Democratic Northwest and Henry County news. [volume] (Napoleon, O. [Ohio]) 1894-1905, 1895-12-12


In view Of this declaration II was
not deened permissible for the score
tary OF the treasury TO exercise the dis
cretion IN terms conferred on him oy
refusing TO pay gold on these notes
when demanded. because by such dis
crimtnation in favor Of the gold dollar
the so-called parity Of the two metals
would be destroyed and grave ana
dangerous consequences would be pre-
ctpitated by affirming or aecentuating
the constantly widening disparity be
tween thefr actual values under the
existing rates.
1t thus resulted that the treasury
notes issued IN payment OF silver pur-
! chases under the law Of 1890 were nee
e3sartly treated as gold obligations at
the option Of the holder. These notes
on the las. day OF November. 1850,
when the law compelling the monthly
purchase OF silver was repealed,
amounted to more than $155. .000. 900.
The notes o' this description now out
standing. added to the United States
notes stll undlmin4shed by redemp-
tton or consolation. constitute a col
umn OF gold obligations amounting to
$500 100000. These obligations are the
instruments which ever since we have
had gold reserve have been used to
deplete H.
Fifty millions Of these bonds were
sold. yielding s5S,633.2s5, which was
| added to the reserve fund Of gold then
on hand. AS q result of this operation
this reserve, which had suffered con-
! slant and .arge Withdrawals in the
meantime. stood on the 9th day Of
March, 1894, at the sum Of $1O7, ,446,Se2
| Its depletion was. however, immediate
| ly thereafter so accelerated that on the
| Goth day OF June, 1894, II had fallen to
s64,SI3, OBS thus losing by Withdrawals
more than $4,000, 900 in five months and
dropping slightly below its situation
when the sale Of $50, 100000 in bonds
| was effected for Its replenishment.
This depressed condition grew worse
and on the 24th day OF November, 1894,
our gold reserve, being reduced to $751;
| 669, ,701, Ii became necessary to again
| strengthen It, This was done by an
other sale Of bonds, amounting to $780,
900, 900. from which there was realized
| s5S, 53S, 800 with which the fund was in
creased to Sill, ,021 on the 4th day Of
December, 1894
| Again Disappointment awaited the
anxious hope for relief. There was not
| even a lull In the exasperating with
| drawals of gold. On the contrary, they
| grew larger and more persistent than
| ever. Between the 4th day of Decem-
Der, 1894, and early in February, 1895,
a period of scarcely more than two
months after the second reinforcement
| OF our gold reserve by the sale of
bonds. 1t had lost by such Withdrawals
more than $6s,O00,000, and had fallen
to $41, ,340,181.
In this emergency and in view Of Its
surrounding perplexities. 1t became en-
| nrely apparent to those upon whom
the struggle for safety was devolved
not only that our gold reserve must
for the 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 than those realized on previous
| sales. An agreement was, therefore,
| made with number of financiers and
bankers whereby it was stipulated
| that bonds described in the resumption
act OF 1875, payable in coin thirty
years after their date, bearing inter-
est at the rate of per cent. per annum
and amounting to about $4,000, 900,
should be exchanged for gold, receiva-
BILE by weight, amounting to a little
more than $65,OO0,0O0.
This gold was to be delivered In such
installments as would complete its {
| livery within about six months fro.
| the date of the contract. and at least
| one-half of the amount was to be fur
nished from abroad. 1t was also agreed
by those supplying this gold that DUR
ing the continuance of the contract
they would by every means In their
power protect the government against
gold Withdrawals. The contract also
provided that If congress would au-
thorize their issue, bonds payable by
their terms in gold and bearing inter-
est at the rate Of per cent. per annum
might within ten days be substituted
at par for the 4 per cent. bonds de-
scrlbed in the agreement.
On the day this contract was made
it's terms were communicated to con-
gress by special executive message, In
which it 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 con-
gress having declined to grant the
necessary authority to secure this saw
ing, the contract, unmodified, was car.
ried out, resulting in a gold reserve
amounting to SLOT, j77, 230 on the sth
day of July, 1895. The performance of
this contract not only restored the re-
serve, but checked for a time the with
drawals Of gold and brought on a
period Of restored confidence and such
peace and quiet in business circles as
were of the greatest possible value to
every interest 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 ansN er for my full
share of responsibility for it's promo
| tion / believe it averted a disaster.
the imminence of which was fortunate
ly not at the time generally under
stood by our people. Though the con-
tract mentioned stayed for a time the
tide of gold Withdrawals its good re-
suits could not be permanent.
On the 2Sth of January, 1895, it was
reported by the. secretary of the treas
ury that more than $172, 1000, 900 of gold
had been withdrawn for boarding or
shipment during the year preceding.
He now reports that from January l,
1879, to July IA, 1890. a period of more
s2S, 600 900 was withdrawn, and that be-
tween July IA, 1890, the date of the pas
sage of the law for an increased pur-
chase of silver, and the 1st day of De-
cember, 1895, or within less than five
| and one-half years, there was with
drawn nearly $375, 600, 900, making a to-
tai of more than $403, 900, 900 drawn from
) the treasury in gold since January l.
1879, the date fixed in 1875 for the retire
ment of the United States notes.
Nearly 1927 ,O00O 900 Of the gold thus
Withdrawn has been paid on these Unit
ed States notes, and yet every one OF
the SS46, 100000 is still uncancelled, and
ready to do service in future gold de-
pletions More than $76,00O,0O0 in gold
has, since their creation in 1890, been
paid out from the treasury on the notes
given on the purchase of silver by the
government; and yet the whole
amounting to $155,000,O00, except little
more than $16,OOoOOO which have been
retired by exchange for silver at the re-
quest of the holders, remains outstand.
; ing and prepared to join their older and
more experienced allies in future raids
J J upon the treasury gold reserve.
1t has always seemed to me that the