Walker Lake bulletin. (Hawthorne, Nev.) 1883-1926, 1895-12-04
FURTHER CANCELLATION FOR
BIDDEN.


In May. 1878. and before the date
thus appointed for the redemption and
retirement of these notes another stat
ute was passed forbidding their further
cancellation and retirement. Some of
them had. however, been previously
redeemed and cancelled upon the issue
of additional national bank circulation
as permitted by the law of 1875, SO
that the amount outstanding at the
time of the passage of the act forbid
ing their further retirement was $780,
4, 6Sl. 0l6. The law of 1878 did not stop
at distinct prohibition. but contained
in addition the following express pro-
vision. land 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,
Cancelled or destroyed but they shall he
issued and paidsout again: aud keptin
circulation" ,....z..-...
This was the condition of affairs on
/ the LIST day of January, 1879, which
had been fixed upon four years before
as the date for entering upon the re-
demption aud retirement of all these
notes, and for which such abundant
means had been provided. The Gov
eminent was put in tho situation of
owing to the holders of its notes debts
payable in gold on demand. which
could neither be retired by receiving
such notes in discharge of obligations
due the Government nor Cancelled by .
actual payment in gold. II was forced
to redeem without redemption and to
pay without aoquittanoe.
OUR GOLD RESERVE.
There had been issued and sold $685.
800, 900 of the bonds authorized by the
resumption act of 1875. the proceeds
of which. together with other gold in
the Treasury. created gold fund
deemed sufficient to meet the demands
which might be made upon 1t for the
redemption 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 800. 600. 900 has
been regarded as an adequate amount
to accomplish its object. This fund
amounted on the LIST day of January.
1879. to $114.192, 800 and though
thereafter constantly f1uctuatinq. it did
not fall below that sum until July
1899. In April. 1898. for the first
time since its establishment, this re-
serve amounted to less than $1,000
900, containing at that date only $97.-
1880. In the meantime. IN July.
1890, an act had been passed directing
larger Governmental monthly gpur-
chases of silver than had been required
under previous laws, and providing
that in payment for such silver treas
ury 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
"tbe established policy of the United
States to maintain the two metals on
parity with each other upon the pres
ent legal ratio. or such ratio as may be
provided by law" In view of this de-
claration it was not deemed permissible
for the Secretary of the Treasury to ex-
ercise 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 so.called parity of the
two metals would be destroyed and
grave and dangerous consequences
would be precipitated by affirming or
accentuatipg the constantly widening
disparity between their actual values
under the existing ratio.
1t thus resulted that Treasury notes
issued in payment of silver purchases
under the law of 1890 were necessarily
treated as gold obligations. at the
option of the holders. These notes ON
the st day of November, 1893, when
the law compelling the monthly pur-
chase of silver was repealed, amounted
to more than 81 30. 100000 The notes
Of this description now outstanding
added to the United States notes still
un diminished by redemption or cancel
lation, constitute a volume of gold
obligations, amounting to nearly $780,.
900, 900. These obligations are the in.
struments which, ever since we have
, had gold reserve, have been used TO
deplete this reserve, which. as has been
stated, had fallen in April. 1895 to
$97. $3.50. II has from that time
to the present with very few and un-
important upward movements, steadily
decreased, except it has been temporar-
lily replenished by the sale of bonds
The consequent boarding of gold at
home and the stoppage of investments
of foreign capital, as well as the return
of our securities already sold abroad,
and the high rate of foreign exchange
which induced the shipment of onr
gold to be drawn against, is a matter
of speculation. In consequence of these
conditions the gold reserve on the lst
day of February, 1894. was reduced 10
500. 438,377, having lost more than
$31, 900. 900 during the preceding nine