Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1896-01-29
no LAW FOR IT.

GFcI SlDC0 Iu6 bona issuing business
was begun by this administration, it
was argued that it was mandatory up
on the treasury department to keep up
the 100000 900 gold reserve because of
the existence of national statute to
that effect. This stock of argument,
however, was confined to the gold-bug
crowd, but emphatlcally denied by the
bimetalllsts of the country, especially
the populist statesmen. Not long
since Senator Allen, the populist men,
Der of Nebraska, succeeded in having
a resolution passed by that body call
ing upon the secretary of the treasury
for information as to the existence or
non existence of such law. The re-
ply, published below, is self expIana-
tory and shows that the secretary was
following precedent and not law:
WASHINGTON, d. c., January IL, 1895.
SIR: Lave the honor to acknowl-
edge the receipt of Senate resolution
dated the 3rd instant, as follows:
Resolved, That the Secretary of the Treas
ury be, and he is hereby, directed to inform
INC OCAotO IL bhC cuui VI ClOO,UUUfOOU, OF any
part thereof, has at any time since the estab-
lishment of the so-called gold reserve, been
actually segregated or set apart from the 9TH
er currency or money in the Treasury De-
partment. in gold coin. or gold coin and gold
certificates, or either, for the redemption OF
legal tender notes and different forms of pa
per money Of the government and when and
by what act of Congress, giving the title of
the act and the date of it's approval, said So
called gold reserve was established, and if not
established by act of Congress, state by what
authority, If any, 1t was established"
In reply thereto the Senate is respect
fully informed that at no time since
the establishment of the So called gold
reserve has the sum of 500, O0O, 900, or
any sum, been segregated or set apart
from the general cash in the treasury
for the redemption of the legal tender
notes of the United States, OF for the
redemption of any other form of paper
money for which the United States is
liable. There is no provision of law
requiring separate fund or separate
account to be kept, and all moneys re-
ceived into the treasury, from whatev-
or source. are deposited in the general
cash. The fund for the redemption of
United States notes was accumulated
under authority of the act of January
ID, 1875, which directed the Secretary
of the Treasury to prepare and provide
for such redemption on the first day of
January. 1879. No specific sum was
prescribed, but the Secretary of the
Treasury was authorized to use the
surplus revenues from time to time to
sell certain descriptions of bonds to an
extent necessary to carry the act into
full effect.
In the exercise of the discretion thus
conferred upon him the secretary sold
for resumption purposes in 1877 and
1873 United States 4 per cent. and At
per cent. bonds 20 the amount of $685.
100000 in gold, in the general cash In
the treasury. This, with other gold
which had been received as surplus
revenue, constituted the fund prepared
and provided by the Secretary of the
Treasury for the redemption directed
in the act of January IA, 1875.
The existence of the reserve fund
was generally recognized from the
time of its establishment, as above
stated, and one of the measures adopt
ed by the Secretary of the Treasury to
prevent its unnecessary depletion was
the discontinuance of the issue of gold
certificates authorized by the act of
March 3, 1868. This act authorized
but did not direct such issue.
Some inconvenience resulted from
this discOntinuance. and by section Il
of the bank act of July r., 1882, the
Secretary was authorized and directed
to receive deposits of gold coin and
bullion and to issue certificates there
for; but it was provided THAT the Sec
rotary of the Treasury shall suspend
the issue Of such gold certificates
whenever the amount of gold coin and
gold bullion in the treasury reserved
for the redemption Of United States
notes falls below 500, OOO, OOO.''
No other reference to the reserve
fund is contained in the laws of the
! United States.
Very respectfully yours,
| j. e. CARLISLE Secretary