The advocate., 1896-01-22
TREASURY DEPARTMENT,
OFFICE OF THE SECRETAR'


SIR; have the honor to acknowledge the
receipt Of Senate resolution dated the Sd in
stant, IS follows:
"ReSoIUed, That the Secretary Of the Treasury
be, and he Is hereby, directed to inform the
Senate II the sum Of S1OOOOOOOO, or any part
thereof, has at any time since the establish
msnt of the sO-called gold reserve, been actu-
ally segregated or set apart from the other
currency or money in the Treasury Depart.
ment, in gold coin, or gold coin and gold GER
tifcstes, or either, for the redemption Of legal
tender notes and different forms Of paper
money Of the government, and when and by
what act of Congress, giving the title Of the
act and the date OF its approval, said so-called
gold reserve was established, and If not estab.
hBhsd by act of Congress, state by what
authority, il any, it was established"
In reply thereto the Senate ia respectfully
informed that at no time since the establish
ment Of the so-caled gold reserve has the sum
OF s1O0OO0,OO0, or any sum, been segregated or
set apart from the general cash in the treas
Hry for the redemption Of the legsl-tender
notes Of the United States, or for the redemp-
tlon Of any other form Of paper money for
which the United States is liable. There Is no
provision Of law requiring a separate fund or
separate account to be kept, and all moneys
received into the treasury, from whatever
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 IA, 1875, which directed the
Secretary Of the Treasury to prepare and pro-
vide for such redemption on the first day OF
January, 1879. No specific sum was prescribed,
but the Secretary Of the Treasury was author
lied 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 con-
isrrsd upon him the Secretary sold for resump-
tion purposes in 1877 and 1878 United States 4
per cent. and AZ per cent. bonds to the
amount Of $050O05O0 and deposited the pro-
ceeds, sO6,OOOOOO 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 Sscre-
tsry OF the Treasury for the redemption d.
rected in the act Of January IA, 1876.
The existence of the reserve fund was gen.
orally recognized from the time Of it's estsb- |
lishment, ss above stated, and one Of the |
measures adopted by the Secretary of the
Treasury to prevent its unnecessary deple.
tion was the discontlnuRnce Of the issue Of |
gold certificates authorized by the act Of
March 8, 1863 This act authorized but did not |
direct such issue.
Some inconvenience resulted from this dis.
continuance, and by section u Of the bank act
Of July II, 1882, the Secretary was authorized
and directed to receive deposits Of gold coin
and bullion and to issue certificates therefor;
but 1t was provided shat the Secretary 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 S1OO,OOOOOO"
No other reference to the reserve fund is
contained in the laws Of the United States.
Very respectfully yours,
~