Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1895-12-12

009,l7s. Immediately after that date and In
Jaouary, 1915, law was passed providing for
tho resum ton OF specie payment by
which tho Secretary of tho Treasury
was required, whenoy'r additional circu-
lation was is,uod TO National banks,
70 rotire United States notes in equal amount
to 50 por cent Of such additional National bank
circulation until such notes were reduced 10
S3OO,OOOOOO. This law further provides that on
and after tho last day OF January, 1879, tho
United States notes then outstanding should
be redeemed in coin, and in order to provide
and prepare for such redemption tho secretary
of tho treasury was authorized not only to use
any surplus revenues Of the government, but TO
issue bonds of tho United States and dispose OF
them for coin and TO use tho proceeds for tho
purposes contemplated by tho statute
In May, 1878, and before tho dato thus ap.
pointed for the redemption AMI retirement Of
these notes, another statute was pissed for
bidding thor further cancellation and retro.
ment, Some of them had, however, boon pre-.
viously redeemed and cancelled upon the issue
OF additional national bank circulation as por-
mittcd Ivy tho law OF 1879 so that tho amount
outstanding at tho timo of tho passage of tho
act forbiddng their further retirement was
S 0,jSl,Dl6 Tho law OF 1873 did not stop at dis
tinct prohibition but contained in addition
'AAo ANilNNiHB pNoNlhlOny anu WHtn uny
OF said notes may be redeemed or
be received into tho treasury under
any law from any source whatever, and
shall belong to tho United states, theyi hall not
DO retired, cancelled, or destroyed, but they
shall be re-ssued AMI paid out again and Ike pt
in circulation" This was tho condition of af-
fairs nm the LIST day Of January, 1879, which had
been fixed upon four years before as tho date
FOR entering upon tho redemption and retire,
ment OF all these notes, and for which such
abundant means had been provided The gov
eminent was put in the anomalous situntion OF
owing to tn holders Of It's notes, debts payable
in gold on demand which could neither DO ro-
ured by receiving such notes in discharge OF
obligations due the government not cancelled by
actual payment in gold. IL was forced to re-
deem without redemption and TO pay without
acquittance
There has boon issued and sold SJj,j)),000 OF
the bonds author 2ed by tho resumption act OF
lI5, the proceeds of which, togotherwlth other
gold in tho treasury create gold fund deemed
sufficient to meet the demands which might be
made UPON it for the redemption Of the out.
standing United statsi notes. This fund.- to-
gether with suol other gold as might BIO from
time totime in tho treasury available for the
Same purpose, has been since called our gold
reserve and 500 0JO,0Jl has been regarded as an
adequate amount to accomplish its object
This fund amounted on tho 1st day Of January
1870, to Slld, 1885 and though thereafter con-
stantly iluctuatiug it did not fall below thas
sum in July, 1892 In April, 1905, for thu first
timo since its establishment this reserve
TO less than Sll0,1Oo,O)O, Goa tanning
at that date only $J,Oll,93).
The Bond Contract.
The message reviews at great length tho low.
ering of the I'D reserve, the shipment of gold,
the issuing of bonds, the entering into the bond
contract with capitalists, ana his messages 10
Congress for relief Continuing, tho President
says:
The Congress having declined to grant tho
necessary authority to secure this saving the
contract unmodiHed was carried out, resulting
in gold reserve amounting to SlOj,Sil,2jJ ON
the Sth day of July, 1891. The performance of
this contract not only restored the reserve but
checked for a timo the Withdrawals of gold and
brought on period of restore confidence and
such peace and quiet in business circles as
were of the greatest possible value to every in
terest that affects our people, have never had
the slightest misgiying concerning the wisdom
or propriety of this arrangement and am quito
willing to answer for my full share Of response
bility for its promotion,
l believe it avorteI disaster, the imminence
of which is fortunately not at this time gener-
ally understood by our people Though tho
contra mentioned stayed for time the tide
of gold withdrawal, its good results coull not
be permanent. Recent Withdrawals have re-
duced the reserve from S10lbn,2l0 on the It'll
day of July, 1885, to SH,333,9 8, How long it
will remain largo enough to render It's increase
unnecessary is only matter of conjecture
though quite large Withdrawals for shipment
thn irYpN tata fsNt,
informed quarters About Si6,000,0J0 has
been withdrawn during the month of November
The foregoing statement of events and condi-
tions develop the fact that after increasing our
interest bearing bonded indebtedness moro
than $l62,OW,OOO to save our gold reserve, we
are nearly where We started, having now in
such reserve S,0,3)39S0 as against $685. iSs,377 in
February 1894, when the first bonds were issued.
Though the amount of gold drawn from tho
treasury appears to DO very large, as gathered
from the facts and figures herein present il
actually was much larger. considerable sums
having been acquired by the treasury within
the several periods stated without tho issue OF
bonds.
On the 2Sth of January, 1895, it was reported
by the secretary Of the treasury that moro than
Sl72,OOOOOO of gold had been Withdrawn for
boarding or shipment during the year pre-
Il
1879 to July IL, 1890, period of more than 10
years, only little over $250OO,OOO was with
drawn and that between July II, 1890 the date
OF the passage OF tho law for an increased pur-
chase of silver, and the first day of December,
1897 or within less than five and half years,
there was withdrawn nearly 3iJ0O0,0J0,
making the total OF moro than $l03OOO,0O0
drawn from the treasury in gold since January
1st., 1879, the date fixed in 1915 for tho retire
ment of the United States notes.
early S527, 10000 of the gold Withdrawn
have boon paid out on theie United States
notes, and yet every one of the SlG10)0)0 is
still uncancelled and ready to do service in fu-
ture gold depletiols. Moro than S7j,UJJ,0O in
gold has since til ,ir creation in Is 0 been paid
out from the treasury upon the NOTES given on
the purchase OF silver by tho government;
and yet the whole, amounting 10 S15 900 300
except lit moro than Sl6,0U,0O0 which have
been retired by exchanges for silver at the re-
quest of tho holders, remain outstanding and
prepared to Join their older and more OK
perienced allies in future raids upon tho treas-
ury's gold Teserve
On July 1, 1882, mora than n year and half
before thu first bonds wero issued TO rcplenish
the gold reserve there was a net balance in tho
treasury exclusive OF such reserve Of less
than S!3.OJ0,0j0 but the gold reserve
amounted TO more than $lhl,0)O0Jl, which was
tho quoting feature Of tho situat on. 1t was
when the stock Of god began rapidly to fall
that fright supcrvenc1 AID our securities held
abroad were returned for salo and debts owed
abroad were pressed for payment. In tho mean
time extensive shipments of gold and OF Tor un
favorable indications causol restlessnoss and
fright among our people at hons.
Tie act Of July II, 1870, in a still holder effort
increased the amount of liver tho Government
was compelled to purchase and forced it to
become tho bnyer annually OF "a 0lO lN0