The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1895-12-07

foos and minRSed WI11 - U4IIU4I 49,
country. 90 that % the close Of the year s0ef
they amounted TO esSi .sop.0.A Immedistsay |
astsr that date aud In January. 1875. . iaw was
passed providing for the resumption OF specie
payment, by which the secretsry OF the treas
uU wns required. whenever additional
circulation was issued TO national bauks
TO retire United States notes equal In amount
To 20 per cent OF such additional national
bank circulation until such notes were re-
duced to o90o01O,0N This law further pro-
vided that on and after the nrst dsy Of Jauu.
ery. 1917. the Unitei states mites then out
sisndins shouli be redeemed In coin. anc n
order "a provide and prepare for such re-
dsmption the secretary Of the treasury vas
authorized not only to use any surplus rove
nues Of the government. but To issue bonds Of
the United States and dispose OF them for
coin and TO use the proceeds for
the purposes contemplated BY the STATUTE
In May. 1873. aud before the date thus appoint-
ed for the redemption and retirement OF thsss
notes, another statue Was passed. foroiddiug
their further cancellation and retirement
some of them had. however. becn previously
redeemed and Cancelled upon the issue Of addi-
tional national bank circulation. as permitted
BY the Law OF 1877. SO that the amount out
standing NJ the time OF the issage Of the act
forbidding their further retirement was o3d,-
tai.oid The law Of 1873 did not stop Mt dis
ttnct prohibition. but contained. In sddition.
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 the United States. they shall
not be retired. cancsied. or destroyed. but they
shall be rsissued and made out again and kept
In circulation This was the condition Of sf-
fairs ON the ist day OF January, 1917. which had
been nxrd upon four years before as the date
for entering upon the redemption and retire.
ment OF all these notes, and for which such
abundant means had been provided. The gov
ernmenf - uu n auouaa lima Sttu tiOu of
owing to the holders OF these notes debts pay
able In gold on demand, which could neither be
retired by receiving such notes tu discharge OF
obligations due the government, nor cancelled
by actual payment In gold. II was forced TO
redeem without redemption and to pay without
acquittance.
There has been issued and sold eoS, 80, 900 Of
the bonds authorized by the resumption act
of is.s. the proceeds OF which. together with
the gold In the treasury, created y gold
fund deemed suficient TO meet the demands
which might be made upon Il for the redenp-
tion Of the outstanding 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 been since
called our gold reserve and ei0o0ol000 has
been regarded as An adequate amount to &C
compltsh Its object This fund amounted ON
the list day Of January, 1873, to uiAi9o.i3d
and though thereafter constantly nuctuating.
It did not fall below that sum in July, isea In
lishment, this reserve amounted to less than
el0o.0)0.O00 containing ut that date only t9',-
OIL ,SS,. In the meantime and In July 1890 an
act had been passed directing large govern
mental monthly purchases OF silver than had
been required under previous laws aud provid-
ing that In payment for silver treasury notes
Of the United States should be issued payable
on demand In gold or silver coin at the discre-
tfon Of the secretary Of the treasury, IL was,
however, declared In the act TO be the estab-
lished policy OF the United States to maintain
the two metals on = parity with each
other upou the present legal ratio. or
such ratio ms may be provided by law.
In view OF this declaration II 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 dscrtmina-
tion in favor OF the gold dollar. the so-called
parity OF the two metals would be destroyed
and grave and dangerous consequences would
be prccipitated by affirming or accentuatng
the constantly widening disparity between
their actual value under the existing ratio.
These obligations are the Instruments which
ever since we have had = gold reserve, have
been used TO deplete IL.
This reserve, rs has been stated had fallen
In April isQS to oo7, oil ,S3t IL has from that
time to the present. with very few and i'm
portant movements, steadily decreased. except
as II has been temporarily replenished by the
sale OF bonds Among the causes for this con-
ssaat saa uniform shZtnkevs N this faad mAx