Butler citizen. [volume] (Butler, Pa.) 1877-1922, 1896-07-30
COINAGE CATHECHISM
Some Pertinent Questions and
Answers on the Money
Problem.
WORLDS GOLD PRODUCTION
Many Millions of 1t Comes Freely
Into Circulation.
REGARDIEq TREASURY RESERVE.

REGARDING TREASURY RESERVE
Germany, France and England All Occupy
the Same Position as the United States
in This Respect-suspension of Gold
Payment on Government Notes Would
Affect Every Person That Possessed
Dollar.
@. Where are the latest official figures
Of the world gold production' A. In tho
mint director estimate for 1896, published
Last week.
@ What does this estimate show the
worlds present annual gold production to
bel A. eco, 900 600, or S17, ,OO0, 900 more
than in 1895
Q. Compare this total with previous
periods A. The worlds average annual
production Of gold, between 1870 and 1880,
was tll5, 5,osl, 300 of silver, s9l, ,s57, 500;
total, 500 939, 600 or less by s13, 600 900 than
this years estimated production Of gold
alone. As lately as 1884, the worlds COM
hinsd production of gold and silver was
less by t1s, ,00o, 900 than its present produc-
ton OF gold alone.
q. Does this eco, 900, 900 Of new gold
esms freely into circulation? A. 1t does.
q How can you prove that fact? A. BY
the annual coinage statements Of the lead
iHg gold producing and gold importing
nations, all of which show steady in
srssse. BY the amount of gold in the
worlds great depository banks, which has
increased with equal rapidity. These are
perfectly trustworthy signs.
o Is it not true that most of the new
supply Is "cornered' by the Rothschildss
4. There is not the slightest reason for
supposinz such thing.
@ But il the worlds gold supply has
bean increasing 50 rapidly, and is not
'oornored, why has 1t grown harder every
year for our government to maintain its
swn gold reserves A. Because of the free
silver coinage movement in this country.
@ How can that movement affect our
gold resorye1 A. First, by forcing SO much
new silver and paper money into eircula
ton that nobody pays gold any longer to
the government. Second, by the threat
shat the free coinage party will redeem the
AOtC- dL4 DOLuS III OLlyy
which causes holders Of the notes to present
them now for gold.
Q. Why should such holders present
their government notes for redemption
now? A. For the same reason that made
people in the old state bank days, rush in
for redemption the notes Of bank which
was likely to stop payment.
q. Are there not other nations than our
own whose currency requires a large gold
reserve? A. There are.
@. What nations, for instance? A. Ger
many, France, England.
Q. Do not these countries have the same
trouble with their gold reserve as our
treasury doesY A. Not in the least. The
gold reserve in each of these three coun-
tries is larger than necessary, and Is con
stantly increasing.
q. Why Is their situation So different
from oursY A. Because there has been no
doubt Of the money standard in Germany,
France or England.
@. But has not the United States always
had especial trouble in getting gold for its
currency? A. 1t has not
Q. When did it get gold easilyp A. Be
tween 1884, when the gold standard was
adopted, and 1861, when paper money was
substituted and the gold standard aban-
doned
Q. Did gold flow in readily at any other
period2 A 1t did.
Q. WhenS A After the resumption Of
specie payments by the United States In
1870, which was accepted by the world as
our re-adoption of the gold standard.
@. What followed that resumption Of
specie payments? A. Within two years,
S174, ,Oo0, 600 gold was sent to US from Europe.
q. But surely this gold did not go into
the treasury? A. More of it than the
treasury needed went in.
q. How do you know thatf A. AS
early as Sept. 10, 1879 the secretary Of the
treasury announced that gold coin, 4be-
yond the needs Of the government, had
accumulated in the treasury" and au-
thorized the use of gold Ia regular treas
ury expenditures.
q. We're those two years a period of
prosperity A. For this country, period
Of unparalleled prosperity.
Q. How long did this prosperity astP
A Until the silver coinage movement was
again threatening our maintenance of the
gold standard.
Q. What happened then? A. Gold pay
ments into the treasury almost ceased,
and gold Withdrawals through redemp-
of government notes grew larger.
Q. Suppose all the gold in the treasury
reserve were to be used up what would
happenY A. The government could not
pay gold coin to the holders Of its notes.
Q, What difference would that make to
holder of IA government note-say of
dollar bill-who did not care to use gold?
A. His dollar bill would depreciate along
with all other government notes. Since it
no longer could exchange for a dollar in
gold, it would no longer buy what dollar
in gold would buy.
O. How would such depreciation show
itselfP A. BY an artificial and general rise
in prices, without n rise In wages and
salaries
Q. Has this ever actually happenedr A
During our civil war, when the gold
standard was abandoned, the government
paper money deprecated to 80 per cent. of
Its gold value, the gold premium rose
above 100, and there was IA frightful ad-
vance In prices.
O. Then would suspension of gold pay
ment on government notes injure all holds
ers Of such notesg A. Sooner or later, it
would cheat every man with u dollar bill
In his pocket.-New York Evening Post
DIR. JAMESON and the other leaders i'll
the Transvaal raid, on t. al in London,
were found guilty and sentenced to from
to IS months Imprisonment each.
THE Philadelphia Bulletin publishes
story to the effect that Senator Quay is
pledged to Governor Hastings for United
States Senator and that a definite under
standing was had previous TO the Rcpub