The times. [volume] (Richmond, Va.) 1890-1903, 1895-12-17

IL
x5il7, 49, and they continued "i'no".
minution during the early oass y.
ruary., so that on the SIN oi '"a' .,',,s,
the reserve had been reducen W s'1'.
and several millions more hau o''n -,
manded, part OF when "ao 80,
out and afterwards returned to-'"o .a
ury on account OF the Temporal ~
tior NJ confidence. resulting from the
fact that II became geneI"is 49,,
that measures were about 10 DC tahe"
for the replenishment OF the reSci'O'
WHY GOLD WAS WITHDRAWN
Tho large Withdrawals IN Decenno.,
tsqt and i'm January and the early part
Of February. lss5 were due aiihosl en-
tirely to a feeling OF Apprehension III ,.e
n,hlic mind which increased IN lhte"Si.S
from day 10 day, until IL hedils -
the proportions OF panic al" - -
evident 10 All who were lainind. -,
the situation that. unless ehc0.u"' -
were promptly taken 10 checn el'o ~.
ing distrust. the Government ','.',',,,d
compened within q Few days 10 susPsn.
s,old navnents and drop TO a deprecla'eu
az and naner standard. More IMAM
ga ooo o0o Of the amount Withdrawn our
,np the brief period last mehtloHen, va
moi demanded for export, Out wac -,
ont nv people who had become diai i'''.
on account OF the criuca con"'s
the Treasury, In It's relations 10 'no
rency Of the country. .o"s 80 -,
though earnestly appealeu 10 10 -
bavirr failed to make any other pro-
-, Co. meeting the emergency,
= contract. the particulars OF Whlch W.
| ,n,uadistelv communicated TO mat pous'
IS entered into on the sth day OF fep-
ruarv. 1885 for the purchase Oh o'y.''.'
ounces Of standard gold CON- al ,'s u ~
| OF 81 s044l per ounce, 10 ne pan -
the delivery Of United S'a'cS -.
| having thirty wears 10 run, ana ncai
INC ner cent. interest. and the Solo 10
be denosited at the United states SUD
| treasures. BY the terms OF the con-
tract not les. than one-half OF the soiu
/ vyas to be procured abroad, ana 'he
| narfies with whom it was made suPu-
lated that they would las far as iles III
their power, exert all financial influence
, and will make all lesiumate ehoi,a y.
| protect the Treasury OF the thite" SUI
| against the Withdrawals or gold pe"uli-s
~ conplete performance OF this con-
| tract" ,.,,,,,
This undertaking was ialthiui-
l.. and eeicienflv carried out
and no gold was taken from IN,
Treasury TO be used In paying Tor tne
bonds. as had been done In the tMo
former eases. nor was any withdrawn loi
shipment until after the delivery mao
After a large part OF the gold mac
hem FURNISHED from abroad, the Secre
tarv. In order 20 prevent disturbance III
| the rates Of foreign exchange al cru
! cal nerioa. and avoid a condition Whici
! would force gold exports, ana cohsequ'n
| Withdrawals from the Treasury, acqW
esced i'm a departure from the hlera
terms OF the contract. that one-hali
tho coin should be pocured abroad, an
4. Of
! this country. 10 complete the deilNeIs
| Ordinary prudence demanded that I'M
success OF the plan 70 Drotect-44f treas
urv against Withdrawals. should not %
ENDANGERED by insisting upon a sulc
compliance with al the details OF Ut
contract. especially as the GoNernmeh
I could sustain no loss. and the Wh"l
amount Of gold stipulated Tor was -
cured.
CONFIDENCE RESTORED.
The amount Of bonds issued under TN
contract was Sg.3lo. 800, and the amour
of gold received was S55.ll5.2ii.t2 IN
last deposit Of gold 10 complete the os
! livery, under the contract. was June =
! 1895. but the syndicate cchuhutu
make deposits until september II, los
An exchange for United states notes an
Treasury notes. the total amount so u'
nosited being zl5I2l 1924. The ipenehcN
efects of this transaction were felt III
mediately, not only IN this country D'
i'm every other having commercial
financial relations with our people. 'o'
I ddence i'm our securities, as saie an
profitable investments, was az once y
I stored TO such an extent mat they ce@',
1 -, ho returned TO our market for sal
I and very considerable ueilhnu ~
o. vas created abroad, but the most graz
4 l6vinr evidences Of Improvement III o'
y iondition were afforded by the prom
. revival Of business among our own pr
10 Vnle. the increased activity ana eN'ena''
70 Of our domestic. Industrial, ana coiiiile
d cial operations, the rise III
:. prioes OF our principal as'l..
n tural products, and the genera l''i''
e OF relief and security when pecalne q"
t parent in every part OF ti'' - :
J. These encouraging Indications OF
d creasina prosperity still continue al
g, n is reasonably certain that N our pr
# aress is not checked by repetition
n large demands upon our resources OF
l. a failure 10 meet the just eXpectatlo
'e OF the people i'm respect TO the reform
Z ton OF our fiscal system. we are eh''
IL ing upon an era Of material grown
l. development not surpassed IN our n
e tory. The safety of the existing STU
l. ton Is. however, constantly menaced' a
our further progress toward compl'
IS | restoration OF confidence and prosper
le is seriously impeded by the defects
as our currency laws and the doubt a
p uncertain still prevailing In the pun
II mind. especially abroad, concerning
ie future monetary policy OF the Cover
Is mont Until these defects in our Ia
ne are remedied and these doubts are
nj moved. there can be no satisfactory
ir surance OF immunity from periodical q
ie turbanccs, growing out OF the opiis"'i,
he which the Government has been compel
id 10 assume in relation TO the cuiIen'
o. our mast experience with the MI
g. states notes and the Treasury notes ]
in clearly shown that the policy OF atteh
H. inc TO retain these obligations OF
TO Government permanently. as part OF
G. circulating medium, and 10 redeem IN
pm in coin on presentation, and reissue IN
nj after redemption. must be abandoned.
in that such means must be al once provo
he as will have tendency TO facilitate
or efforts of the Secretary 10 accuinui
ly and maintain a coin reserve suihcieh'
L.. amount to keep the public constan
er assured of the stability OF our EN-
X volume OF currency, and of our abl
e. at all times 10 preserve equality IN
is cxchangebale value Of its various pal
u Tho latter alternative which, III
r. opinion. IL adopted would not an
ay the relief demanded by the existing sit
ton. necessarily involves such large
crcascs Of the Understanding pu
debt from time 10 time, and would
an pose permanently upon the GoVernm
nc such onerous and inappropriate duties
ca relation to the paper currency OF
III country. that it ought not 10 be faVora
ny entertained. except as last resort
pe the struggle for the maintenance or