The Dakota chief. (Gann Valley, Buffalo County, S.D.) 18??-1913, 1895-12-12

ton ana retirement. DUNE OF TIA II IdLu
however. been previously redeernA d ant
cancelled upon the issue OF addition u IA,
tional lank circulation. as perniit'a bs
standing at the time Of the passage o.
the act f%orbiddins their further recA'e.
ment was s34l .6sl .Gle. The law OF 1873 Ad
tanned. in addition. tho following express
provision; Ana when any of said note.
noy oe redeemed or be received into TN.
Hhaieyyyr on nnd Sny law: from any source
.tntss' thty shall not be retired. can
! NED or destroyed. but they shall ne is
. cuflu and paId out again and kept In cir
Euia'ioh. ThiS was the condition OF az.
Ialfs on the LIST day Of January, 1910,
wnich had been fixed upon four years be-
lore az the dats for entering upon the re-
uemptlon ana retirement of all these
notes. and for which. such abundart
means had been provided. The govern
,nent was put In the situation of owing
to the holders OF It's notes debts pay able
IN 9oid on demand which could neither be
retired by receiving such notes in dis
EnarSa OF ob,igations due the government.
~ was forced to redeem without redemp-
t1on and 10 pay without acQuittance.
Tho Gold Reserve.
There had been issued and sold sg5, 500. 900
oa the bonds authorized by the resumption
act OF 1875. the proceeds Of which, together
with other gold in the treasury, created a
gold fund deemed sufficient to meet the de-
mands which might be made upon Il for
Wv VI lnC OulSL1IulJ1k LNlICU
States notes. This fund, together with
such other gold as might be from time TO
time In the treasury available for the same
purpose. has been since called our gold re-
ave. and 500. 000.O W has been regarded
a. an adequate amount to accomplish its
onlect. This fund amounted, on the LIST
gay or January. 1879. TO sl14, 1913, 800 and
though thereafter constantly fluctuaring
1t did not fall below thai sum until July.
iss2. In Apr!l. lse3. for the first time since
us establishment, this revenue amounted
to less than 500. 600. 0vO. containing at that
date only 1901, 800.
od In the meantime In July, 1890. an act
lnlental money purchases of silver than
had been required under previous laws
and providing that III payment for such
siirer treasury notes Of the United States
should be issued. payable on demand in
So!d or silver coin at the discretion of the
secretary of the treasury.
he Mas' nowHvsr, declared IN the act to
states to maintain the two metals on a
parity with each other upon the present
vided by law"
In view OF this declaration IT was not
deemed permissible for the secretary o.
terms conferred on him by refusing to pay
gold on these notes when demanded. be-
cause BY such discrimination in favor OF
two metals would be destroyed and grave
and dangerous consequences would be
precipitated by affirming or a~ccentuat!ng
VIZ SoAiotGlbly WiIchlDs DISPARITY between
their actual values under the existing ra-
ito.
1t thus resulted that treasury notes is-
sued in ayrnen Of SILVER purchases under
he law of 1890 were necessarily treated as
gold obligations at the option of the hold
err. These notes, on the LIST day of Novem-
monthly purchase OF silver was repealed,
amounted TO moro than sl55, coo. 600. The
notes of this description now outstanding,
added to the United states notes still un-
diminished by redemption or cancellation,
constitute a volume Of gold obligations
amounting to nearly $500, o0, 900. These obi
cations are the instruments which ever
since we have had a gold reserve have
been used to deplete It,.
This reserve, as has been stated, had
fallen in April. 1898. to So, oil. $50. 1t has
from that time to the present, with very
few and unimportant upward movements,
steadily decreased except as 1t has been
temporarily replenished by the sale of
bonds.
Among the the causes for this constant
and Uniform shrinkage in this fund may
be mentioned the great falling off of ex-
ports under the operation of the tariff
law until recently in force, which Grip
pied our exchange OF commodities with
foreign nations. and necessitated TO some
extent the payment Of our balances in
gold; the unnatural infusion Of silver into
our currency and the increasing aglta-
ton for its free and unlimited coinage,
which have created apprehension as TO
our disposition or ability to continue gold
payments; the consequent boarding Of
gold at home and the st9ppage Of invest,
return OF our securities already sold
abroad: and the high rate of foreign ex-
change, which induced the shipmel of
our gold TO be drawn against, as a mat
ter OF speculation.
The Three Bond Issues.
In consequence of these conditions the
gold reserve, on the LIST day of February,
1894. was reduced to So, 4Ss, 377. having lost
more than S3l 900, 600 during the preced-
ing nine months or since Anrn 1892 Ira
replenishment being necessary. and no
other manner Of accomplishing It being
sale Of bonds provided for by the act OF
1875. Fifty millions OF these bonds were
sold. realizing SIS. 65S, 2e5 II. which vas
added to the reserve fund of gold then on
reserve. which had suffered constant and
large Withdrawals in the meantime, stood
on the 9Th day Of March, 1894. at the sum
ever. Immediately thereafter so acceler-
ated that on the 3oth of June. 1894, it had
fallen to S.; : S'9$5, thv =, lnSoasiGngg BY with,
situation when the sale OF $50, coo c0c in
bonds was effected for It's replenishmert.
This depressed condition grew worse. Ind
on the oath day OF November. 1894. our
gold reserve being reduced to 81. $50. 70l.
It. BECAME necessary to again strengthen
bonds. amounting to $4,000, coo. from
which there was realized SIS. 53s. 500, with
which the fund was increased to $1ll,-
142, 021 on the 4th day of December. 1894.
Again disappointment awaited the anx-
ious hope for relief. There was not even
a lull In the exasperating Withdrawals
of gold. On the contrary. they grew lar
ger and more persistent than ever. Be
tween the 4th day Of December. 1894. and
early in February. 1895. a period of scarce
ly moro than tive months after the &C.
ond reinforcement of our gold reserv, by
the sale of bonds. it had lost by such with
drawaIs more than 369. 600. 900. and had
fallen to si1. $40. ISL. Nearly SIS. coo, 900 had
been withdrawn within the month imme-
diately preceding this situation. In an
ticipation of impending trouble 7 had on
the 2sth day of January, 1895. addressed
a communication to the congress fully
setting forth our difficulties and danger
GUS position, and earnestly recommend
ing tnat authority be given Che secretary
of the treasury to issue bonds bearing a
low rate OF interest. payable by their
terms in gold. for the purpose of main
tanning a sufficient gold reserve. and also
for the redemption and cancellation Of
outstanding United States notes and the
treasury notes issued for the purchase of
silver under the law of 1890. This recon-