The Portland daily press., 1895-12-04

, made its terms were communicated to
Congress by a special executive message.
in which it was stated that more than
S16.000.0 600 would be saved to the gov
eminent if gold bonds bearing three per
cent. interest," were authorized co be
substituted for those mentioned i'll the
cnotract.
The Congress having declined to CRANE
the necessary authority 20 secure this
saving, the contract, unmodltled, was
carried out, resulting in COLO reserve
amounting to $107, 511, 23O, on the 6th
day of July, 1885, The performance of
this contract not only restored the re-
serve. but checked for time the with
drawals of gold and brought on period
of restored confidence and such peace ana
lqu1et in business circles as were OF the
greatest possible value to every interest
that affects our people. ] have never had
the slightest misgiying concerning the
wisdom or propriety Of this arrangement,
and am quite willing to answer for my
full share Of responsibility for its promo
ton. I believe it averted disaster the
imminenoe of which was fortunately, not
at the time generally understood by our
people.
Though the contract mentioned stayed
for time the tioe of gold withdrawal,
| it's good results could not be permanent.
Recent withdrawals have reduced the
reserve from S107 57l. $50 on the 9Th day
of July, 1895, 80 $40, 333, 966. How long
it will remain large enough to render its
increase necessary is only matter of con-
| lecture. though quite large Withdrawals
! for shipment IN the Immediate future
are predicted in well-informed quarters.
About SIC, 900, 000 has been withdrawn
during the month of November.
| The foregoing statement OF events and
conditions develops the fact chat after
( int hoo nj
indebtedness more than Sl62, 900, 600 TO
save our gold reserve we are nearly
where we started, having now in such
reserve $79, 353, $3.50 as against sos, 453, 377
iii February 1899. when the first bonds
were issued. Though phe amount Of gold
drawn from the Treasury appears TO be
very large, as gathered from the facts
and figures herein presented. il actually
was much larger, considerable sums
/ having been acquired by the Treasury
Within the several periods stated without
the issue of bonds. On the 2sth OF Japu-
! airy, 1895, it was reported by the Secretary
OF the Treasury that more than ST, 3o0.-
| 900 OF gold had been withdrawn Tor
boarding or shipment during the year
proceeding. He now reports that from
! January !, 1887, &c July IA. 1890, period
OF more than eleven years, only a little
over 1928, 600 600 was withdrawn, and that
between July IA, 1890, the date Of the
/
| chase OF silver. and the LIST day of De-
cember. 1898, Or within less than five
and a half years, there was withdrawn
nearly 1875, 600, 000 making a total of
more than s403. 000 900 drawn from the
Treasury in gold since January /. 1879.
the date fixed In 1875 for the retirement
of the United States Notes.
! Nearly 1927, 700. 600 of the gold thus
withdrawn has been paid out for these
! United States Notes, and yet every one
| of the S346 900. 600 is still uncancelled and
ready to do service in future gold depie
tions More than SIG. 900 0G0 in gold
has, since their creation IN 1890. been
| paid out from the Treasury upon the
notes given on the purchase OF silver by
the Government, and yet the whole
amounting to S155 600, 900, except a little
more than $4,000 600, which have been
retired by exchanges for silver at the re-
quest of the holders, remains outstanding
and prepared to join their older and
more experienced allies in future raids
upon the Treasu1y's gold reserve.
| In other words the government has
paid in gold more than nine tenths of its
| United States notes and still owes them
all. 1t has paid in gold one half of its
notes given for silver purchased, without
extinguisbing such payment one dollar
| of these notes.
When added to all this we are reminded
that to carry on this astounding financial
| scheme the Government has incurred a
bonded Indebtedness of S95, 800, 0G0 in estab-
| fishing a gold reserve, and of Sl62, 3l55,
| 400 in efforts to maintain 1T; that the
annual interest charge on such bonded
! indebtedness is more than $11, 900, 600 !;
that a continuance in our present course
may result in further bond issues: and
| that we have suffered or are threatened
with all this for the sake of supplying
gold for foreign shipment or facilitating
it's boarding at home, a situation is ex-
hilbted which certainly ought to arrest
attention and provoke immediate leg1sla
tive relief | am convinced the only
thorough and practicable remedy for our
| trouble is found in the retirement and
cancellation of our United States Notes
commonly called greenbacks, and the
outstanding Treasury notes issued by
government in payment of silver pur-
chases under the act of 1890,
/ believe this could be quite readily
accomplished by the exchange of these
notes for United States bonds of small
as well as large denominations, bearing
a low rate of interest. They should be
long term bonds. thus increasing their
| desirabllity as Investments and because
their payment could be we'll postponed to
a period far removed from present finan-
| cial burdens and perpleTities, when with
increased prosperity and resources they
would be more easily met.
| 10 further insure the cancellation OF
these notes and also provide way by
which gold may be added to our cur
rency IN lieu Of them. feature in the
plan should be an authority given to the
Secretary of the Treasury to dispose of
the bonds abroad for gold if necessary to
complete the contemplated redemption
and cancellation, permitting him to use
the proceeds of such bonds to take up and
cancel any of the notes that may be in
the Treasury or that may be received by
the government on any account.
The increase OF our bonded debt in
volved III this plan would be amply com
pensated by renewed activity and enter
prise in all business circles. the restored
confidence at home, the reinstated faith
in our monetary strength abroad, ana
the stimulation Of every interest and in.
dustry that would follow the cancellation
of the gold demand obligations now
affecting us. liz any event the bonds
proposed would stand for the extinyuisn-
menr of a troublesome indebtedness ::
while in the path we now follow there
turks the menace of intending bonds.
with our Indebtedness still undisoharged
and aggravated in every feature The
obligations necessary to fund this in.