The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1895-12-12

~ boildS-
THE BOND SYNDICATE DEAL.
In this emergency and In view of its
surrounding perplexlties, II became en-
tireiy apparent to those upon whom
the struggle for safety devolved, not
ohiS Una. our gold reserve must. for
che third time in less than thirteen
months, be restored by another issue
and sale of bonds bearing a high rate
OF interest and badly suited to the pur-
pose, but that plan must be adopted
for their disposition promising better
results tran those realized on previous
sales. An agreement was therefore
made with a number of financlers and
bankers. whereby 1t was stipulated that
| bonds described in the RESUMPTION act
| OF 1875. payable In coin thirty years af-
ter their date. bearing interest at the
rate OF per cent per ga annum and
be exchanged for gold, receiva-
BILE by weight. amounting to a
| little more than SGT, 100000. This
| gold was to be delivered in
such installments as would complete
its delivery within about six months
from the date of the contract. and at
least one-half of the amount was to be
furnished from abroad 1t was also
agreed by those supplying this gold
that during the continuance of the con-
tract they would by every means In
their power protect the Government
against gold Withdrawals. The con-
tract also provided that If Congress-
would authorize their issue, bonds paw
able by their terms in gold and bearing
interest at the rate of per cent per
annum might within ten days be sub
stituted at par for tho per cent bonds
described in the agreement.
On the day this contract was made
Its terms were communicated to Con-
gress by special executive message,
In which 1t was stated that more than
sixteen millions of dollars would be
saved to the Government If gold bonds
bearing per cent interest were au-
thorized to be substituted for those
mentioned in the contract
The Congress declined to grant the
necessary authority to secure this saw
ing. the contract unmodifled was car
ried out. resulting in a gold reserve
amounting to $l07 81, $3.50 on the Sth day
or July. 1895. The performance of this
contract not only restored the reserve,
put checked for time the withdrawal
OF gold and brought on a period of
restored confidence and such peace and
quiet in business circles as were of the
greatest possible benefit in every in
terest that affects our people.
/ have never had the slightest mis-
giving concerning the wisdom or pro-
priety of this arrangement and am
quite willing to answer for my full
share of responsibility for its promo
ton. l believe 1t averted a disaster.
the imminence of which was Fortunate
ly not at the time generally understood
by our people.
SHOULD RETIRE THE GREEN
BACKS.
l am convinced the only thorough
ana practical remedy for our troubles
Is found In the retirement and cancel
iatlon of our United States notes, COM
monty called greenbacks, and the out
standing treasury notes issued by the
Government In payment of silver pur-
chases under the act of 1890. l believe
this could be quite readily accom-
plished by the exchange of these notes
Tor 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 be-
cause their payment could be well
postponed to a period far removed
from present financial burdens and per-
plexlties. when, with increased pros
perity and resources, they could be
more easily met. To Insure the can
collation. of these notes and also pro-
vide way by which gold may be add
ed to our currency in lieu of them.
a feature In the plan should be an au-
thority given to the Secretary of the
treasury to dispose of the bonds
abroad for gold, If necessary to COM
plete 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
VOWED In this plan would be amply |
compensated by renewed activity and
enterprise In all business circles. The
restored confidence at home, the REIN
stated faith in our monetary strength
abroad and the stimulation oe every in
terest and industry would follow the |
cancellation of the gold demand obli- |
cations now affecting us.
In any event. the bonds proposed |
would stand for the extlnguishment OF |
q troublesome Indebtedness while in |
the path we now follow there turks the |
menace OF amending bonds with our in |
debtedness stlll undischarged and az
gravated In every feature.
The obligations necessary to FIND
this Indebtedness would not equal in |
amount those from which we have
been relieved since 1884 by anticipation |
and payment by the requirements OF |
the sinking fund out of our surplus
revenues. |
NIGHT COIN SOME SILVER.
l do not overlook the fact that the
cancellation Of the treasury notes is
sued under the silver purchasing act
OF 1890 would leave the treasury In the
actual ownership of sufficient silver.
including seignorage, to coin nearly
M7S,OOO,OOO In standard dollars. 1t is
worthy of consideration whether this
might not, from time to time, be con-
ua- tn1 Int. n a11o
| and slowly put into circulation as in
the Judgment Of the Secretary of the
Treasury the necessities of the country
should require.
Whatever Is attempted should be en-
tered upon fully approaching the fact
that by careless, easy descent we have
reached q dangerous depth, and that
our ascent will not be accomplished
without laborious toll and struggle. We
shall be wise II we realize that we are
| financially Ill and that our restoration
to health may require heroic treatment
and unpleasant remedies.
REVENUES CUT NO FIGURE.
In the present stage Of our difficulty
1t Is not easy to understand how the
| amount of our revenue receipts directly
affects 1t. The important question is
not the quantity of money received in
| revenue payments, but the kind OF
money we maintain and our ability to
continue sound financial condition. We
are considering the Governments hold
ings of gold, as related to the sound
ness of our money and as affecting our
national credit and monetary strength.
If our gold reserve had never been i'm
paired. or If no bonds had ever been
issued to replenish It. If there had been
no fear and timidity concerning our
ability to continue gold payment, II
any part of our revenues were not
paid In gold, and If we could look to
our gold receipts as means of main
tanning a safe reserve, the amount of
our revenues would be an influential
factor In the problem, but unfortunate
~ all the circumstances that might
lend weight to this consideration are
entirely lacking. In our present pre-