Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1895-12-13
HE DEAL wITH THE GOLD BARON!

HE DEAL WITH THE GOLD BARONS
frightened by Withdrawals From the |
Treasury. Bonds " ere Issued.
In consequence OF these conditions. the
gold reserve on the first day Of February,
1894, was reduced to $S5. 43S.37. having lost |
more than $31.000.000 during the proceed |
ing nine months. or since April. 1893. Its
replenishment being necessary. and no
other manner of accomplishing 1t being
possible. resort was had to the issue and
sale of bonds. as provided by the resump-
ton act of 1876. Fifty millions OF these
bonds were sold. yielding $6S. 633. 296.7l.
which was added to the reserve fund of
gold then on hand. AS a result of this
operation this reserve. which had suffered
constant and large Withdrawals In the
meantime. stood on the sixth day OF
March. 1894. at the sum of $107. 446.S02 Its
depletion. however. Immediately thereaf-
ter was SO accelerated that on the thir-
teenth day of June, 1894. 1t had fallen to
s64, S73,025, thus losing by Withdrawals
more than $42.0oo.oO0 in five months and
dropping slightly below it's situation when
the sale OF $50000,0O0 in bonds was eject
ed for its replenishment.
This depressed condition grew worse
and the oath day of November, 1894.
gold reserve being reduced to ST.
500. 701, 1t became necessary to again
strengthen It, This was done by another
sale of bonds. amounting to 100.
from which there was realized $5S. 500,
with which the fund was increased to
Sill. ,o2l on the fourth day of December.
1894.
Again disappointment awaited the anx-
ious hope for relief. There was not even
d lull in the exasperating Withdrawals OF
gold. On the contrary. they grew larger
and more persistent than ever. Between
the fourth day of December, 1894 and
early in February, 1895, a period of
scarcely more than two months after the
second reinforcement of our gold reserve.
| by the sale of bonds, 1t had lost by such
Withdrawals more than $69. 1000 and had
| fallen to $H, 340. 1S1. Nearly S45.0O0.000 had
| been withdrawn during the month i'm
| mediately preceding this situation.
| CONGRESS WAS OBDURATE.
| In anticipation OF impending trouble
had, on the 2Sth day Of January. 1870,
addressed q communication to congress-
| fully setting forth our difHculties and
| dangerous position and earnestly rec
| ommending that authority be given the
| secretary of the treasury to Issue bonds
| bearing a low rate OF interest, payable
| by their terms In gold. for the purpose OF
maintaining a sufficient gold reserve and
| also for the redemption and cancellation
of outstanding United states notes anu
| the treasury notes issued for the purchase
| Of silver under the law of 1880 This REQ
ommendation did not. however. meet with
legislative approval
In February. 1895. therefore. the situa-
ton was exceedingly critical. With re-
serve perilously low and refusal OF con-
gressonal aid. everything INDICATED tna'
the end of the gold payments by the gov.
I
| prior bond issues had been exceedingly
unsatisfactory and the large Withdrawals
| of gold Immediately succeeding theil
| public sale in open market gave rise Il
| a reasonable suspicion that a large par
| of the gold paid into the treasury upoi
such sales was promptly Withdrawn on
again by the presentation OF United states
States treasury notes and found its wa.
| to the hands of those who had only tenn
porarily parted with 1t In the purchase o
| bonds.
In this emergency and in view Of tn
surrounding peplexities, 1t became en-
| tirely apparent to those upon whom Tn
| struggle for surety was devolved. no
| only that our gold reserve must Tor tn
| third time In less than 13 months b
restored by another issue and sale o
| bonds bearing high rate OF interest an
badly suited to the purpose. but that
J plan must be adopted for their dispose
! ton promising better results than thos
realized on previous sales. An agreemen
was therefore made with a number Q
fnanciers and bankers whereby 1t wa
stipulated that bonds described in the re-
sumption act of 1875. payable In coin
years after date. bearing interest at tn
rate of 4 per cent. per annum and amount
ing to about So, 100000, should be ex
changed for gold receivable by weight
amounting to q little more than .00(
900. This gold was to be delivered Il
such installments would complete 1t
delivery within about six months fror
| the date OF the contract, and at leas
one-half of this amount was to be fun
nishe6 from abroad. 1t was also agr ee
y those supplying this gold that dur in
he continuance of the contract the
would by every means in their power. 1ort
tect the government against gold will
| drawals. The contract also provided this
IL congress would authorize their issu
| bonds payable by their terms In gold an
! | bearing interest at the rate of 3 Der cen
| per annum might within 10 days be sui
$ | stituted at par for the 4 per cent bond
. | described in the agreement. On the da
the contract was made the terms wei
communicated to congress by a speci
I | executive message, In which II was state
that more than Sl6.00O.0 900 would be save
n | TO the government of gold onds bearir
| per cent interest were authoriz ed to
, | substituted for those mentioned in Il
: | contract.
! Congress having declined to grant IL
! necessary authority to secure this sa
ing the contract. unmodified, was ca
ried out. resulting In q gold reser'
amounting to SLOT 81. $50 on the eli ght d.
. | Of July. 1895. The performance Of tn
but checked for a time the withdrawal
| gold and brought on q period of restor'
: confidence and such peace ard quiet
= business circles as were OF the create
: | possible benefit in every Interest," that q
fects our people, 1 have new er had Il
slightest misgiving concerning the wi
. dom or propriety of this N rangeme
and am quite willing to answ er for n
| full share of responsibility for Its prom
ton. I believe averted a al saster, Il
mminence of which was fortunately n
at the time generally unders TODD by O,
people. Though the contrac mention,
stayed for time the tide of gold wit
drawals it's good results could not
: permanent. Recent Withdrawals have r
duced the reserve from $1Oz on $50 on Il
e sth day of July. 1885, to $7s .sss &c., Ho
long II will reman large enor gh to rend
, Its increase unnecessary 10 q 1iy matt