The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-06-04
A HERITAGE OF DEBT
Facts showing That Present Enor-
naous Gold Reserve should Not ne
Credited tn the Last Free
Trade Administrations.


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 as Enthusiastically foreshad-
owing free trade policy, with all the
disturbing conditions incident TO such n
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 S103,2s4,2l9. The Wilson free
trade bill was introduced at the special
session OF Congress in August, 1898.
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had been repealed by the house, and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 1893
the net gold in the treasury had been
reduced TO SsO,S91 600. gold withdraw
ais for export were large by reason OF
apprehensions, by foreign bankers, OF
treasury embarrassments and Of cur
rency arrangements, and there We're
also domestic Withdrawals of geld for
boarding. January 90, 1894, when the
net gold stood at sos, $50. 175, an issue of
$4,000, 900 five per cent. bonds was or
dered by the secretary of the treasury.
which issue was taken by syndicate,
and $40, 336,027 was added TO the treas
ury stock of gold as the result OF this
bond emission, making II $lO6, 527, 06s,
No sooner was the gold paid in
than Withdrawals were resumed, and,
through exports and boarding, the
treasury net gold was reduced by the
end OF July TO 1915, COZ At the end
of October IL was SCI, 36i ,s27. On No
vember "a, 1894, another issue OF $780,
100000 five per cent. bonds was ordered.
This issue also was taken by syndi-
cate, and $43,o57,29 gold was added to
the treasury, carrying the amount Of
net gold TO $i05, 424, 500 by the end of
November. Gold Withdrawals for eN-
port and boarding were again resumed,
and so rapid were these Withdrawals
that by February 2, 1895, the net gold
In the treasury had been reduced 10 $42,
361.O66. Then a contract was made
with the Morgan syndicate for the sale
for gold OF 500, 3l5,00O four per cent.
bonds. This contract was closed June
"a, and the net gold in the treasury
then stood at $l07, 447, s55. Gold with
drawals were again resumed, and by
the end OF January, 1896, the net gold
was reduced to 0,s45, 5o7. On Janu-
airy IA SlO0.O00O0o 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 10 SIPS, $40 46i. With
drawals for export were again resumed,
reducing the net gold to Sioo,057,56l by
the end OF August, but by November
Il had risen TO Sic, 57s, 562.
During 1894, 1895 and 1896 S262, $4,000
five and four per cent. bonds were sold
by the democratic free trade admins
,tration, amounting, with principal and
premium, TO about S2sG,00O,O 900, and the
net results of the treasury were only
$45, 97699O, as shown by the difference
between the net gold at the end Of Mr.
Barrison's administration, Sl03,2S4,el7,
and that at the close OF Mr.. Cleyeland's
term. St4s, G6l 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.. Me-
Kinley. Deducting this sum OF $50 ,0s2,-
647 from the $45 10000 as above leaves
the comparatively insignificant amount
OF ST., 204, 343, whicNis all that can be
properly credited to the sale of bonds
Interest on the $f00,0O0,000 five per
cent. bonds sold In 1894 and upon the
four per cent bonds sold in 1895 and
1896 amounted, before the close OF Mr..
Cleveland's administration, to about
500 $50, 900, and annual interest on these
bonds will be SIC, 10000 10 maturity.
Therefore the democratic free trade adj
ministration OF Mr. Cleveland cost the
country 10 the end OF his term alone
$262 1915, 900 principal and S26,95O,OOo In
terest on the bonds sold, a total of
S2ss, sos, 900. In addition there was a
deficiency of revenue during the opera
ton of the Wilson free trade abomina-
ton Of sisO,0i5,Oll. making $500, 4so,O4i,
against which there was gain of 3d.
204,s43 in treasury net gold, the actual
result Of sales OF bonds
10 was a heritage OF deficiency and
debt that was handed down by the last
free trade administration. May II be
the last one for all time!