The advocate., 1895-12-11

the constantly widening disparity between
their actual value under the existing ratio.
These obligations are the instruments which
ever since we have had gold reserve, have
been used to deplete It.
This reserve, as has been sta ted, had fallen
In April, 1893, to So7,011 ,33l Il has from that
time to the present, with very few and Inn
portant movements, steadily decreased, except
as IL has been temporarily replenlShed by the
sale Of bonds Among the causes for this con-
slant and uniform shrinkage In this fund may
be mentioned the falling OF Of exports under
the operation Of the tarih law until recently in
force, which crippled our exchange Of COM
modities with foreign nations and necessitated
to some extent the payment Of our balances in
gold the unnatural infusion Of silver into our
currency and the increase in agitation
for It's free and unlimited coinage
which have created apprehension as to our dis
position or ability to continue gold payments,
the consequent boarding Of gold at home and
the Stoppage Of investments Of foreign capital
as well as the return Of our securities already
sold abroad and the high rate Of foreign eX-
change, which induce the shipment Of our gold
to be drawn against us as q matter OF Specula-
tiOn. In consequence Of these conditions the
gold reserve on the 1st day Of February, 1894,
was reduced to sos, ,439, ,S77, having lost more
than s31,CO00OO during the preceding nine
months, or since April, 1893. It's replenishment
being necessary and no other manner Of ac-
complishing 1t being possible, resort was
had to the issue and sale Of bonds pro-
vided for by the resumption act Of 1875
Fifty millions Of these bonds were sold, yield
ing S53 633, ,295.71, which was added to the re-
serve fund of gold then on hand. AS q result
Of this operation this reserve, which had suf-
fered constant and large Withdrawals In the
meantime, stood on the 9Th day Of March, 1894,
at the sum Of Sl07, ,446,8O2. It's depletion was,
however, Immediately thereafter so accelerated
that on the Both day of June, 1894, 1t had fallen
to S64,87S,025, thus losing by Withdrawals more
than &2, 900 In five months and dropping
slightly below this situation when the sale OF
$4,000 900 in bonds was effected for its redemp-
tion. This depressed condition grew worse,
and on the Goth day Of November, 1894,
our gold reserve was drained to SY,0690l
1t became necessary to again strengthen it.
This was done by another sale OF bonds
amounting to 100000 600, from which there was
realized 85S,5SS 800 with which the fund was In
creased to Sill ,0l2, ,02t on the attn day OF De-
cember, 1894 Again disappointment awaited
the anxious hope for relief There was not
even lull in the exasperating Withdrawals Of
gold. On the contrary, they grew larger and
more persistent than ever. Between the 4th
day Of December, 1884, and early in Febr uary,
1895, a period Of scarcely more than two
months after the second reinforcement Of our
gold reserve by the sale Of bonds it had lost
by such Withdrawals more than $3.50, 900 900, and
had fallen to S4l ,O3),l8i Nearly $4,000 ,O0J had
been withdrawn within the month Immediately
preceding this situation
In this emergency, and in view Of its sur
rounding perplexity it became entirely appar-
ent to those upon whom the struggle for safety
was deV0lved not only that our gold reserve
must, for the third time in less than thirteen
months, be restored by another issue and sale
OF bonds, bearing rate Of interest and badly
suited to their purpose but that plan must
be adopted for their disposition promising bet
ter results than realized on the previous sales
An agreement, therefore was made with o
number OF financiers and bankers whereby
1t was stipulated that bonds de-
scribed In the resumption act Of 1875
payable in coin thirty years after their date,
bearing interest at the rate of per cent per
annum and amounting to about f62,000,O0O
should be exchanged for gold, receivable by
weight amounting to a little more than $685.
100000. Its good results could not be perma-
nent. Recent Withdrawals have reduced the
reserve from SlO75 571 ,23O on the 9th day of July
1895, to S79, 1886, ,966
On the 29th Of January, 1896, it was reported
by the secretary of the treasury that more
than t172,OOO,OOO Of the gold had been with
drawn for boarding or shipment during the
year preceding. He now reports that from
January 1, 1879, to July IA, 1890, period OF
more than eleven years, only little over S2S,-
700 was withdrawn, and that between July
IA, 1890, the date Of the passage Of the law for
an increased purchase OF silver and the 1st
day Of December, 1895, or within less than Eve
and half years, there was Withdrawn nearly
1915 1000 making total Of more than S4OS,-
100000 drawn from the treasury gold since
January /, 1879, the nate fixed In 1875 for the
retirement Of the United States notes.
Nearly 1921, 900 900 OF the gold thus withdrawn
has been paid out on those United States notes,
and yet every one of the si6 OO0,O 900 is still un-
canneIod and raadv IN do aaPvipa in f1tura