The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-12-04
GOLD RESERVE STRUGGLES.

In Nav. 1873, and before the date thus
,nnoirted for the redemption and re-
tfreroent Of these notes, another statute
was passed forbidding their further can
collation. and retirement. Some OF
them had, however. been previously re-
deemed and cancelled upon the issue OF
additional national bank circulaloh' as
permitted by the law of 1915, sa that the
amount outstanding at the time OF Inc
passage Of the act forbiddlng thelr LuI-
their retirement was 1851, 6S1 ,0l6. The
la,,- Of 1878 did not stop at distinct pro-
hibiticn but contained in addition, the
following provision land when any OF
said notes may be redeemed or be re
reived into the trea sury under any law,
from any source whatever, and, snail
belong to the United States they snail
not be retired, cancelled or destroyed.
but they shall be re-issued and PAID out
AGAIN and kept in circulation rms
was the condition Of affairs on the lst
day of January, 1879 which had been
fixed upon four years before as the
date for entering upon the redemption
and retirement of all these notes ana
for which such abundant means had
been provided. Tne government was
put in the anomalous situation or owing
10 the holders Of its notes payable in
retired by receiving such notes in dis
charge Of OBLIGATIONS due the govern
y7qe7qt nor cancelled by actual payment
in gold. II was forced to redeem with
cut redemption and 10 pay without ac-
quitt2nce.
IT'S FIRST TUMBLE.
There has been issued and sold $4,000
COO Of the bonds AUTHORIZED by the resum
ption act Of 1870. The proceeds of which
together with other gold in the treas
ury created a gold fund deemed suffic-
lent 10 meet the demands which might
Se made upon il for the redemption of
the outstanding United States notes.
This fund together with such other
gold as might be from time 10 time in
the treasury available for the same pur-
pose has been since called our gold re-
serve and 500. 600 900 has been regarded
as an adequate amount to accomplish
ats object. This fund amounted the last
day Of January, 1873, to sli4.196.1S6 and
though thereafter constantly fluctuat-
ing. ii did not fall below that sum in
July 1892 In April 1898 for the first
tine since it's establishment this re-
serve amounted To less than 500. 600 600
containing at that day only S97.0l1.330
in the mea ntime. In July 1890, an act had
been passed directing larger govern
mental monthly purchases Of silver
than had been required under previous
laws and providing that in payment for
silver treasury notes of the United
States should he issued payable on de-
rnarid IN gold or silver coin at the discre-
ton of the secretary of the treasury. II
was, however declared in the act 10 be
the established policy Of the United
States 70 maintain the two on a parity
F-sv
ratio or such ratio as may be provided
by law.
In view OF this declaration it was not
deemed permissible for the secretary
Of the treasury 10 exercise the discre-
ton in terms conferred on him by re-
fusing TO pay gold or these notes when
demanded because by such discrimina-
ton in favor Of the gold dollar. the so
called parity OF the two metals would
be destroyed and grave and dangerous
consequences viii be precipitated or
eccentuating she constantly widening
disparity between their actual value I'M
der the existing ratio.
1t thus resulted that the treasury
notes issued in payment Of silver pur-
chases under the law Of 1890 were neces-
s2rily treated as gold obligations at the
option of the holder. Holders of these
notes on the first day or November 1898.
when the law compelling the monthly
purchase Of sIlve- was repealed amount
ell 10 more than 1855. 0o0 600 the notes Of
this description now outstanding added
40 the United States notes stiIl undimin-
iShed by redemption or csncslla ton
constituted a volume OF gold obliSa-
tons amounting 10 nearly $500 600. goo.
These obligations are the ins;rumeat IS
which ever since we have had a gold
reserve have been used 20 depiete il.