sale in
open market gave rise to reasonable
suspicion that large part of the gold
paid into the Treasury upon such sales
was promptly drawn out again by the
presentation of United States notes OF
Treasury notes found its way to the
handssof those who had only temporarily
parted with it in the purchase of bonds