Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1895-12-05

words provides that these notes when
received into the Treasury and belonging
70 the United States shall be 'tpaid out
again and kept IN circulation"
1t VIII, moreover, be readily seen that
the government could not refuse to pay
out United Staten notes and Treasury
notes In current transactions when de-
manded and Insist Gu paying out silver
alone ard still mnlntain the parity be-
tween that metal and the currency rep
resentlng gold. besides, the accumulation
IN the Treasury OF currency OF any kind
exacied from the people through taxation
Is Justly regarded as an evil, and It can
not proceed far without vigorous protest
against an unjustinable retention OF
money from the business OF the country,
anu a denunciation Of scheme Of taxa
lion which proves Itself 70 be unjust when
u takes from the earnings and income
OF the citizen money 80 much in excess
OF the needs Of government support that
large sums can DO gathered and kept in
the Treasury. Such condition has here
tofore In times OF surplus revenue led
the government to restore currency to
the people by the purchase OF its unma-
tured bonds at a large premium. and by
a large increase OF Its deposits in national
banks, and we easily remember that the
abuse Of Treasury accumulation has furn-
lshed a most persuasive argument in favor
OF legislation radically reducing our tariff
taxation.
Perhaps 1t is supposed that sufficient
revenue receipts would in a sentimental
way improve the situation, by inspiring
confidence In our solvency and allaylng the
fear OF pecuniary exhaustion, and yet,
though all our struggles to maintain our
gold reserve there never has been any
apprehension as to our ready ability to pay
our way with such money as we had and
the question whether or not our current
receipts met our current expenses has not
entered into the estimate of our solvency.
OF course the general state OF our funds
exclusive Of gold, was entirely immaterinl
to the foreign, creditor and investor. His
debt could only be paid In gold, and his
only concern was our ability to keep on
hand that kind OF money
On July 1, 1892, more than year and
half before the first bonds were issued to
replenish the gold reserve, there was net
balance In the Treasury exclusive OF such
reserve, OF less than $4,000, 900; but the
gold reserve amounted to more than S114,-
100000, which was the quieting feature OF
the situation. 1t was when the stock of
gold began rapidly to fall that fright SUI
pervened and our securities held abroad
were returned for sale and debts owed
abroad were pressed for payment. In
the meantime extensive shipments OF gold
and other unfavorable indications caused
restiessness and fright among our people
at nome. Thereupon the general condition
OF our funds exclusive OF gold, became also
N al 20 he a..
gold from the Treasury for boarding
against all contingencies, This is plainly
shown by the large increase in the proper
ton OF gold withdrawn which was retained
by our own people as time and threatening
incidents progressed. During the fiscal
year ending June 90, 1894. nearly $50, 0OO,-
900 In gold was withdrawn from the Treas
ury, and about $1,000. 900 was sent abroad,
while during the fiscal year ending June
&c. 1896, over s117,00O,O0O was drawn out,
of which only s66,000.0O0 was shipped,
leaving the large balance of such with
drawals to he accounted for by domestic
boarding. Inasmuch as the withdrawal Of
our gold has resulted largely from fright.
there is nothing apparent that will prevent
its continuance or recurrence, with its
natural consequences, except such
change In our financial methods as will
reassure the frightened and make the de-
sire for gold less intense II is not clear
how an increase In revenue. unless 1t be
In gold, can satisfy those whose only anx-
iety is to gain gold from the governments
store II cannot. therefore, be safe to rely
upon increased revenues as a cure for our
present troubles. II is possible that the sug-
gestion of increased revenue as a remedy
for the difficulties we are considering may
have originated in an intimation or dis
tlnct allegation that the bonds which have
been issued ostenslbly to replenish our
gold reserve were really issued to supply
insufficient revenue. Nothing can be fur
Their from the truth. Bonds were issued to
obtain gold for the maintenance OF our ma
tlonal credit As has been shown, the gold
thus obtained has been drawn again from
the Treasury upon United States notes
and Treasury notes. This operation would
have been promptly prevented IL possible;
but these notes having thus been passed
to the Treasury they became the money of
the government, like any other ordinary
government funds, and there was nothing
to do but to use them in paying govern
ment expenses when needed.
At no time when bonds have been is
sued has there been any consideration of
the question of paying the expenses of the
government with their proceeds. There
was no necessity to consider 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 re-
serve In February, 1894, when the first
issue of bonds was made, such surplus
amounted to over $4,000 900: In November,
when the second issue was made, It
amounted to moro than S42, 000, 900. and In
February, 1895. when bonds for the third
time were issued, such surplus amounted
to more than s100.000O00 1t now amounts
to S9S073.4 20, Besides al this, the Sec
rotary Of the Treasury had no authority
whatever to issue bonds to increase the or |
binary revenues or pay current expenses.
| cannot but think there has been some
confusion Of ideas regarding the effect of
the issue of bonds and the results of the
withdrawal OF gold. II was the latter pro-
cess and not the former that by substituting
In the Treasury United States notes and |
Treasury notes for gold increased by their |
amount the money which was in the first |
instance subject to ordinary government |
expenditure.
Although the law compelling an in
creased purchase OF silver by the govern
ment was passed on the 14th day Of July,
1890, Withdrawals OF gold from the Treas
ury, upon the notes given In payment on
such purchases did not begin until October,
1891. Immediately following that date the
Withdrawals upon both these notes and /
United States notes increased very largely.
and have continued to such an extent that
since the passage of that law there has
been more than thirteen times as much
a t.I.. ~ |