The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1895-12-19

large cash balance at its close, without
imposing additional taxation In any
form upon the people, but | adhere to
the opinion heretofore expressed that
the secretary Of the treasury ought al
ways to have authority to issue and
sell or use in the payment Of expenses,
short. time bonds, bearing a low rate OF
interest, to supply casual deficiencies
In the revenue.
with complete return TO the nor.
NAL business conditions Of the country
and proper legislative and executive
supervision over expenditures, the rev.
enue laws now in force will, In my
opinion, yield ample means for the sup
port Of the public service upon the
basis now established; and upon the
assumption, which seems to be justified,
that the progress now being made
toward the restoration Of our usual
state OF prosperity will continue with
out serous interruption, It Is estimated
that there will be q surplus of nearly
~, 1000, 900 during the fiscal year Of 1897.
During the fiscal years 1894 and 1895
the ordinary expenditures of the gov
ernment have been decreased $27 2S2,.
csc. 20 as compared with the fiscal year
1898, and IL is believed that, with the
cooperation Of congress, further re.
ductions can be made In the future
without impairing the efficiency Of the
public service"
Continuing, he says THE large
Withdrawals of gold in December, 1894.
and in January, and in the early part
Of February, 1896, were due almost en-.
tirely to feeling Of apprehension in
the public mind, which increased in in.
| tensity from day to day until il reached
the proportions of panic, and IL was
evident to oil who were familiar with
the situation that, unless etfectual
steps were taken tol check the growing
distrust, the government would be
compelled in q few Gays to suspend
gold payments and drop to depreciat,
ed silver and paper standard. More
than $48, 900, 600 Of the amount with.
drawn during the brief period last men.
toned was not demanded for export,
but was taken out by people who had
become alarmed on account OF the crit
ical condition Of the treasury in its re.
lations to the currency Of the country.
1.-The purchase of $500, 900 ounces OF
gold followed, it being In the contract
that not less than nehalf the gold
was to be procured from abroad, but
after large part of the gold had been
furnished from abroad, the secretary,
In order to prevent disturbance In rates
Of foreign exchange at critical period.
and avoid a condition which would
force gold exports, and consequent
Withdrawals from the treasury, acqui,
esoed in a departure from the literal
terms Of the contract, that one.half OF
the coin should be procured abroad,
and accepted deposits Of gold then held
In this country to complete the deliv.
cry. Ordinary prudence demanded
that the success OF the plan to protect
the treasury against Withdrawals
should not be endangered by insisting
upon q strict compliance with all the
details Of the contract, especially as the
government could sustain no loss, and
the whole amount of gold stipulated d
for was secured The amount OF bonds
issued under this contract was $62 ,3l5,.
400 and the amount OF gold received
was $85, ll6, 244, 62."
The beneficial effects of this transac
tion, the secretary says, were felt i'm
mediately, not only in this country but
In every country having commercial
relations with us
Confidence in our securities" he
continues, "was at once restored, and
these encouraging indications OF in
creasing prosperity still continue. The
safety OF the existing situation is, how.
ever, constantly menaced and our fur
ther progress toward complete restor
alton of confidence and prosperity il
seriously i'm sded by the defects in oul
currency laws and the doubt and un
certainty still prevailing in the public
mind, and especially abroad, concern.
ing the future monetary policy OF the
government.
sour past experience with the United
States notes and the treasury notes has
clearly shown that the policy Of AT
tempting to retain these obligations Of
the government permanently as a part
of our circulating medium, and TO re-
deem In coin on presentation and reis
sue them after redemption, must bt
abandoned, or that such means mus
be at once provided as will have a ten
dency to facilitate the efforts of the sec
retary TO accumulate and maintain {
coin reserve sufficient in amount Il
keep the public constantly assured o.
the stability of our entire volume oi
currency and of our ability at all times
TO preserve equality In the exchanged
BILE value Of its various parts. The lat
ter alternative, which, In my opinion
n adopted, would not afford the relie
demanded hy the asistin9 aitnation