Ceredo advance. [volume] (Ceredo, W. Va.) 1885-1939, 1898-06-01
A HERITAGE OF DEBT
What the Cleveland Bond Issues
Cost the Country.
Facts showing That Present Enor-
nous Gold Reserve should Not lie
Credited tn the Last Free
Trade Administration.

The assertion is frequently made by
enemies of the administration that the
enormous net gold reserve now in the
treasury is due to the policy of the
Cleveland administration in selling
bonds during 1894 and 1895. The facts
show that the statement is entirely
false.
The election of Mr.. Cleveland in 1892
was regarded asunmista kably foreshad
owing IA free trade policy, with all III,
disturbing conditions incident TO such
change in revenue laws. Consequently
depression in business and in Industrial
enterprises began almost Immediately
after the result of the election was an.
'nounced.
At the close of the Harrison admin
istration the net gold in the treasury
was 03,2s4,2l9. The Wilson free
trade bin was introduced at the special
session of Congress in August. 1893
The silver purchasing clause of the act
had been repealed by the house. and
and business was partially reviving. but
the free trade bill caused an unfavor.
able reaction which was reflected in
| decreased customs and internal revenue
receipts and in a gradually increasing
revenue deficiency. At the end OF 1899
the net gold in the treasury had been
reduced TO $50. $50 600. gold withdraw
ais for export We're large by reason OF
apprehensions, by foreign bankers, oil
treasury embarrassments and of cur.
rency arrangements, and there wers
also domestic Withdrawals OF geld for
hon I'll I... ne -.
net gold stood At S65,65O. 1T5. an issue of
S50,000,000 five per cent. bonds was or.
dered by the secretary OF the treasury
which issue was taken by syndicate
and $40, 336, 927 was added to the treas.
rry stock OF gold as the result of this
bond emission, making il $l0G, 527 O6S
No sooner was the gold paid in
than Withdrawals were resumed. and
| through exports and boarding, tn,
treasury net gold was reduced by the
end of july TO S54,975, cor. At the end
of October IL was SOL 1861. s21. On No,
Vember IA, 1894, another issue of $50.
100000 five per cent. bonds was ordered
This issue also was taken by a syndi.
cate, and Sl3,957,2o7 gold was added to
the treasury, carrying the amount of
| 49, rNAA w RAN"ff~fsoht DN the enc OF
November. Gold Withdrawals for ex.
port and boarding were again resumed.
and so rapid were these Withdrawals
that by February ., 1898, the net gold
in the treasury had been reduced to S42..
36l,966. Then a contract was made
with the Morgan syndicate for the sale
for gold of SCI, 1880 four per cent.
bonds. This contract was closed June
-, and the net gold in the treasury
then stood at $i07, Az ,s55. Gold with
drawals were again resumed, and bv
the end of January, 1896. the net gold
was reduced To $40, S45, 507. On Janu-
ary IA 500. 100000 of four per cent.
bonds were offered for popular sub
| scription. This resulted in an increase
of the net gold in the treasury by the
end of March to SIPS, 646. 46l. With
drawals for export were again resumed
reducing the net gold to 500, 957 .56I by
the end of August, but by November .
IL had risen 10 $l16,57s, 562.
During 1894, 1895 and 1896 S262 .s15 900
five and four per cent. bonds were sold
by the democratic free trade admins
tration, amounting, with principal and
premium, to about S2S6. 900. 600. and the
net results of the treasury were only
S45,J76,990. as shown 10y the difference
between the net gold at the end of Mr..
Harrison's administration, $1O3.2s4.217.
and that at the close of Mr.. Cleveland's
term, Sl4s,661, 200, though really S32.-
Os2,647 of the last named sum was due
TO gains in gold by the treasury re-
sulting from the restoration of conf
dence caused by the election of Mr.. Nc
kinley. Deducting this sum of So. Os2. -
b41 from the S45.376, 800 as above leaves
the comparatively insignificant amount
Of $i3,294,343, which is all that can bt
properly credited to the sale of bonds.
Interest on the S1OOOoO.OoO five per
cent. bonds sold in 1894 and upon the
four per cent. bonds sold i'm 1895 and
1896 amounted, before the close of Mfr.
| Cleveland's administration. TO about
S26.25O,000. and annual interest on these
bonds will be SIG, 400 900 10 maturity.
Therefore the democratic free trade adj
ministration Of Mr.. Cleveland cost the
country to the end of his term alone
S262.3l5,O0O principal and $50. 25O. 600 IN
terest on the bonds sold. n total of
s2ss.565.000. In addition there was
iehciency Of revenue during the opera-
non Of the Wilson free trade abomina-
ton of S1so.915,O4. making s46o. 4so. 04l.
gainst which there was a gain OF S13.-
'94,s43 in treasury net gold. the actual
result Of sales OF bonds.
IL was a heritage Of deficiency and
lent that was handed down by the last
rec trade administration. May il be
the last one for all timel
A LESSON IN ORTHocRApnV