The Saint Paul globe., 1896-12-19

REDEMPTIoNs AND EFFORTS.
A contemporary. .endeavoring to give
an Inquirer" information relative to
the next question in the solution of our
currency problem, the retirement of
government note issues and the sub
stitution-of bank notes, succeeds only
in showing its own need of it. Because
between resumption in 1879 and 1892
greenbaekss and treasury notes of 1890
to the amount of s4S, $40, 500 only were
presented for redemption and redeem
We're redeemed, it concludes that "a
large surplus of revenue during the
thirteen years referred to may have
had some bearing upon the matter"
why was it that in spite of the coin
age of from 81 2,00o 09o to s., Zoo, 900 a
month in Bland silver dollars during
most of this time, the endless chain
was not in operation?'
The true point of division is from
1879 to 1890 inclusive, because it was
in the latter yeal that the quantity of
subcutaneous injections of currency
was doubled, and because it was in No
venber of that year that the second
financial panic since 1879 made it's ap-
.pearance, gathering head to its final
elimination in 1898. The preceding
panic occurred in 1884, and was a re-
suit of the reaction following the specu-
lation induced by the resumption act of
1879, which inflated the currency to the
extent of all the gold and silver in the
country. All causes operated to set the
endless chain" in operation, and gold
redemptions, that had been merely NOM
inal, $4,000 in 1873, rose to s., ,222, ,0O0 in
1885, and $6,S63, 669 in 1896. Neither Mr.
Cleveland nor his secretary of the
as to what had contributed to this
raid, for, before his Inauguration, the
president-elect had expressed himself
upon the effect of the increasing guam
tity of silver notes and in his inaugu-
raj urged the repeal of the act, while
the secretary allayed the alarm by pro-
curing a change in the denominations
of the silver. certificates from tens and
its multiples to ones, twos and fives.
Under the combined effects of the
secretary's anodyne and the recovery
from the panic redemptions fell again
to nominal amounts, those for 1890
being $685. The condition of the
revenue had nothing to with the raid
then any more than it had later, for the
excess of revenue in 1884 was s104. .0e0,-
GOO; in 1885 was over $63, ,010, 900; in 1886
over $95, 5,G0o,e eco, as in 1890 it was s105,-
100000; over $37 900, 900 in 1891; more
than $40, 100000 in 1892, and over s., ,o00,-
coo in 1898. With the doubling of the
purchases of silver and the change in
the character of the Instruments used
in payment from silver certificates re-
deemable in silver to treasury notes
redeemable, practically, in gold, con-
joined with the financial conditions
abroad. resulting from the Barring
Bros. failure, the raids began again,
843 in 1892 and s1o2, 100, 345 in 1899. Mean
while apprehension was increased by
the alternating passage of free coin
age bills by the house or senate. our
securities held abroad came hurrying
home for sale and gold was exported in
exchange, and this regardless of the
surplus in the treasury. The redemp-
tions in 1894 were $S4, S42, $50; in 1895.
s117, 1854, 1913, and s15S,655, ,s5e in 1896.
The total redemptions from 1879 to
1890, inclusive, We're $2S,1 1876, 1888, an an
nual average of $2.349, ,915; while from
1891 to 1896 they were $478, ,064, ,562. aver
aging annually 1857, ,427. During the
| former period the gold exports amount
ed to $252, 1876, an annual average of
81, ,o66, 400 and in the latter they were
! $780, 657, ,205, or an annual average of $50,
443, 600. The total redemptions from
| 1879 to 1896 were $500, ,263, ,545, of which
426,190,220 were of greenbacks. and
$50, 0,07S,325 We're of treasury notes of
| 1890, while the total exports of gold
were s753, ,453,9S1. The greenbacks have
been redeemed entirely and one-fourth
over again in this time, while over so
! per cent of the treasury notes have
been paid in gold. Yet they are
! in readiness to perform the same work
over again. AS bearing on the question
! of bond issues and revenue, the charge
! that gold has been used to supply de-
! ficiencies in income loses force when
we consider that of the 1852. .0O0, 900
bought with bonds over $120 600, 900 is
on hand, while the redemptions since
1893 amount to $3.50, 304.
MEN OF Eastwood.