The Forrest City times. [volume] (Forrest City, Ark.) 1871-1919, 1895-12-06

ioolsh purNeNor OF gold for nations abroad or
ior speculation and boarding by our citizens at
home. should expect TO see gold resume its
natural and normal functions in the business
ahalrs OF the country, and cease 70 be an object
attr&sting the timid watch OF our people and
exciting their sensitive imagination.
THE SILVER sEIGNIoRAGE.
do not overlook the fact that the caucella-
.ioh OF the treasury notes issued under the sill
Ner-purchaSing act OF 1890 would leave the
treasury in the actual ownership OF SUFFICIENT
SILVER, including seigsioruge, to coin near
y elio,VIo,VO0 IN standard dollars. 1t
- worthy OF consideration whether
this might not, from time to time.
DC converted into dollars or fractional coin
ana slowly put into circulation, as in the iudR-
nent of the secretary of the treasury, the
necessities of she country should require.
NOT QUESTION OF QUANTITY, BUT KIND.
In the present stage OF our difficulty il is not
easy to understand the extent to which our
revenue receipts directly Affects it, The i'm
portant question Is not the quantity OF money
received IN revenue payments. but the kind of
money We maintain and our ability to continue
IN sound financial condition. We are consid-
erlng the government holding OF gold as re-
lated TO the soundnesS ana as affecting
our national credit and our monetary
strength. If our gold reserve had never been
impaired; II no bonds had been issued to re-
pIehlsni II there had been no fear and timdity
concerning our ability To continue gold pay
ment II any part of our revenues were now
PAID IN gold, and If we could look to our gold
receipts as means Of maintaining a safe re-
serve, tho amount Of our reyen les would be an
influential factor in the problem. But, unfor-
tunately all the circuIns tances that might lend
weight TO this consideration are entirely lack
/ ing. Ia our present predicament no gold is re-
eeiVed by the government IN payment OF reve-
nue Charges nor would there be IL he revenues
were increased. The receipts OF the treasury,
Mhch not IN SILVER eertlneateS, consist of
United states notes and treasury notes issued
Tor silver purchases. These forms Of money are
only useful TO the government in paying its cur
rent ordinary expenses, and its quantity
IN government possession does not in the least
contribute toward giving US that kind of safe
financial standing OF condition which is built
on gold alone II it is said that those notes il
held by the government can be used TO obtain
gold Tor our reserve, the answer is easy. The
people draw gold from the treasury on demand
upon United states notes and treasury notes,
but the proposition that the treasury can on
demand draw gold from the people upon them
would be regarded in these days with wonder
ana amusement, and even If this could be done
there Is nothing TO prevent those thus parting
with their gold from regaining it by the next
DAY or the next hour by the presentation of the
notes they received in exchange for it.
The secretary OF the treasury might use such
notes taken from a surplus revenue to buy
gold in the market. OF course he couId not do
| this without paying premium. Private hold
erS OF gold, unlike the government, having no
parity TO maintain, would not be restrained
from making the best bargain possible when
they furnished gold to the treasury: but the
moment the secretary OF the treasury bought
gold on any terms above par, he would eStab-
fish general and universal premium upon it,
thus breaking down the parity between gold
and silver. which the government is pledged to
i"tiiNHAiAf anu bl~At44B INC way " nCN anu
serious complications,
In the meantime the premium would not re-
main stationary and the absurd spectacle
might be presented Of dealer selling gold to
the government and with United States notes
or treasury notes in his hand Immediately
clamoring for It's return and u resale at
higher premium 1t may be claimed that
large revenue and reduced receipts might
favorably affect the situation under discussion
by alording an opportunity of retaining these
notes In the treasury when received, and thus
preventing their presentation for gold.
Such retention TO be useful ought TO be at
least measuraDly permanent, and this is pre-
eisely what is prohibited so far as United
States notes are concerned by the law of 1873
forbidding their future retirement
NO FEARS OF OUR soLvENoY.
Perhaps it is supposed that sufficient revenue
receipts would, in a sentimental way, improve
the situation by inspiring confidence in our
solyency and allaying the fear of pecuniary
exhaustion, and yet all through our struggle TO
maintain our gold reserve there never has been
any apprehension as to our ready ability TO pay
our way with such money as we had, and the
question whether or not our current receipts
met our current expenses entered into the es-
innate of our so.Veucy. OF course the general
state of our funds, exclusive of gold, was eu-
tirely immateria to the foreign creditor and
investor His debt could only be paid in gold,
and his only concern was our ability to keep
on hand that kind of money.
On July /, 1892, more than q year and q half
before the first bonds were issued, to repl nish
the gold reserve there was net balance in the
treasury, exclusive OF such reserve, of less
to more than ST. 100000, which was the quiet
ing feature of the situation. 1t was when the
stock of gold began rapidly to fall that fright
supervened and our securities held abroad
were returned for sale, and debts owed abroad
were pressed for payment In the meantime
extensive shipments of gold and other I'M
favorable indications caused reStleSSneSS and
fright among our people at home
THE BOARDING OF GOLD.
Thereupon the general state Of our funds,
exclusive of gold became also immaterial to
them and they too, drew gold from the treas
ury for boarding against all contingencies.
This is plainly shown by the large Increase in
the proportion of gold Withdrawn which was
retained by our own people as time and threat
ening incidents progressed. During the fiscal
year ending June 80, 1891, nearly SIS, 100000 in
gold was Withdrawn from the treasury and
about 81 600 was sent abroad while during
the fiscal year ending June 30, 1895, over $ll7,-
100000 was drawn out, of which only $3.50 10000
was shipped, leaving a large balance OF such
Withdrawals TO be accounted for by domestic
boarding
PLENTY OF MONEY FOR CURRENT EXPENSES.
AT no time when bonds have been issued has
there been any consideration of the question of
paying the expenses of the government with
their proceeds. There was no necessity to con-
slider that question. At the time of each bond
issue we had safe surplus in the treasury for
ordinary operations exclusive OF the gold in
our reserves In February. 1894, when the first
issue OF our bonds was made such surplus
amounted TO over SlS00O,0OO. In November,
when the second issue was made. II amounted
to over S42.000000, and in February, 1895, when
bonds for the third time were issued, such sur
plus amonted 10 more than Sl00000,000 1t now
amounts to f9S ,072. 030
Besides ali this the secretary OF the treasury
had no authority whatever to issue bonds 10
increase the ordinary revenue or pay current
expenses. can not but think there has been
some confusion OF ideas regarding the effects
of the issue of bonds and the results OF Gne
withdrawal of gold. IL was the latter process
and not the former that by substituting in the
treasury UuIted states notes and treasury
notes for GOLD Increased by their amount the
money which was in ne first instance subject
to ordinary COVE rnment expenditure.
WHEN THE WITHDRAWALS BEGAN.
Although the Law compelling an increased
purchase OF silver by the government was
{ r,oeca4 ,u fba f4fh d9V Df Fulg IH{al with