People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1895-12-05

been provided. The government was
put in the anomalous situation Of owing
to the holders of its notes payable in
gold on demand which could neither be
retired by receiving such notes in dis
charge Of obligations due the govern
ment nor cancelled by actual payment
in gold. 1t was forced to redeem with
out redemption and to pay without ac-
quittance
ITS FIRST TUMBLE.
There has been issued and sold $95, 900
900 of the bonds authorizd by the resum
ption act Of 1878. The proceeds OF which
together with other gold in the treas
Ury created a gold fund deemed sufIic-
lent to meet the demands which might
be made upon it for the redemption Of
the outstanding United States notes.
This fund together with such other
gold as might be from time to time in
the treasury available for the same pur-
pose has been since called our gold re-
serve and $lOOOOO,OOO has been regarded
as an adequate amount to accomplish
its object. This fund amounted the last
day OF aJnUary, 1878, to Sll4196, 1876 and
though thereafter constantly fuctuat-
ing. it did not fall below that sum in
July 1892. In April 1893 for the first
time since its establishment this re-
serve amounted to less than $lOO,OOO,OOO
containing at that day only S97,Oll 800
in the meantime, 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 be issued payable on de-
mand in gold or silver coin at the discre-
ton Of the secretary Of the treasury. 1t
was, however, declared in the act to be
the established policy Of the United
States to maintain the two on a parity
with each other upon the present legal
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 to exercise the discre-
ton in terms conferred on him by re-
fusing to pay gold on 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 will be precipitated or
accentuating the 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-
sarily treated as gold obligations at the
option Of the holder. Holders Of these
notes on the first day of November 1893.
when the law compelling the monthly
purchase Of silver was repealed amount
ed to more than Sl55, 100000 the notes Of
this description now outstanding added
to the United States notes still undimin-
ished by redemption or cancellation
constituted a volume of gold obliga-
tons amounting to nearly $5OO,OOO 900.
These obligations are the instruments
which ever since We have had a gold
reserve have been used to deplete it.
CAUSE OF SHRINKAGE
This reserve, as has been stated. had
fallen in April 1898 to 1901 1870. 1t has
from that time to the present, with
every few and important movements.
steadily decreased except as it has been
temporarily replenished by the sale of
bonds. Among the causes for this
constant and uniform shrinkage in this
fund may be mentioned the falling off
of exports under the operation of the
tariff law until recently in force, which
crippled our exchange Of commodities
with foreign nations and necessitated
To some extent the payment of our bal
ances in gold; the unnatural infusion
of silver into our currency and the in
crease in agitation for its free and I'M
limited coinage which have created ap-
prehensiOn as to our disposition or abb
lily to continue gold payments; the con-
zSaHlsnt boarding of gold at home and
capital as wess, - l.s..sf Sarern
curities already sold abroad aid-4 a.
high rate Of foreign exchange which in
duced the shipment of our gold to be
drawn against us as matter of specu-
lation. In consequence of these condi-
tons the gold reserve on the first dav
of February 1894 was reduced to sos
1887 having lost more than $31 900. 900
during the preceding nine months or
since April 1898 its replenishment being
necessary and no other manner Of ac-
comprising it being possible resort
was had to the issue and sale of bonds
provided for by the resumption act of
1898. Fifty millions Of these bonds were
sold, yielding SjS633 ,295.72. which was
added to the reserve fund of gold then
on hand. As a result of this operation
TINS reserve, which had suffered con-
slant and large Withdrawals in the
meantime, stood on the 9Th day of
March 1894, at the sum of $lO7. 6.SO2.
us depletion was however, Immediately
thereafter So accelerated that on the
"Oth day Of June. 1894. it had fallen to
$5i,Sl5,O25, thus losing by Withdrawals
more than A2,OOO,OOO in five months and
dropping slightly below its former situa
lion when the sale of S5O,OOO.OOO 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 $685.
OOl.
ISSUING MORE BONDS.
1t became necessary to again strength
en- it. This was done by another sale Of
bonds amounting to $5O.OOO.OOO from
which there was realized S5S.5SS. 500
with which the fund was increased to
Slll,Ol222l, 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
uraWalS Of gold. On the contrary. they
grew larger and more persistent than
ever Between the 4th day Of Deem
ber 1894 and early in February 1895, a
period of scarcely more than two
months after the second reinforcement
OF cur gold reserve by the sale Of bonds
It had lost by such withdrawals more
than S69OOO,0O0 and had fallen to 81
5iOlSl, and nearly S4S,0OO.OOO had been
Withdrawn within the month immediate
~ preceding this situation. In antici-
pduon OF impending trObule, | had on
the 18th day of January, 1895, addressed
n communication to the congress fully
setting forth our difficulties and dan
gerous position, and earnestly recon-
mended that authority be given the sec
rotary Of the treasury to issue bonds
bearing a low rate of interest, payable
by their terms in gold, for the purpose
OF maintaining sufficient gold reserve
and also for the redemption and cam
collation. Of outstanding United States
notes and the treasury notes issued for
the purchase of silver under the law of
iSSO. This recommendation did not.
however, meet with the legislative ap-
proval.
RETIRE GREENBACKS.