The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-12-05

withdrawal, its good results could not be
permanent. Recent Withdrawals have
reduced the reserve from $107, 5I1 .230
on the 9th day of July, 1895, to $40, $685.
966. How long it will remain large
enough to render its increase unneces-
sary is only a matter of conjecture,
though quite large Withdrawals for ship
ment in the immediate future are pre-
dicted in well informed quarters. About
$4,000, 900 has been Withdrawn during
the month of November.
The foreign statement of events and
conditions developed the fact that after
increasing our interest bearing bonded
Indebtedness more than $160,000,000 to
save our gold reserve we are nearly
where we started, having now in such re-
serve $79,333, 966 as against $65, 43S, 377
in February, 1894, when the first bonds
were issued Though the amount of
gold withdrawn from the treasury ap-
pears to be very large as gathered from
the facts and figures herein presented
it actually was much larger, considerable
sums having been acquired by the treas
ury within the several periods stated
without the issue of bonds. On the 2Sth
of January, 1895, it was reported by the
secretary that more than SIP, 100000 of
gold had been withdrawn for boarding
or shipment during the year preceding.
He now reports that from January 1,
1879, to July Ia, 1890, period of more
than IL years. only little over SIS, 000,-
600 was withdrawn and that between
July IA, 1890, the date of the passage
of the law for an increased purchase of
silver, and the list day of December, 1895,
or within less than FIVE and one-half
years, there was withdrawn nearly $685.
100000 making total of more than
$403, 100000 drawn from the treasury in
gold since January /, 1879, the date
fixed in 1875 for the retirement
of the United States notes.
Nearly 1927 100000 of the gold thus
withdrawn has been paid out on the
United States notes and every one of the
$46 100000 is still uncancelled and ready
to do service in future gold depression.
More than $76,000,000 in gold has, since
their creation in 1890, been paid out from
the treasury upon the notes given on the
purchase of silver by the government
and yet the whole, amounting to $685.
100000, remains outstanding and pre-
pared to join their older and more eX-
perienced allies in future raids upon the
treasury's gold reserve. In other words
the government has paid in gold more
! than nine-tenths of its notes and still
owes them; it has paid in gold about one.
half of the United States notes given
| for silver purchases without extinguish-
ing by such payment one dollar of these
notes. When, added to all this, we are
reminded to carry on this astounding
financial scheme, the government has in,
Cured a bonded Indebtedness of $780,
100000 in establishing gold reserve
and of $162, 1916 400 in efforts to main,
tain it, that an annual interest charge on
such bonded Indebtedness is more than
| x11 00O 00n continuance in nur prac
ent course may result in further indebt
edness. And that we have suffered OF
are threatened with all this for the sake
of supplying gold for foreign shipments
or facilitating its boarding Mt home, q
situation is exhibited which certainly
ought to arrest attention and provoke
immediate legislative relief l am con.
WINGED the only thorough and practical
remedy for our troubles is found in the
retirement and cancellation of our United
States notes, commonly called green
backs, and the notes issued by the gov
eminent in payment of silver purchases
under the act of 1890.
THE REMEDY.
believe this could be quite readily ac
compshed by the change of these notes
for United States bonds of small as wei
as large denominations, bearing a low
rate of interest. They should be long
term bonds, thus increasing their desir
ability as Investments, and because theil
payment could be well postponed to per
iod far removed from present financia
burdens and perplexities, when under
increased prosperity and resources they
could be more easily met To further in
sure the cancellation of these notes ant
tuI, 1,
added to our currency in lieu of them, ;
feature in the plan should be an authorit,
given to the secretary of the treasury t.
dispose of the bonds abroad for gold, j
necessary, to complete the contemplated
redemption and cancellation permittin.
him to use the proceeds of such bonds t,
take UP and cancel any of the notes tina
may be in the treasury or that may b.
received by the government on any &C
count. The increase of our bonded deb
involved in these plans would be ampl,
compensated by renewed activity ant
enterprise in all business circles, restored
confidence at home, the reinstated faitl
in our monetary strength abroad and tn
stimulation of every enterprise and in
dustry that would follow the cancellation
of the gold demand now affecting us.
In any event the bonds proposed woulr
stand for the extingushment of
troublesome Indebtedness, while in TIN
path we now follow there turks the men
ace of unending bonds with our indebt
edness still undischarged and aggravate,
in every feature. The obligations neces
sary to meet this Indebtedness would no
equal in amount those from which W
have been relieved since 1884 by anti
cipation and payment beyond the IC
quirement of the sinking fund even oyc
surplus revenues. The currency witt
drawn by the retirement of the Unite
States and treasury notes, amounti
to probably less than $4S6,00000t
might be supplied by such gold as wOui
be used by their retirement, or by an il
crease in the circulation of our NatiOnn
banks. Though the aggregate capita
of those now in existence amounts I
more than 1904 900, 900. their outstand
ing circulation and on hand sCcilit
amounts to only about $4,000 900. The
are authorized to issue notes amountin
to 80 per cent of the bonds deposited {
secure their circulation. but in no even
beyond the amount of their capital st0ch
and they are obliged to pay l per cen
tax on the circulation they issue. | thin
they ought to be allowed to issue circu
lation equal to the par value of the bond
they deposit to secure it and that the Ia
on their circulation should be reduce
to one-fourth of / per cent, which woul
undoubtedly meet all the expenses tn
government incurs on their account. i
addition, they should be allowed to sui
stitute or deposit in lieu of the bond
now required as security for their Gil
culation these which would be issued TO
the purpose of retiring the United State