New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-12-04

ne or
II II is said that these notes II held by the
Government can be used to obtain gold Tor our
reserve the answer Is easy. Inc people oraw
gold from the Treasury on demand upon United
sition that the Treasury can on demand draw
gold from the people upon them would be re-
garded in these days with wonder and amuse-
ment And even II this could be done, there Is
nothing to prevent those thus parting with their
gold from regaining IT the next day or the next
hour by the presentation or the notes they re-
ceived in exchange for H.
The Secretary Of the Treasury might use such
notes taken from a surplus revenue to buy gold
i'm the market. OF course he could not 90 this
without paying a premium. Private holders or
odd unlike the Government, having no parity
To maintain would not be restrained from
making the best bargain possible when they
furnished gold TO the Treasury: but the moment
the Secretary of the Treasury bought gold on
anv terms above par he would establish gen
oral and universal premium upon It thus break
ing down the parity between goid ana silver
Witch the Government is pledged to maintain
and opening the way to new and serious compi-
cations In the meantime the premium would
NOT remain stationary. and the absurd specta-
Gle might be presented Of dealer selling gold
20 the Government. and with united states
notes or Treasury notes in his mana |mmeoiate-
" clamoring for us return anu d ie'aie DIT
higher premium.
II may be claimed that a large revenue and
radnndant receipts might favorably affect the
situation under discussion by aHorulng an OPP
nortunity of retaining these notes In the Treas
nrv when received. and thus preventing their
presentation for gold. Such retention 70 be use
full ought to- be at least immeasuraply perma-
nant. and this Is precisely what Is prohibited
ca fer az United States notes are concerned,
bv the law Of 1878 forbddng their further re-
tirement. That statute in so many words pro
,ides that these notes when received into the
Treasury and belonging to the United states
shall be paid out again and kept In circula-
ton" 49,, 49,.
eminent could not refuse to pay out United
states notes and Treasury notes In current
transactions when demanded and insist on pay
ING ont silver alone and still MAINTAIN tne parl-
-, betweon that metal and the currency repre-
senting gold. Besides, the accumulation IN the
treasury of currency OF any kind exacted from
the people through taxation is justly regarded
as an evil and it cannot proceed far without
vigorous protest against an unjustifiable reten-
zion 81 money from the business Of the country
and a denunciation Of scheme OF taxation
which proyes itself to lie unjust when 1t takes
from the earnings and income OF the citizen
money So much in excess OF the needs or Gov
eminent support that large sums can be gath
cred and kept In the Treasury. such a condi-
ton has heretofore in times OF surplus revenue
led the Government TO restore currency to the
people by the purchase OF It's nnmatured pohd rs
at a large premium and by large increase or
It's deposits in National banks. and we easily
remember that the abuse Of Treasury accumua-
ton has furnished most persuasive argument
I'm favor Of legislation radically reducing our
tariff taxation
THE KIND OF MONEY NOT THE AMOUNT
receipts would in a sentimental way improve
the situation by inspiring confidence in our
solvency and allaying the fear of pecuniary ex-
haustion. And yet through all our struggles
to maintain our gold reserve there never has
been any apprehension to our ready ability
to pay way with such money as we had;
and the question whether or not our current re-
cepts met current expenses has not entered
into the estimate of solvency OF course
the general state Of our funds exclusive or gold
entirely immaterial to the foreign creditor
and 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 !. 1892. more that year and half
before the first bonds issued to replenish
the gold reserN there was net balance In the
Treasury, eXclua.ve Of such reserve, of less than
sl3 900 003: bur the gold reserve amounted TO
more thar STA, 900 900. which was the quoting
feature OF the situation. 1t was when the stock
Of GOLD began rapidly to fall that fright super
vened and our securities held abroad were re-
turned for sale and debts owed abroad were
pressed for payment In the mean time extern
sive shipments of gold and other unfavorable
indications caused restessness and fright among
our people at home Thereupon the general
state of our funds, exclusive of gold became
also immaterial TO them and they. too drew
gold from the Treasury for boarding against al
contingencies This is plainly SHOWN by the
large increase in the proportion OF gold with
drawn which retained by our own people
time and threatening incidents progressed.
During the fiscal year ending June 30, 1894,
nearly $S5O00.0O0 in gold was Withdrawn from
the Treasury and about s77.000.OOo was sent
abroad, while during the fiscal year ending
June 80 1885 over size 900 drawn out.
Of which only about 66000OO9 was shipped,
leaving abe large balance OF such Withdrawals
to be accounted for by domestic boarding.
Inasmuch, the withdrawal OF our gold has
resulted largely from fright there is nothing
apparent that will prevent its continuance or
recurrence with its natural consequences, except
such a change in our financial methods as will
reassure the frightened and make the desire FOR
gold less intense. 1t is not clear how an IN
crease in revenue, unless 1t be In gold, can sat
isfy those whose only anxiety is to gain gold
from the Governments store
1t cannot therefore be -afe to rely upon in
creased revenues as a cure 10: our present
troubles.
1t is possible that the suggestion OF Increased
revenue as a remedy for the difficulties we are
considering may have originated In an intlma-
ton or distinct allegation that the bonds when
have been issued ostensibly to replenish our
gold reserve were really issued to supply insuf-
fcient revenue. Nothing can be turther from
the truth Bonds were Issued to obtain gold FOR
the maintenance of our National credit: AS has
been shown, the gold thus obtained mas Deen
drawn again from the Treasury upon united
States notes and Treasury notes. This opera
ton would have been promptly prevented II
possible: but these notes having mus Oeen
passed to the Treasury. they became the money
of the Government like any other Ordinary
Government funds, and there was nothing to
do but TO use them in paying Government ex-
penses when needed.
NO BONDS TO PAY RUNNING EXPENSES
At no time when bonds have been Issued has
there been any consideration Of the question OF
paying the expenses Of the Government. with
their proceeds There was no necessity to con-
slider that question. At the time OF each bond
issue we had safe surplus in the Treasury for
ordinary operations exclusive Of the gold In
our reserve In February. 1894. when the first
issue Of bonds was made, such surplus amount
ed to over SIS 900 900; in November. when the
second issue made, ii amounted to more
than S42 900 000 and in February, 1895. when
bonds for the third time were issued such sur
plus amounted to more than 500 0O0 1t now
amounts to sos. 072 APO 30
Besides all this the Secretary Of the Treasury
had no authority whatever to issue bonds TO in
crease the ordinary revenues or pay current
penses.
| cannot but think there has been con-
fusion of ideas regarding the effects Of the issue
Of bonds and the results Of the withdrawal OF
gold 1t was the latter process and not the
h,