Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1895-12-06

from time to time in the treasury avalla- |
bic for the same purpose, has been since |
called our gold reserve and 500 100000 has
been regarded as an adequate amount 10 |
its object. This fund amount
ed on the first day of January. 1879, to
S11i 1913, 800, and though thereafter con-
stantly fuctuating, 1t did not fall below
that sum until July, 1892 In April, ls93
for the first time since its establishment,
this reserve amounted to less than SlOo,-
900 coo, containing at that date only w.
OIL $50.
Silver Purchase Act.
In the meantime. and in July, 1880, an
act had been passed directing larger gov
ernmental monthly purchases of silver
than had been required under previous
laws. and providing that in payment Tor
such silver treasury notes of the United
States should be issued payable on de-
mand in gold or silver coin at the d1scre-
ton of the secretary of the treasury. III
was, however. declared in the act TO De
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 pro-
v;ded by law
In "iew of this declaration 1t was not
deemed permissible for the secretary oil
the treasury to exercise the discretion In
terms conferred on him by refusing to pay
gold on these notes when demanded, be-
cause by such discrimination In favor or
the gold dollar the so-called parity OF the
two metals wo I'D be destroyed and grave
and dangerous consequences would be pre-
cipitated by affirming or accentuating the
constantly widening disparity between
their actual values under the existing ra-
ito. 1t thus resulted that the treasury
notes issued in payment OF silver pur-
chases under the law of 1880 were neces-
COZ ;t traa tad nc Unl6 Ohlipa atoms. at the
option of the holder. These notes on the
LIST day of November, 1893. when the law
compelling the monthly purchase or sii-
yer was repealed, amounted to more tnan
$155, 10000. The notes of this description
now outstanding added to the Chiteu
States notes still undiminished by ie-
demption or cancellation constitute VOL
ume of gold obligations amounting TO
nearly $500, 100000. These obligations
are the instruments which, ever
since we have had gold reserve
have been used to deplete II.
This reserve, as has been stated, had
fallen in April, 1898, to $97, oil, $50. 1t mas
from that time to the present, with very
few and unimportant upward move
ments, steadily decreased, except as it
has been temporarily replenished by the
sale of bonds.
Mckinley Bill Blamed.
Among the causes for this 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 neceSsitated,t to some
! extent, the payment of our balances In
| gold; the unnatural infusion of silver
! into our currency, and the increasing
| agitation for it's free and unlimited
| cod ltNgat
! sion as to our disposition or ability II
continue gold payments; the consequen
| boarding of gold at home and the stop
| page of investments of foreign capital
| as well as the return of our securities
| already sold abroad, and the high rat'
of foreign exchange, which induced TIT
shipment of our gold to be drawn
| against as matter of speculation.
In consequence of these conditions, tn
| gold reserve on the first day of Febru
airy. 1894, was reduced 10 $65, 43S,377 hav
ing lost more than $31 600, 900 during tn
preceding nine months, or since April
1898. Its replenishment being necessary
and no other manner of accomplishing
being possible, resort was had to the is
sue and sale of bonds provided for b.
the resumption act of 1875.
Raids on the Gold Reserve.
In February, 1895. the situation wa
exceedingly critical. With a reserv
perilously low and refusal of congres
sional aid, everything indicated that tn
end of gold payments by the govern
ment was imminent. The result of prio
bond issues had been exceedingly unsat
isfactory, and the large Withdrawals c
gold Immediately succeeding their pull
lie sale in open market gave rise to
reasonable suspicion that a large pal
of the gold paid into the treasury upo
such sales was promptly drawn OF
again by the presentation of Unite
States notes or treasury notes and foun
it's way to the hands of those who ha
,, only temporarily parted with it in ii
purchase of bonds.
, In this emergency and in view of il
surrounding perplexities, it became ell
, tirely apparent to those upon whom IL
struggle for safety was devolved. NJ
only that our gold reserve must, fl
: the third time in less than thrice
months, be restored by another isSl
; and sale of bonds bearing high ra
of interest, and badly suited to the pu
pose; but that plan must be adoptt
for their disposition promising better +
suits than those realized on previo,
sales. An agreement was thereto
5 made with a number of financiers al
r bankers whereby it was stipulated TIL
: bonds described in the resumption a
u or 1870, payable IN coin thirty yea
e after their date, bearing interest at Il
e rate of per cent per annum. ar
}. amounting to about So, 000, 900, Shou
be exchanged for gold, receivable !
weight. amounting TO little more ths
/ S65, 900. 900. This gold was TO be deliver,
e in such installmentS as would compile
;, it's delivery within about six montl
v from the date of the contract, and
:. least one-half of the amount was to
;, furnished from abroad. 1t was al
1t agreed by those supplying this gold tn
k during the continuance of the contra
o they would by every means in the
1t power protect the government again
,. gold Withdrawals.
. The Bond Contract.
e The contract also provided that IL congrt
1T would authorize their issue, bonds payable
= their terms in gold and bearing interest
ID the rate of 3 per cent per annum might wit
to In ten days be substituted at par for the 4
d | cent bonds described in the agreement.
lie the day this contract was made its terms w,
d | communicated to congress by q special exc,
Is tive message, in which IL was stated that M
n than Sic. 900. 900 would be saved by the govel
r. ment IL gold bonds bearing per cent int
IN est were authorized to be substituted
A. those mentioned In the contract. The {,
1t gress having declined to grant the necess,
he authority to secure this saving, the contra
or unmodifed. was carried out resulting in
Is gold reserve amounting to SLOT 57l. $50 on
n eighth day of July, 1895. The performance
o. this contract not only restored the reserve,
De checked for a time the Withdrawals Of q
| 4 H. ~ Cd 40,