The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-12-05

between the circulative and 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 obliga-
tons at the option of holders. These
notes on the LIST of November, 1893,
when the law compelling the monthly
purchase of silver was repealed, amount
ed to more than $155,000,000. The
notes of this description now outstand-
ing added to the United States notes
still undiminished by redemption or can
collation., constitute a volume of gold
obligations amounting to nearly $780,
100000. These obligations are the in
struments which ever since we have had
a gold reserve have been used to deplete
it.
OUR GOLD RESERVE.
This reserve, as has been stated, had
fallen in April, 1898, to $97, $3.50. 1t
has from that time to the present, with
very few and unimportant movements,
steadily decreased except as it has been
temporarily replenished by the sale of
bonds. Among the causes for this con-
slant ard uniform shrinkage of this
fund may be mentioned the great falling
off of exports under the operation of the
tariff law until recently in force, which
crippled our exchange of commodities
with foreign Nations and necessitated
to some extent the payment of our bal
ances in gold; the unnatural infusion of
silver into our currency and the increase
in agation for it's free and unlimited
coinage, which have created apprehen-
sion as to our disposition or ability to
continue gold payments, the consequent
boarding of gold at home and the stop
nc of Investments nf fOrnipn nItQI
as well as the return of our securities
already sold abroad, and the high rate of
foreign exchange which induced the ship
ment of our gold to be drawn against
as matter of speculation. In cOnse-
quence of these conditions the gold re-
serve, on the first day of February, 1894,
was reduced to $65, 43S,377, having lost
more than $31, 100000 during the pre-
ceding nine months, or since April, 1893.
Its replenishment being necessary and
no other manner of accomplishing it
being possible, resort was had to the
issue and sale of bonds, provided for by
the resumption act of 1875. Fifty mil
| lions of these bonds were sold, yielding
| $5S, 633, 291.71, which was added to the
reserve fund of gold then on hand. AS
result of this operation, this reserve,
which had suffered constant and large
Withdrawals in the meantime, stood on
the 9th day of March, 1894, at the sum
of $107, 446S02 It's depletion was, how
ever, Immediately thereafter so acceler-
ated that on the 30th day of June, 1894,
it had fallen to $64, S73,025, thus losing
by Withdrawals more than 1000, 00O
in five months, and dropping slightly
below its situation when the sale of fifty
millions in bonds was effected for its
replenishment. This depressed condi-
ton grew worse and on the 24th day OF
November, 1894 our gold reserve being
reduced to $57 100000, it became neces-
sary to again strengthen it. This was
done by anoter sale of bonds, amounting
to S50,000,000, from which there was
realized S5S, 53S,500, with which the
fnnd was increased to Sill, 142,021 on
the 4th day of December, 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, 1894, and
early February, 1895, period of scarce
ly more than two months after the sec
ond reinforcement of our gold reserve by
the. sale of bonds, it had lost by such
Withdrawals more than S69,UOO,OOO and
had fallen to $41, $40, 1871. Nearly S43,.
600 900 had been withdrawn within the
t;oI T. r. ant;n;notion If imnendinp
t t,om; had ON +be 1Stb dov Of JANUARY
iiiSoS oddrassed q communication to the
congress fully setting forth our Difficult
t;os and DANGEROUS nosition and ear
Mostly recommmending that authority BIZ
g;yon tho sncretorv of the treasury t,
issue bonds drawing n low rate of inter
est nayahle in their terms in gold. foI
tho nnTnose of maintaining n sufficien
cold reserve and also for the redemptiol
and concelIotion of outstanding United
States notes and the treasury notes is
sued for the purchase of silver unde
5ie ,aw t u howeTcr mnnt with leeislatiy,
annroyal.
In February. 1896, therefore, the situa
tion was exceedingly critical, with re
serve perilously low and refusal of con
pressional aid. everything indicated tina
tbe end of gold payments by the govern
mont was Imminent. The results O
nrior bond issues had been exceedingl.
insotisfa Glory and the large withdrawal
of gold Immediately succeeding the pub
lie sale in omen market gave rise to
rea sonoble suspicion that a large part o
the gold nut into the treasury upon sucl
sales was promptly drawn out again OF
the presentation of United States note
and treasury notes and found it's way t
tbo hands Of those who had only tempo
20 riIv narted with it in purchase of bonds
In this emergency and in view of it's sur
rounding nernleyities. it became entirel,
annarenf 70 those upon whom the strug
OLE for ca fetv was deyolved that not onl,
orr gold reserve must for the third tim
| -, o. ~ - 4 % -. -, A. ~ ,oe+o,od b,, 4, ',