Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1895-12-12
-

from the facts and figures herein present =
actually was much larger. considerable szzzzs
having been acquired by the treasury NIs1-ssz
the several periods stated without the issue -
bonds.
On the 2Sth Of January, 1885, it was reported
BY the secretary Of the treasury that more shsn
$1i20OO.OOo of gold had been withdrawn Tor
boarding shipment during the yesT PIKE
ceeding. He now reports that from Jsnuasy 4
1873, to July IA, 1890 period of mora than 10
years, only a little over IS, 00c 0ce was with
drawn and that between July IL, 1890 the date
or the passage OF the law for an increased nuE-
chase of silver, and the first day of Decenber.
1897, or within less than five and a half yeSEz.
there was withdrawn nearly $S7s, 0o0. 900.
making the total of more than $sfS, 000ocG
drawn from the treasury in gold since JanuaxT
1st.. 1873, the date fixed in 1875 for the retire
ment of the United States notes.
Nearly SS27, O0o, 600 of the gold thus withdrawn
have been paid out on these United Stats
notes, and yet every one of the S4s.Ooo0Oo Is
stlu uncancelled and ready to do service il fu-
ture gold depietioos- More than $1,000 600 ia
gold has since their creation in 1890 been paid
out from the treasury upon the notes given On
! the purchase of silver by the governments
and yet the whole, amounting to SIS 600 900
except a little more than S1o,0J0,O00 which have
been retired by exchanges for silver at the re-
quest OF the holders, remain outstanding and
prepared to join their older and more az
perienced allies in future raids upon the treas
ury's gold reserve.
On July l, 1892, moro than year and a half
before ths first bonds were issued to replenish
the gold reserve, there was net balance in the
) treasury exclusive of such reserve OF less
than $i3,Oo0,000, but the gold reserve
amounted to more than s1iI,OOo,ooO, which was
the quoting feature of the situation. Il was
when the stock of gold began rapidly to fan
that fright supervened aud our securities held
abroad were retained for sale and debts owed
abroad were pressed for payment. In the mean
time extensive shipments of gold and other ms
| favorable indications caused restIessness and
fright among our people at home.
The act of July H. 1890, in still holder effort
fOfS
was compelled to purchase. and forced it to
become the buyer annually of 81 100000
ounces. or practically the entire pro-
duct of mines Under both laws
silver rapidly and steadily declined in value,
The prophecy and the expressed hope and ex-
Petation of those in the congress who led In
che passage of the last mentioned act that it
would re-establish and maintain the former
parity between the two metals are still fresh in
our memory.
Retirement of Treasury Notes.
In other words, the government has paid in
gold moro than nine-tenths of its United States
notes and still owes them all It has paid in
yoll about one-half of its notes given for
nlver purchases without extinguishing by such
payment one dollar of these notes. And added
% all this we are reminded that to carry on
his astonishing financial system the govern
pent has incurred a bonded indebtedness Of
$500 300 In establishing gold reserve and Of
16zS15s 400 IN efforts to maintain it, that en- an
| nual interest charge of such bonded In
! debtedness is more than S11,0OOO0O, that
a continuance in our present course
may result in further bond issues,
! and that we have suffered threatened
with all this for the sake of supplying gold for
foreign shipment or facilitating its boarding at
| home, situation is exhibited which certainly
ought to arrest attention and provoke 1mmedi-
ate legislative relief 1 am convinced the only
thorough and practicable remedy for trou-
| bles is found in the retirement and cancellation
/ of United States notes, commonly called
greenbacks and the outstanding treasury notes
issued by the government in payment of silver
purchases under the act of 1885,
| believe this ould be quite readily accom-
plished by the e<change of these notes for q. S.
| bonds of small well as large denominations
bearing low rate of interest. They should be
| long term bonds, thus increasin their desir-
| ability as investments and because their pay
| ment could be well postponed to a period far
| removed from present financial burdens and
| perplaxities when with inc reased nrasn0-ie~
To further insure the CANCEL alton of these
notes and also provide a way by which gold
| may be added to our urrency in lieu of them,
a feature in the plan should be autl GRITTY
| given to the Secrc tary of the Treasury
| to dispose of the bonds abroad for gold If
necessary, to complete the contemplated re-
| demption and cancellation permitting him
OF 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 gov
eminent on any account The increase of our
| bonded debt involved in this plan would be
| amply compensated by renewed activity and en-
| terprise IN all business circles, the restored
confidence at home, the reinstated faith in our
monetary strength abroad. and the stimulation
| of every interest and industry that
would follow the cancellation of the
gold demand obligations affecting Us.
| In any event the bonds proposed would stand
for the extinguishment OF Troublesome in
debtedness, while in the path now follow
| there turks the menace of unending bonds with
our indebtedness still undischarged and aggra-
waited in every feature The obligation neces-
sary to find this indebtedness would not equal
"A amount those from which we have been re-
| 1ieved since 1884 by anticipation and payment
beyond the requirements of the sink ing fund
out of our surplus revenues. The currency
| Withdrawn by the retirement of the
United States notes and treasury notes
| amounting to probably less than S6,09o,000
| might be supplied by such gold would be
used on their retirement by an increase In
| irregulation of our Nat iona1 banks. Though
the aggreg ate capital of these now IN existence
amounts to more than $3.50 ,0J0 their out
| standing circulation based bond security
amounts to only about $I90O00,0O0. They are
authorized to issue notes amounting 10 ninety
per cent of the bonds deposited to secure their
| circulation, but in event beyond the amount
OF their capital stock they are obliged to pay
one per cent tax on the circulation they issue.
| think they ought to be allowed TO issue cir
| culation equal to the par value of the bonds
they deposit to secure 1t, and that the tax on
their circulation should be reduced to 5ns-
fourth OF one per cent, which would untfcrsft-=
edly meet all the expenses the Cover nrnen=
| would incur their account. In addiflar
they should be allowed to substitute or ieposft
| IN lieu OF the bonds now required as sectzrSk7
for their circulation those which would IA -
| sued for the purpose of retiring the United
S&nfa