Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1896-10-01
WHAT WAS THE OBJECTS
THE BOND RESERVE TRAVELLED
IN A CIRCLE,
For che Benefit OF the BOndhOIderS, Tho
Late Bond Issues Fully Explained.

NnaC was Cne Oolect OF Jne Two OOnu
issues, which in the last three years
saddled an Understanding debt of
$3.50, 100000 on the American people2
Was it actually necessary to buy gold
to pay government expenses?"
The solo object of the series of bond
issues in the last two and half years
was to obtain gold toreplete the treas
ury gold reserve. The 800, 900, OcO treas
ury gold reserve is held to redeem the
S346, 900, 900 of United States notes
commonly called greenbncks. In ord
err to force new issues of bonds for the
investment of their money the eastern
bankers in the latter part of 1893 con-
spired to raid the treasury of its gold
and make it necessary for the govern
ment to exchange interest-bearing
bonds for gold to build up the re-
serve. January, 1894, the gold reserve
stood at SOS, 100000. S5O,OOO,OOO Of
bonds wsre exchanged for gold and
the reserve built up to SlO6, 537, 06s. 40.
The bank ring still thirsting for bonds
began at once to raid the treasury and
demand another bond issue. By
treasury financial tables found ON page
1897 ofthe June monthly summary Of
commerce and finance, we find that
during the month of February, 1894,
the bankers by the "endless chain'
process drew over $lO,OOO,OOO of gold
from the treasury. Of this amount
about $11 900, 900 were drawn out with
greenbacks and $S,OOO,OOO by treasury
notes of 1890, although Secretary Car
isle, if he had desired, could have paid
the latter in silver During the month
Of May $40, SAL 1854 of gold were drawn
from the treasury and in june over
s22, 100000. BY July the treasury re-
serve had fallen to S54, 975, 6O7O4 and
in November another exchang of bonds
for gold built the reserve up to $685.
G24, 569.O1. The conspirators at once
raided the treasury to force another
bond issue, and during the month Of
December drew ont 81, 1907, 321, and dur
Ing the month Of January, 1905, raided
the treasury to the tune Of S45, 1l7,73S.
This knocked the reserve down to S44,-
7OS, 1928. This brought another bond
issue. In July the bankers began an
other systematic raid on the treasury,
and by January, 1896, the treasury
gold reserve had fallen to S49, S45, 5O6.-
50. Another issue of bonds was made
and the reserve built up to S12s, 900, 900
In May another raid was planned, and
during that month the reserve was re-
duced to SlO1, 1893, 6O4,91. But fearing
another raid just on the eve OF election
would be an object lesson to the coun-
try that might rebound adversely to
Wall streets interests, at the polls, the
bank ring decided to ''protect" the re-
serve till after election, which for sew
eral weeks they have done; they are
demonstrating to the country that
they can raid or protect the treasury
at their will. This is an object lesson
Of value TO the American people.
This brief history of the successive
bond issues of the last two years is
given-the figures taken from treasury
financial tables-to show the object of
the bond issues-that is to replete the
treasury gold reserve, which a few
Wall street conspirators repeatedly re-
duced to force the government to sad
die the American people with an in
ter.st-bearing debt OF $962, 900, OOO,"
and give them an investment for their
surplus money, and to make broader
the basis of national bank issues.
While there was deficit, and money
was needed to pay government ex-
penses not one dollar of the see, OOO,-
600 of gold purchased with bonds in
the last three years was used to defray
government expenses. 1t was pur-
chased solely to build up the reserve.
The bank ring made it necessary" to
issue bonds, inasmuch as the secretary
Of the treasury would not protect the
treasury. If the bankers had been as
patriotic as they profess to be, they
would not ha re 'forced (0" the gov
eminent into debt to the extent of
s962 900, 900, when it was entirely un-
necessary. st. Louis Journal of Agri-
cultural.