Mexico weekly ledger., 1895-12-05

maintain our gola reserve there never mas been
our way with such money as we had, and the
question whether or not our current receipts
met Our current expenses entered into the es-
innate OF our solyency. OF course the general
state OF orr funds, exclusive Of gold, was eu-
tirely imfnaterial to the foreign creditor and
investor. His debt could only be paid in gold,
and his only concern was our ability 10 keen
on hand that kind q money.
On July 1, 1892, more than O year and q half
before the first bonds were issued, to repl nish
the gold reserve, there was a net balance in the
treasury, exclusive of such reserve. OF les
than slS.Oo,0o. but the gold reserve amounted
to more than S1i I,A00.U11 which was the quiet
ing feature OF the situation. 1t was when the
stock OF gold BEGAN rapidly 10 fall that fright
Superrened, and our securities held abroad
were returned for sale. and debts owed abroad
were pressed for payment In the meantime
extensive OF gold and other un-
favorable indications caused restiessness and
fright among our people at home.
THE OF GOLD.
Thereupon the general state of our funds.
J exclusive OF gold, became also immateriai To
them, and they, too, drew gold from the treas
ury for boarding against all contingencies.
This is plainly shown by the large increasein
the proportion OF gold withdrawn which was
retained by our own people as time and threat
euing incidents progressed. During the fiscal
year ending June 30, 1894, nearly SIS, OO0,0 40 in
gold was withdrawn from the treasury and
about 81 ,Uo,UU9 was sent ABROAD while during
rpo, 900 was drawn out, o. which only 500 OO0. 900
was shipped, leaving q large balance of such
Withdrawals 10 be accounted for by domestic
boarding.
PLENTY OF MONEY FOR CURRENT EXPENSES.
At no time when bonds have been issued has
there been any consideration of the question OF
paying the expenses OF the government with
their proceeds. There was no necessity to con-
slider that question. At the time of each bond
issue we had a safe surplus In the treasury for
ordinary operations exclusive of the gold in
our reserves In February. 1894, when the first
issue of our bonds was made such surplus
amounted to over Slo,G0,O0. In November,
when the second issue was made, IL amounted
to over sf2,0 coo, 600, and in February. 1895, when
bonds for the third time were issued, such sur
| plus amonted 10 more than SI00, 1t now
amounts to S9S or, 421.N.
Besides all this the SECRETARY of the treasury
had no authority whatever to issue bonds TO
increase the ordinary revenue or pay current
expenses. l can not but think there has been
some confusion of ideas regarding the effects
of the issue OF bonds and the results OF the
withdrawal of gold. It was the latter process
and not the former that by substituting in the
treasury United States notes and treasury
notes Tor gold increased by their amount the
money which was in the hrst instance subject
to ordinary government expenditure.
WHEN THE WITHDRAWALS BEGAN
Although the law compelling an increased
purchase Of silver by the goyernmspt was
drawals of gold from the treasury upon the
notes given in payment on such purch ises did
not begin until October, 1891. Immediately fol-
| lowing that5date the Withdrawals upon Doth
these notes and United States notes increased
very largely, and have continued TO such an
extent that since the passage OF ina, law there
has been more than thirteen times as much
gold taken out OF the treasury upon United
States notes and treasury notes issued Tor sill
Yer purchases as was thus Withdrawn during
the eleven and a half years Immediately prior
thereto and after the LIST day OF january, 1879,
when specie payments were resumed
| C~HARGEABLE TO THE SuyER-PURCHASE LAWS.
1t Is neither unfair nor unjust to charge a
large share OF our present financial perplexi-
ties and dangers to the operation OF the laws of
1878 and 1890, compelling the purchase OF silver
4 f- tho .rn " ~ ,pL3Al ~ an1 nrnfR IA m
new treasury obligation upon which Its gold
could be withdrawn, but SO increased the fear
OF an overwhelming flood OF silver and a forced
descent to silver payments that even the re-
peal OF these laws did not entirely cure the
evils OF their existence.
AS TO TREE COINAGE OF SILVER.
While I have endeavored TO make a plain
statement OF this, the dfSordered condition of
our currency and the present dangers menac-
ing. our prosperity, and to suggest a way
which leads to n safer financial system,
1 have constantly had in MIND the fact that
many OF my countrymen whose sineerit, I do
not doubt. insist that the cure for the Ills now
threatening US may be found in the single aud
simple remedy of the free coinage Of silver.
Ihey contend that our mints shall be at once
thrown open to the free, unlimited and indie
pendent coinage of both gold and silver dol
lars OF full legal-tsnder quality regardless of
view OF the fact that the ratio between ths
metals which they suggest calls for one hun
dred cents worth Of gold in the gold dollar as
the present standard and only fifty cents in
in intrinsic worth of silver In the silver dollar,
were there infinitely stronger reasons than can
be adduced for hoping that such action would
secure for US q bimetallic currency moving on
lines OF parity, an experiment so novel and
hazardous as that proposed might well stagger
those who believe that stability Is an impera.
tive condition Of sound money.
No government, no human continuance or
act OF legislation, has ever been able to hold
the Two metals together In free coinage at .
ratio appreciable different from that which
is established in the markets of the world.
A HAZARDOUS EXPERIMENT.
Those who believe that our Independent free
coinage OF silver at an artificial ratio with gold
OF 10 to | would restore the parity between the
metals, and consequently between the coins.
oppose an unsupported and improbable theory
to the general belief and practice of other ma
tons and to the teaching of the wisest states
men and economists Of the world, both in the
past and present, and, what is far more con-
elusive. they run counter to our own actual ex-
psrfences. Twice In our earlier history our
Lawmakers, In attempting 10 establish Q bi-
metallic currency, undertook free coinage up
on a ratio which accidentally varied
from the actual relative value OF the
esn. mg In b o4s c nSes n snaR pe1
greater difficulties and cost of transportation
than nov exist the coins whose intrinsic worth
surely disappeared from our circulation and
was better recognized. Acts Of congress we're
tmpotent to create equality where natural
causes decreed even a slight inequality.
Twice In our recent history we have signally
failedto raise by legislation the value Of sill
yer. Under an act of congress passed In 1873
| LlS government was required 1Or more Enau
twelve years tosexpend annually at least IA .000..
900 In the purchase of silver bullion for coinage.
The act OF July "a, 1890, In a still holder effort,
increased the amount of silver the govern
ment was compelled to purchase and forced II
to become the buyer annually OF 5',OO0,OU
ounces, or practically the entire product OF oul
mines. Under both laws silver rapidly and
steadily declined In value. The prophecy AND
the expressed hope and expectation OF those
In the congress who led In the passage OF the
last mentioned act that IL would re-establist
and maintain the former parity between the
two metals, are still fresh In our memory.
In THE LIGHT OF PAST EXPERIENCE.
In the light of these experiences which ac.
cord with the experiences OF other nations
there is certainly no secure ground for the be
Lief that an act OF congress could now orldgt
an inequality OF so per cent. between gold and
silver at our present ratio, nor is there in the
least possibility that Our country, which ha.
less than one-seventh OF the silver money II
the world, could by Its action alone raise moi
only our own but all silver to Its lost ratiC
with gold. Our attempt to this by
the free coinage OF silver at a ratio differing
widely from actual relative values would bt
the signal for the complete departure OF golG
from our circulation, the immediate and larg,
contraction OF our circulating medium and {
~shrinkage in the real value and monetary Ell
cheney OF all other forms OF currency as the
settled to the level OF silver recommendation
Everyone who receives a fixed salary ant
every worker for wages would find the dollal
in his hand ruthles ly scaled down to the poin
OF bitter disappointment il not to pinchini
privatton- A change in our standard to sllVei
monometailism would also bring on q collapse
of the entire system of credit, which wnei
based on a standard which is recognized anC
adopted by the world of business is mani
times more useful than the entire volume o
curr ncy, and is safely capable of almost in
definite expansion to meet the growth OF trad
and enterprise,
In a seif-invited struggle through darkness
and uncertainty, our humiliation would be in
creased by the consciousness that we ha,
parted company with all the enlightened ant
progressive nations of the world. and weri
desperately and hopelessly striving to NEE
the stress of modern and cUmpeti
ton with q deOaSed and unsuitable currency
and In association with the few weak and leg
gard nations which have silver alone as thetl
standard OF value. All history warns US agalns
rash experiments which threaten vioien
changes in our monetary standard and the de
graduation OF our currency.
NATIONAL FINANCIAL HONOR INVOLVED.
Our eouatry's Indebtedness, whether owinj
by the government or existing between indf
our present standard. To decree by act OF con
gress that these debts hall be payable In les.
valuable dollars than those within the contem.
plation and intention of the parties when con,
of law and without compensation, an amouni
Of property and a volume of rights and inter
ests almost incalcuiable. Those who advocatt
o blind and headlong plunge TO free coinage II
the name Of bimeta1lism, and protesting the
e Rslisf mug ssn sssssaaSrrs Sc 4 sd do SbbRsr Standard Dan and :" 8
concurrent circulation OF both metals In oul
coinage are certainly reckoning from a cloudy
standpoint Our present standard Of value Il
the standard of the civilized world and permits
the only blmetaliisn now possible, or at ieas,
that within the independent reach of any single
nation however powerful that nation may be
While the value OF gold as q standard is stead,
led by almost universal commercial and bust.
mss use, 1t does not despise silver nor seek its
Punishment. Wherever this standard Is main.
tanned. there by It's side, in free and unques
q 4A@-~A - L. 5000 So IL