The Dickinson press., 1895-12-07

sufficient to meet the demands which might be
% i%e t,n nI%s !! states fSs the eo sesemp!TIS S'. Of as sGe G ,Sss,Rs;
with such other gold as might he from time to
time in the treasury available for the snme
and $780, COO. 900 has been regarded ms an AIDE.
gIate amount to accomplish its object. This
to $114. 103, 36O. and though thereafter constant
~ fiuctuatinR. 1t did not fall below that sum un-
til July. 1esz: In April. 1893, for the first time
since its establishment this reserve amounted to
less than 500. 900. 600, containing at that date
only sy7. oil BIO.
In the meanwhile. and In July. 1890. an act
monthly purchases Of silver than had been re-
Iuirel under previous laws. and providing that
in payment for such silver TREASURY notes Of the
United States should he issued. payable on de-
the secretary OF the treasury. 1t was. however.
declared. In the act to he 1.-The established policy
Of the United States to maintain the two metals
on Il parity with each other upon the present
legal rnt'o or such ratio as may Ike provided by
Really Gold Obllgations.
In view Of this declaration 1t was not deemed
permissible for the secretary Of the treasury ia
by refusing to pay gold on these notes, when de-
malicd. because by such discrimination In favor
Of the gold dollar, the so-c.lll.i parity OF the two
metals would he destroyed and grave and dan
gerous. consequences would be Irccipitated by
aNEning az nccentunting the constantly widening
rAfHl39tty between their actual values under the
S6fkllne rite.
EaaFlEJ resulted that the treasury notes issued
- o4Aent Of silver purchases under the law OF
9Ra91lgscpt!n - . me holder. These noteess, 0S
E33fEk1t Gay OF November, 1891. when the law
Z 0b&ting the monthly purchase Of silver was
rN9peale1. smmntch to more than $i5s.ooo ;goe.
added to the United States notes eth undimin-
ished by redemption or cancellation: constitute n
$5Np. 900. 400. These obligations are the instru-
ments which. ever since we have had a gold re-
serve, have been used to deplete It,.
April. 1893. to $97, OH $50. 1t has from that
time to the present, with very few and Inim-
portnnt upward movements. steIdliy decFensed; fx,
the sale Of bonds.
Among the causes for this constant and uniform
shrinknge In this fund may he mentioned the
great falling on Of exports under the operation of
the tariff law until recently In force, which Grip
pied our exchange of commodities with foreign
nations and neccssitatrd. to some extent. the
payment Of our balances in gold. the unnatural
infusion Of silver Into our currency and the In.
creasing agitation for its free aud unlimited
coinage. which have created apprehension us to
our disposition or ability to continue gold pay
ments: the consequent hoarding Of gold ut home
IL, rs well as the return Of our securities nj
ready sold abroad. and the high rate OF foreign
exchange. which induced the shipment of our
gold to be drawn against as a matter Of specula-
tiOn.
The Bond Issues.
III consequence OF tnCSe chnulIlNuS, lIe eOlu re.
serve on Feb. i, 1894, was reduced to SOS. 43s, a77.
having last mere than S3l. 600, 900 during the pre-
ccding nine months. or since Arril, 1898. Its re-
rlcnislInrnt being necessary. and no other manner
If accomplishing 1t being possible. resort was had to
the Issue and sale Of l4m,!s, provided for by the re.
%v Ws4a s",a n't y Gf aSns: s SIS. Ss % ,sns. Il. OF W vice. 09 %as
ss"a a result IS !. Of this operation s@st N iii reserve y Which Shia;
the meantime. stood. on March 6, 1894, at the sum
Of S1O7. S02. It's depletion WIS. however, i'm
thereafter 80 nccclerated that, on June
30, 1891. 1t had fallen to $64 ,S73. OPS, thus losing
by Withdrawals more than $42.O 900, 900 in FIVE
months and dropping slightly below It's situation
when the sale Of $50, OoO, 600 in bonds was effect
ed for its replenislhnrnt.
This depressed condition grew worse. and on the
9th day Of N%ovcmhrr. 1894, our gold reserve be-
again strengthen 1t. This was done by another is
sue Of bonds. amounting to $50. OoO. 900, from
which there was realized : S:5?s.5 900. with which
the fund was increased to Sill. 142, OIL, on the 4th
day Of December, 1884.
Again Disappointment awaited the anxious hope
peratine Withdrawals Of gold. On the contrary,
they grew larger and more persistent than ever.
Between the 18th day of December, 1894, and early
in February, 1895, Il period of scarcity more than
two months after the second reinforcement Of the
gold reserve by. the sale of lnmls. 1t had lost by
s saiien w to sai :sio. 1s Mofe N ,' \ ~ sis 1880 ssS. sSS h and n asa
withdrawn within the month Immediately proceed.
ing this situation.
The Bond Deal,
In anticipation of impending trouble, l had on
the 2Sth day Of january, 1873, addressed a com.
m,lnication to congress, fully setting. forth our
difficulties and dangerous position and earnestly
recommending That authority I've given the secre-
tary of the TREASURY to issue bonds hearing Il low
rate of interest. payable by their terms in gold.
for the purpose Of maintaining a sufficient gold
reserve, aud also for the redemption and cancel.
lation Of outstanding United States notes and the
treasury notes issued for the purchase Of silver
under tlA law Of 1870. This recommendation did
not, however, meet with legislative approval.
In February, 1875. therefore, the situation was
exceedingly critical. With u reserve ,lerilously
thing indicated that the end Of gold payments by
the government was imminent. The results of
prior bond issues had been exceedingly ~unsatis-
factory and the large Withdrawals Of gold i'm
nediately succeeding their public sale in open
market gave rise to n reasonable suspicion that
a urge part of the gold paid into the treasury
by the presentation Of United States notes or
treasury = notes. and found its way into the hands
IN the purchase Of bonds.
In this emergency. and in view Of its surround.
ING perplexlty, 1t became entirely apparent ia
those upon whom the struggle for safety was de,
VOWED not only that our gold reserve must, 70.
the third time in less than thirteen months, be
restored by another issue and sale Of bonds bear.
Ing q nigh rate OF interest and badly suited to
the purpose, but that n plan must be adopted fol
tneir disposition promising better results thar
was therefore made with u number of financierf
and bankers whereby it was stipulated that
bonds described in the resumption net Of 1876
payable In coin thirty years after their date,
bearing interest ut the rate of 4 per cent pei
shan1a no and a9c,a amounting IT, to about S.;
s a%ouat Ie et to a iifala for m gold , TeSei x;;I eo6 ~ o weight
This gold was to he delivered in such install
ments us would complete its delivery within
tract. and at least onc.half Of the amount wal
to ne furnished from abroad. 1t was also agreed
~ those supplying this gold that during the con
means In their power, protect the government
against gold withdrawals.
Ihe contract also provided that If congress
~ouid authorize their issue, bonds payable by
their terms. In gold, and hearing interest at the
rate tan , OF . per cent per annum. might, within
cent bonds described in the agreement. On the
day TINS contract was made its terms were com.
messeao T. to D.. congress by n special executive
o.Oy0 ooO would be saved to the government.
If gold bonds, bearing :; per cent interest, were
authorized to be substituted for those mentioned
Congress having determined to grant the neces.
s sadSt a 1aisai,s to secure this saving. the con.
18Th day Of July. 1895. The performance Of this
c cSntEsG 81, not ! only only re- restored the reserve, but
Drought on a period of restored confidence aud
snch peace and quiet in business circles us were
Of the grentest possible value to every interest
slightest misgilving concerning the >wislom or
propriety Of this arrangement, and am quite Will
20 WI Ay ANlk tAk VI
for its promotion.
l believe 1t avertcd a disaster, the imminence
OF which was fortunately not at the time gen.
erally understood by our people.
Not a Permanent Relief.
Though the contract mentioned stnid for q
time the tide of gold withdrawals, Its good re.
suits could not be permanent. Recent withdraw.
ais have reduced the reserve from $107 ,557 23C
on the 9Th day of July, 1885,, to SIC, 333, 968
How long its will remain large enough to render
is increase unnecessary. Is only n matter Of
conjecture, though quite large Withdrawals FOL
ehipment In the immediate future are predicted
IN weli-info.med quarters. About SIG. O0O. 600 has
been withdrawn In the month Of November.
The foregoing statement of events and condi
lions develops the fact that after increasing cul
tnterest-bearing bonded Indebtedness more thar
$1G2. OOO. QUO to save our gold reserve, we are
nearly where we started, having now in such re-
serve $!N.333. 9f6. as against So. i3s,:i77 in Feb
Though the amount of gold. drawn from thu
from the facts and figures herein presented. II
actually WINS much larger, considerable sumt
having been acquired by the treasury within thu
several periods stated. without the issue Of
bonds.
On the 2Sth Of January, 1895. It was reported
by the secretary of the treasury that more thai
STE. 900. OO0 of gold had been Withdrawn fo
boarding or shipment during the year preceding
He now reports that from January l, 1879, t.
July IA, 1890. u period Of more than clever
years. only a little over SIS. 900. 900 was with
drawn, and that between July IA. 1880. the dat,
Of the passage Of the law for nn Increased pur
chase OF silver, and the first day of December
1895. or within less than five and a half years