The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-04-02
BEGINNING OF THE GOLD RAID,
AsheyiIle Citizen.

Asheyille Citizen.
Whence inflated the movement that
has, time and again, raided the United
States treasury of its gold reserve and
been the cause of the increase of the
bonded indebtedness of the United
States by hundreds Of millions-inter-
est and principal, when paid, over
$4,000, 900? What gave holders III
Treasury notes the hint that they
could get gold for them over and over
again? Under what administration
was it? What Secretary Of the Treas
ury was responsible for it,and is to-
day? Answers 10 these questions
were made in the recent speech Of SEN
ator Cockrell in the Senate to which we
have already referred as one of the
most effective addresses ever made on
the subject of free silver.
In October, 1891, Elihu b. Hayes. sec
rotary of the Republican club Of Massa-
chusetts, with headquarters at 25s
Washington street, Boston, wrote the
then Secretary Of the United States
Treasury Department, Charles Foster,
a letter in which was this question,
which Hayes said, had been suggested
by discussion in the club:
.sAre not the present notes redeem
able in either gold or silver coin at the
United States Treasury? Does the
government so redeem them when pre-
sented2"
Secretary Of the Treasury Foster re-
piled in part as follows~note his lam
guage:
..The Treasury notes differ from the
silver. certificates in that they are re-
deemable in either gold or silver coin
at the discretion of the Secretary Of
the Treasury, with a provision of law
to the effect that these two dollars shall
be maintained at parity, which is
virtual promise that the notes shall oil
ways be redeemed in gold or its equiv
aIent"
This question and answer were pub
lished in Boston, and drew out a tele-
gram, from Phineas Pierce, 80 Summer
street, under date of October 10. 1891,
as follows:
Noticing III your letter Of October
10th to Republican club, published
here this morning, statement that
Treasury notes are redeemed in gold
at any assistant treasury, | sent a one
thousand dallar note to the sub-treaa-
ury here this morning, requesting
such redemption in gold. This was
refused. If your letter correctly states
policy of the Treasury, will you please
send instructions to sub-treasurer here
to redeem notes in gold. An early an
swer earnestly requested"
Secretary Fosters answer, October
IA, was: Assistant Treasurer KEN
nard has been instructed to redeem
treasury notes in gold" Foster also
sent a telegram to Mr.. Kennard, ask
ing, "Why didn't you apply to the Uni
ted States Treasurer for instructions
when treasury notes were presented
for redemption in gold?" Kennard's
reply Is significant:
las no general demand has been
made for the exchange of treasury
notes in gold, tile occasion had not aris-
en- for asking for specific Instructions
Later, on October 81, 1894, Kennard
ia a private letter said, in the course
Of history of the whole transaction:
mo specific instructions were ever
received as to their Treasury notes.
redemption in gold, nor had the ques-
ton ever been raised. The notes, it was
tacily understood, had inherited their
silver character from the act of Con-
gress which created them and which
explicitly directed the Secretary of the
Treasury to purchase the silver bullion
from time to time and to issue these
notes in payment for such purchase.
Up to October 10, 1891, there was NOT
d bank officer IN town that ever enter
tanned the idea of receiving gold in ex-
change for those notes. My predeces-
sor, Mr. Aldrich, confirms this. -. The
exigency for the test Of the exact bear
ing of those notes had not arrived till
mischieyously forced by the CONT
mental Bank, the president of which
subsequently informed me that had