Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1895-12-07
country, SO tAe. a. the close of the year 1874

they amounted to 1881 900 OH
Immediately after that date. and in january,
1870, law was passed providing for the re-
sumption OF specie payments, by which the
secretary OF the treasury was required when
ever auultlonal circulation was issued to ma
tional banks, to retire United States notes
equai IN amount to 80 per cent of such addi-
tlonnl bank cir circulation until such notes were
reunceu TO SJOO, 900.
This law further provided that on and after
tne ISL DAY OF january, 1879, the United States
notes then outstanding should be redeemed In
com ana In order TO provide and prepare for
such redemption, the secretary of the treasury
was authorized not only to use any surplus
revenues OF the government, but to issue bonds
OF the United States and dispose OF them for
coin, and to use the proceeds for the purposes
contemplated by the statute,
In May, 1873, and before the date thus ap
pointed for the redemption and retirement of
these notes another statute was passed forbid
ding their further cancellation and retirement.
some or them had, however, been previously
redeemed and cancelled upon the issue OF addi-
tional national bank circulation US permitted
by the law OF 1875, so that the amount outstand-
ing At the time OF the passage of the act for
Riding their future retirement was s3i6. .6sl ,0l6
The law OF 1873 did not stop ut distinct pro-
hibition, but contained In addition the follow
notes may be redeemed or be received into the
treasury under any law from any source what
they shall not be retired, cancelled or de-
stroyed, but they shall be re-issued and paid
out again and kept in circulation
This was the condition OF affairs on the lst
day OF January, 1879, which had been fixed
upon four years before as the date for entering
upon the redemption and retirement OF all
these notes, and for which such abundant
means had been provided.
The government was put in the anomalous
situation OF owing to the holders OF its notes
debts payable In gold on demand which could
neither be retired by receiving such notes in
discharge OF obligations due the government,
nor cancelled by actual payment in gold. 1t was
forced to redeem without redemption and to
pay without acquittance.
There had been issued and sold SOS 800 900 Of
lrtt uQf Of
1875, the proceeds of which, together with other
gold In the treasury, created gold fund deemed
sufficient to meet the demands which might be
made upon It for the redemption Of the out
standing United States notes. This fund, to-
gether with such other gold rs might be from
time to time in the treasury available for the
same purpose, has been since called our gold
reserve, and 500 009, 900 has been regarded as
an adequate amount to accomplish its object.
| This fund amounted on the first day OF January,
1879. to Sll4, 800, and though thereafter con-
stantly fiuctaating; 1t did not fall below that
| In April. 1893 for the first time since its es-
tablishment, this reserve amounted to less than
800 600 OOO containing at that date only S97 oil
In the meantime, and in July, 1890, an act had
been passed directing larger governmental
| monthly purchases OF silver than had been re-
/ quired under previous laws, and providing that
in payment for such silver treasury notes OF the
| United States should be issued payable on de-
mand In gold or silver coin at the discretion of
the secretary OF the treasury. 1t was, however,
declared in the act to be the established policy
| OF the United States to maintain the two met
ais on a parity with each other upon the present
legal ratio, or such ratio as may be provided by
| law"
In view of this declaration it was not deemed
permissible for the secretary of the treasury
| to exercise the discretion IN terms conferred
| on him by refusing to pay gold on these notes
when demanded because By such discrimination
in favor of the gold dollars the so-called parity
OF the two metals would be destroyed and grave
and dangerous consequences would be pre-
| cipitated by,afflrming or accentuating the con-
Stantly widening diSDnritv DptwRpn their arttftll
values under the existing ratio.
1t thus resulted that the treasury notes
| issued in payment of silver purchases under the
law OF 1890 were necessarily treated as gold
obligations at the option Of the holder Those
notes on the first OF day OF November, 1893
| when the law compelling monthly the purchase
| of silver was repealed, amounted to more thar
sl55, 100000. The notes of this description now
out standing added to the United States notes
still lundiminished by redemption or cancellation
| constitute volume of gold obligations amount
| ing to nearly 5000 oO,OO0. These obligations
are the instruments which. ever since we have
had gold reserve, have been used to deplett
| IL.
This reserve as has been stated, had fallen
| in April, 1893, to S97, ,0l5,330 1t has from thai
| time to the present, with very few and unim.
| portant upward movements, steadily decreased
except as 1t has been temporarily replenished
by the sale Of bonds Among the causes fol
| this constant and uniform shrinkage in this fund
may be mentioned the general falling of of ex-
ports under the operation of the tarifr law.
| In consequence of these conditions the golC
| reserve on the first day of February, 1894, wa
| reduced to sG5, ,43s, ,377. having lost more thai
s3l .0o0, ,00l during the preceding nine months, o
since April 1893. Its replenishment being nec
essary, and no other manner of accomplishing
1t being possible resort was had to the issu
and sale OF bonds provided for by the resump
tion act OF 1879.
Fifty millions of these bonds were sold
yielding s5S 633. 295.7i, which was added to tn
reserve fund OF gold then on hand. As q reSul
OF this operation this reserve, which had suf
fered constant and large Withdrawals in tn
meantime stood on the 9th day OF March 1894
n 40 m n S,f1 "a
however, Immediately thereafter SO acceler
ated that on the 3oth day of June, 1891, it ha
fallen to S& ,873026. thus losing by withdrawal
more than 81, 900. 600 in five months and drop
ping slightly below its situation when the sal
of S5o,UOJOOO in bonds was eneeted for Its re
plenishment.
This depressed condition grew worse, and OF
the gath day of November, 1894, our gold reServ
being reduced to S57 $50 1ol, it became necessar
sale OF bonds amounting TO s50.000, e01, from
which there was realized S5s, 433 500 with whicl
the fund was increased to Sill l42, OIL on the itl
day of December, 1894
Again disappointment awaited the anxiou
hope for relief There was not even n lull Il
the exasperaLing Withdrawals of gold On tn
contrary they grew larger and more persisten
than ever. Between the 4th day Of December
1894, and early in February, 1905, period o
reinforcement of our gold reserve by the sal
OF bonds. IL had lost by such Withdrawals NOR
than 800, ,o9o ooo 20 and had fallen to 81, ,s4olsl;
tion. In anticipation Of impending trouble.
had on the 18th day Of January. 1925, addresses
o communication to the congress fully settin
forth our difficulties and dangerous position
and earnestly recommending that authority b
given the secretary Of the treasury to issu
bonds bearing low rate of interest, payable b
their terms in gold, for the purpose OF main
tanning sufficient gold reserve, and also fo
the redemption and cancellation Of outstandin
United States notes and the treasury notes Is
! sued for tho purchase Of silver under the la
of 1890. This recommendation did not, howeve
meet with legislative approval
, In February, 1895, therefore, the situation WI
! exceedingly critical. With reserve periloui
> ly low and refusal Of congressional aid, ever,
thing Indicated that the end of gold payment
by the government was imminent. The resul
OF prior bond issues had been exceedingly III
: satisfactory, and the large Withdrawals of go
9 Immediately succeeding their public sale
] open market gave rise to q reasonable susp
r clon that large part OF the gold paid into Il
treasury upon such sales was promptly draw
Q out again by the presentation OF United Stat,
I notes or treasury notes and found its way
t the hands OF those who had only temporari
parted with II in the purchase OF bonds
i In this emergency, and in view OF It's su
Q rounding perplexities it became entirely al
= parent TO those upon whom the struggle Il
5 safety was devolved not only that our gold r
: serve must, for the third time in less this
S thirteen months, be restored by another iss,