Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1896-01-15
HOW IT WORKS.

| 3AOW - WV6A6s
The greenback redemption process
and its results as applied to the treas.
ury and the country is thus described
by the American:
"Twenty-three months ago the gold
reserve stood at S65, 600 900. on Decem-
Der 31st last at but $50, 875 1888. One
hundred and eighty-two millions OF
gold have been added In the interim.
1t has gone, been paid out in redemp-
ton of greenbacks and treasury notes.
1t has been replaced in the treasury in
the shape of the paper Of the govern
ment. The issues of bonds have failed
of their ostensible purpose, that is to
keep gold in the treasury, as could
have readily been foreseen, and as the
new issue, must now fail. Artificial
means cannot keep gold in the treasury.
To put it there by borrowing is but to
increase the demands for redemption,
lead to greater Withdrawals than would
otherwise take place. To borrow gold
abroad anu to bring it to America is
to locally initiate prices, 70 stimulate
imports and check exports, resulting
i'll an accumulation of an adverse bal
ance of trade, such as we have exper-
fenced after tn9 bond issues of the past
year, an. increased demand for gold for
export, and an increased drain on the
gold reserve.
The $l82, 000. 600 in gold has gone as
the hundred million or more now about
to be borrowed will inevitably 90, but
certainly it did not leave void III the
treasury. The gold was replaced by
greenbacks and treasury notes, and
these were added to the cash resources
of the treasury. So while the issue of
bonds failed of their purpose, they did
add $182, OO0. 900 to the cash resources
of the treasury. In short, the attempts
TO borrow gold have resulted in borrow
ing greenbacks and treasury notes.
Half of the United States legal tender
notes and treasury notes of 1880 thus
received by the treasury, have been re-
issued, and are now outstanding; half
are still III the treasury. The $9O,OOO,-
600 or so of treasury notes and green
backs still in the treasury, represent an
addition to the resources of the govern
ment; decrease of actual indebted
ness of like amount.
Ana the $50, 00O, 900 or so outstand-
ing; why are they outstanding? Sure.
ly they were not given away. They
were paid away to meet the expenses
OF the government, because during the
twenty-three months since the first
bond ISSUE, receipts have failed to
meet the expenditures of the govern
ment by 500, 200, 900, and, it being nee
essary TO meet this indebtedness, the
greenbacks and treasury notes redeem.
ed with the gold borrowed, were used
for this purpose.
when the first bonds were issued in
February, 1894, the gold reserve stood
at $50 ,OOO, 600, and the net cash balance
at less than $4,000, 600. Today the
gold reserve stands at less than $65, OOO,-
100, and the net cash balance, chiefly
greenbacks and treasury notes redeem
ed with the borrowed gold, at $4,000,
600. Thus the notes received in return
for the gold borrowed, to an amount of
over $3.50, 100000 have been used, $780,
100000 to meet the deficit, and 500, OOO,.
OOO are still in the treasury.
The greenbacks and treasury notes
are not given away. If not required to
meet the deficiency in revenue, they
would accumulate in the treasury. AS
it Is, $4,000, 900 have been used to meet
the expenses of the government, $780,
100000 are in the treasury, and the
government is paying running expenses
with the notes received in exchange for
the gold so arbitrarily ana unnecessar-
lily borrowed"