Bennington semi-weekly banner. (Bennington, Vt.) 1894-1902, 1895-12-03

thai we approach a subject of domestic con-
Germ more important than any other that can
engage our attention, and one at present in
SUCH perplexing and delicate predicament as
to require prompt and wise treatment.
We may well be encouraged to earnest effort
in this direction when we recall the steps al
ready taken toward improving our economic
and financial situation and when we appre-
ciate how well the way has been prepared for
further progress by an aroused and intelligent
popular interest in these subjects.
The compulsory purchase and coinage of sill
yer by the government, unchecked and un.
regulated by business conditions and needless
of our currency needs, which for more than Is
years diluted our circulating medium, under
mined confidence abroad in our financial abil-
ity, and at last eliminated in distress and
panic at home, has been recently stopped by
the repeal of 5he law which forced this reck
less scheme upon the country.
The things thus accomplished, notwithstand
ing their extreme Importance and benefcent
effects fall far short Of curing the monetary
evils from which we suffer as IA result of long
indulgence in ill-advised financial expedients
The currency denOminated United States
notes and commonly known as greGnDaclls was
issued in large volume during the late civil
war, and was intended originally to meet the
exigencies Of that period. 1t will be seen by d
reference to the debates in congress at tho
time the laws were passed authorizing the
issue Of these notes that their advocates de
clared they Were intended for only temporary
use and to meet the emergency of war. In al
most if not all the laws relating to them some
provision was made contemplating their volun
tary or compulsory retirement. Alarge guam
tty Of them, however, were kept on foot and
mingled with the currency of the country, so
that at the close of the year 1874 they amounted
to 1881 ,0J9O1j.
Immediately after that date, and in January
1885, law was passed providing for the re-
sumption of specie payments by which the
secretary of the treasury was required, when
ever additional circulation was issued to re-
quire national banks to retire United States
notes equal in amount to 50 per cent of such
additional national bank circulation until such
notes were reduced to SjUOOJO,OOO. This law
further provided that on and after Jan. l.
1879, the United States notes then outstanding
should be redeemed in coin, and in order to
provide and prepare for such redemption the
secretary of the treasury was authorized not
only to use any surplus revenues of the gov
eminent, but to issue bonds Of the United
States and dispose of them for CON- and to use
the proceeds for the purpose contemplated by
the statute.
In May 1878, and before the date thus APP
pointed for the redemption and retirement Of
these notes, another statute was passed for
bidding their further cancellation and retire
ment. Some of them had, however been pre-
viouSly redeemed and cancelled upon the issue
of additional national bank circulation, as per-
mitteG by the law of 1915, SO that the amount
outstanding at the time OF the passage of the
act forbidding their further retirement was
$346,6SlOlG.
The law of 1875 did not stop at distinct prohi-
bition, but contained, in addition, the follow
ing express provision:
And when any Of said notes may be re-
deemed or be received into the treasury, under
any law, from any source whatever, and shall
belong to the United States, they shall not be
retired cancelled or destroyed, but they shall
be reissued and paid out again and kept in
circulation"
This was the condition of affairs on Jan /,
1879, which had been fixed upon four years be-
fore as the date tor entering upon the redemp-
ton and retirement of all these notes, and for
which such abundant means had been pro
vided. The government was put in the anon
alous situation of owing to the holders of its
notes debts payable IN gold on demand, which
could neither be retired by receiving such
notes in discharge Of obligations due the gov
ernment nor cancelled by actual payment in
gold.
1t was forced to redeem without redemption,
and to pay without acquittance. There had
been issued and sold &5,50J,OOO of the bonds
authorized by the redemption act of 1875, the
proceeds of which, together with other gold in
the treasury, created gold fund deemed suf-
ticient to meet the demand which might be
made upon it for the redemption of the out
standing United States notes. This fund, to-
gether with such other gold as might be from
time to time in the treasury available for the
same purpose, has since been called
Our Gold Reserve,
and SlOO,OOOOOO has been regarded as an
adequate amount to accomplish its object.
This fund amounted Jan. l, 1879 to Sll4,19]
800, and though thereafter constantly tiuctuat.
ing it did not fall below that sum until July,
1892 In April, 1893, for the first time since its
establishment this ra5erve amounted to less
than $lOO,OOOOOO, containing at that date only
$07 oil $50.
In the meantime, and in July, 1890, an act
had been passed directing larger governmental
monthly purchases of silver than had been re.
quired under previous laws, and providing
that in payment for such silver, treasury notes
of the United States should be issued, payable
on demand 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 estab-
lshed policy of the United States to maintain
the two metals 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 discretion in terms conferred
on him, by refusing to pay gold on these notes
when demanded, because by such dscrimina-
ton in favor of the gold dollar the so-called
parity of the two metals would be destroyed,
and grave and dangerous consequences would
be precipitatcd by affirming or accentuating
the constantly widening disparity between
their actual values under the existing ratio
| 1t thus resulted that the treasury notes is
sued in payment Of silver purchases under the
law of 1880 We're necessarily treated as gold
obligations at the option Of the holder. These
notes on Nov. l. 1898 when the law compelling
the monthly purchase of silver was repealed,
amounted to more than Sl55,O0J0JO. The notes
Df this description now outstanding, added to
the United States notes still undminished by
redemption Or cancellation, constitute vol
ume Of gold obligations amounting to nearly
S5OOOOO0O. These obligations are the instru-
ments which, ever since we have had a gold
reserve, have been used to depleteit
This reserve as has been stated, had fallen
In April, 1898, to $97,Oll 800 1t has from that
time to the pr sent, with very few and unim.
portant upward movements, steadily de-
rrased except as it has been temporarily
replcnishcd by the sale of bonds.
Among the causes for this constant and uni
form shrnkar IN this fund may be mentions |
the great falling off of exports under the
operation of the tariff law until recently I
force, which crippled our exchange of con-
modities with foreign nations and necessitated
to some exten the payment Of our balance a
gold the unr ural infusion of silver into our
currency, auC he increasing agitation for It's
free and unlim ted coinage, which have created
70 oh IN