The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-12-04

and MS only concern was our ability
to keep on hand that kind Of money.
On July 1. 1898. more than year and
half before the first bonds were
there was a net balance in the treas
ury exclusive of such reserve of less
than 5000. 900: but the gold reserve
amounted to more than STA, c00,0o
which was the quieting feature of the
situation. 1t was when the stock OF
gold began rapidly to fail that fright
supervened and our securities held
abroad were pressed for payment. In
the meantime extensive shipments OF
gold and other unfavorable indications
caused restlessness and fright among
our people at home. They drew gold
from the treasury for boarding against
all contingencies. This Is plainly shown
by the large increase in the proportion
OF gold Withdrawn which was retained
by our own people as time and threat
ening incidents progressed. During the
fiscal year ending June 80. 1894, nearly
| $S5, 900 In gold was withdrawn from
the treasury and about s77.000.000 was
sent abroad. while during the firscal
year ending June 30, 1895, over s117. 000,-
900 was drawn out, OF which only about
66,000.000 was shipped, leaving the
large balance of such Withdrawals to
be accounted for by domestic hoard
| ing.
Inasmuch as the withdrawal Of our
|
there Is nothing apparent that will
| prevent its continuance or recurrence,
with its natural consequence, except
| such change in our financial methods
| as will reassure the frightened and
| make the desire for gold less intense.
| 1t Is not clear how an increase in reve-
| nue., unless 1t be in gold, can satisfy
those whose only anxiety is to gain
gold from the governments store. 1t
can not therefore be safe to rely upon
increased revenues as a cure for our
present troubles.
BOND SALES AND CURRENT Elk
PENSES.
1t Is possible that the suggestion of
! Increased revenue as a remedy for the
difficulty we are considering may have
originated in an intimation, or distinct
allegation, that the bonds which have
been issued ostensibly to replenish our
gold reserve were really issued to sup
ply insufficient revenue. Nothing can
be further from the truth. Bonds were
issued to obtain gold for the mainten-
| ance of our national 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 II possible but,
these notes having thus been passed to
the treasury. they became the money
of the government, like any other or
binary government funds and there
was nothing to do but to use them in
paying government expenses when
needed.
At no time when bonds have been is
sued have 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 safe surplus in the
treasury for ordinary operations, exclu-
In
February, 1894, when the first issue of
bonds was made such surplus amount
ed to over s1S,000,000. In November.
when the second issue was made, 1t
amounted to more than $42, 100000. In
February, 1895, when bonds for the
third time were issued, such surplus
amounted to more than 500, 900. 1t
now amounts to 500, 072, 430.30.
Besides all this, the secretary of the
treasury has no authority whatever to
issue bonds to increase the ordinary
revenues or pay current expenses. L
cannot but think there has been some
confusion of ideas regarding the effects
of the issue of bonds and the results or
the withdrawal of gold. 1t was the lat
} ter process and not the former onat,
, 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 ex-
l
, ing an Increased purchase OF silver by
, the government was passed on the 14tn
day of July 1890, Withdrawals or gold
, from the treasury upon the notes gwen
, in payment on such purchases, did not
begin until October 1891. Immediately
Following that date, the withdrawal up
ON both these notes and United States
notes increased very largely and nave
continued to such an extent that, since
the passage of that law, there has been
Al
ont Of the treasury upon United States
and treasury notes issued for silver
: purposes as was thus withdrawn our
ing the 111k years fmediately prior
thereto and after the lst DAY OF JAN jail
: nary. 1879, when specie payments were
: | resumed.
: AGAINST FREE COINAGE.
: II Is neither unfair nor unjust 70
2 charge a large share OF our present n
i, nancial perple2ities and dangers 10 tne
n operation of the laws or 1873 ana 1851,
Il Compelling the purchase of silver by
: the government, which not only fur-
: nished a new treasury obligation upon
$ which its gold could be Withdrawn, pu'
so Increased the fear of an overWhelm-
ing flood of silver and forced oss Srsaa
r of these laws did not entirely cure the
o evils of their existence. While 1 nave
s endeavored to make plain statement
: Of the disordered condition or our cur
e rency and the present dangers menac-
l. ing our prosperity. and to suggest q
It way which leads to safer fnanela,
y system. / have constantly had IN mlhu
y 35e fact that many of my country
n men. whose sincerity I do not doubt
J. INSIST that the cure for the Ills now
y threatening us may be found in the sin
y gle and simple remedy OF the free com.
l. age of silver. They contend fnat ouI
y neints shall be at once thrown open &c
lie the free and unlimited and Independent
IS coinage of both gold and silver doiiars
l. of full legal tender quality, regaroles,
i of the action OF any other goveIhiis s.n
3 and in full view of the fact that the ra'
l. rio between the metals which they sug.
n ,gest calls for one hundred cents WORTH
IS ~ gold in the gold dollar at the presen
lie standard and only fifty cents IN lntrin
ne sic worth of silver IN une sINeI uolsaa
II Were there Infinitely stronger reasons
IN than can be adduced for hoping ina