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States notes then outstanding should be
lEtJ^.rned lh coin,and In order to provide
a. prepare tor such rcdeifTptlon the
Aret&ry of the Treasury was outhor
1 not only to use any surplus reve
es of the Government, but lh issue
nds.of the United States and dispose
tb.em.for coin and to use the proceeds
;lha' purposes contemplated by the
i-Mey, 1878, and before the date thus
luted for the redemption and te?
en t of these notes, nnother sta
.Jivas passed, forbidding their fur
cancellation and retirement. Some
.'them had, however, been previously
'redeemed and cancelled upon the Issue
-additional Natlonol hank cireula
s&tiprt, as permitted by the luw ot 1875.
i.BO that the amount outstanding at the
' tithe of the passage of the uct forbid
>fllngr their further retirement nus ?316,
~Sl,016. The law of 1S7K. did not stop
t 'distinct prohibition, but contained,
i addition, the following express pto
iBlon Into the Treasury, under any
?w, from any source whatever, and
lhalj belong to the United Slates, they
?halt not be retired, cancelled, or des?
troyed, but they shall he re-Issued anil
paid out again and kept In circula?
This was the condition of affairs on
e 1st day or January. 1879, which had
ien flxed upon four years before as
e date for entering upon the redemp
on and detriment of all these notes,
d, for which such abundant means had
.The Government was put in the nno
nninus situation of owing to the hold
Jf)*tTB of Its notes, debts payable In gold
Wn demand which could neither be re?
tired by receiving such notes in dis?
charge of obligations due the Govern?
ment, nor cnncelled by acttml payments
In gold. It was forced to redeem with?
out redemption and to pay without ac?
There had been Issued and sold ?95,
BOO.000 of the bonds authorised by the
ree?mptlon act of 1875. the proceeds of
Tt-hlch. together with other gold In the
Treasury, created a gold fund demnnd
sufficient to meet the demands which
might be made upon II for the redemp?
tion of the outstandlUK United Slates
notes. This fund, together with such
other gold as might be from time to
ttme In the Treasury avallnble for the
aame purpose, has been since called
lo?r gold reserve and $100,000.000 has been
regarded as an adequate amount to ac?
complish Its object. This fund
amounted on the 1st day of January,
1870, to ?114.193.360, and though thereaf?
ter constantly fluctuating. It did not fall
below that sum until .Tulv, 1892. In
April. 1893, for the first time since Its
establishment. Ibis reserve amounted to
less than I100.noo.000. containing at that
date only ?97.011.330.
. In the meantime, and In July. 1800. an
act had been passed directing larger
governmental monthly purchases of
Bllver than had.been required under pre?
vious laws, and providing that In pay?
ment for such silver treasury notes, of
the United Stales should be Issued pay?
able on demand In gold or silver coin
&t the discretion of the Secretary of the
-Treasury- It was. however, declared
In the act to be "The established policy
?tyt the United States to mnlntaln the
two metals on a parity with each oth?
er upon the present legal ratio, or Buch
..ratio aa may be provided by law. In
yvjew of this declaration It was not dccin
i?id ..permissible for the Secretary of
:*the Treasury to exercise the discretion
iln terms conferred on him. by rcfusli.g
?;to pay gold on these notes when dc
:.tnanded, because by such discrimina?
tion In favor of the gold dollar the so
C-called parity of the two metals would
'.be destroyed, and grave and dangerous-:
.'consequences would be precipitated bj
5 .affirming or nccentunting the con
, ntantly widening disparity between
'.their actual values under tho existing
.ratio. It thus resulted that the Trens
? tiry notes issued in pavm*nt of silver
purchases under the law of 1890, were
. necessarily treated as gold obligations
at the option of the holder. These notes
-i'on the 1st day of November, 1893, when
?. the law compelling the monthly pur?
chase of silver was repealed amounted
to more than J155.000.000. The notes o
this description now outstanding added
to the United States notes still undi
i mlnlshod by redemption or cauccll.i
i.tlop constitute a volume of gold nbilga
I tlons amounting to nearly $500,000.00ii,
i1, these obligations are the instruments
v.vwhlch, ever since we have had a gold
? reserve, have been used to deplete It.
s'-Thls reserve, as has been stated, had
;. fallen In April. 1893. to J97.011.1130. It
|mi from that time to tho present, with
1; very few and unimportant upward
y," movements, steadily decreased, except
I.'.as it has been temporarily replenished
by the sales of bonds.
Among the causes for this constant
1 and uniform shrinkage In this fund may
j? be mentioned the great falling off of
;. .exports under the operation of the tariff
?;;.-l?w; until recently In force, which crip
:T; pled our exchange of commodities with
m foreign nations and necessitates to some
^extent the payment of our balances in
eg gold; the unnatural Infusion of silver
IvS/lnto our currency, and the increasing
H agitation for Its free and unlimited
^ coinage, which have created apprehen
&<.'slon as to otir disposition or ability to
\:} continue gold payments; the consequent
/..hoarding of gold at homo and the stop
Vi-Page of investments of foreign capital,
- as well as the return of our securities
already sold abroad, and the high rate
? of foreign exchange, 'which induced
the shipment of our. gold to be drawn
. against, as a matter of speculation.
In consequence of these conditions
' the gold reserve on the 1st day of Feb
ruary, 1894, was reduced to $65,438,377,
v' haying lost more than $31.000,000 during
the preceding nine months, or since
. 'April, 1883. Its replenishment being ne
I ceBeary, and no other manner of ac?
complishing It being possible, recort
; -was had tp the lBsue and sale of bonds
provided for by the resumption act of
1875. Fifty millions of these bonds were
sold, yielding $58,633,295.71, which was
- added.to the reserve fund of gold then
on hand. As a result of this operation
I this reserve, which had suffered con
I etant and large withdrawals in the
meantime, stood on the 6th day of
March, 1894, at the sum of $107,446,802.
ItB depletion was, however, immediately
! thereafter so accelerated that on the
80th day of June, 1894, It had fallen to
$64,873,025, thus losing by withdrawals
more than $42,000,000 in five months, and
dropping slightly below its situation,
when the sale of $50,000,000 Jn bonds was
effected for Its replenishment. This
depressed condition grew worse, and
. /in fVia Ol I h ,1a tr r,* TC? ,.r,i > ,?.?? 1 CO i ,?>??
? on the 24th day of November, 1894, our
gold reserve being reduced to $57,669,
; 701, U became necessary to again
'strengthen It. This was done by an?
other sale of bonds amount to $500,000,
.000, from which there was realized $58,
1538,000, :\vith which the fund was in
??teased to $111,142,021 on the 4th day
-tit? Paewaber, 1894.
Again disappointment awaited the
anxious hopes for rellel". There was hot
ever a" lull In the exaspcrutlng with?
drawals of gold. On the contrary, they
grew' larger and more persistent than
ever. Iletweon the 4th of December,
JS94. and early In February, 1895, a pe?
riod of scarcely more than two months
after the second reinforcement of our
gold reserve by the sale of bonds. It had
lost by such withdrawals more than
SG9.O0O,OOO. and had f?llen to 141,340,181,
nearly $43,000.000 had been, withdrawn
within the month Immediately preced?
ing this situation. In anticipation of
impending trouble. I had on the 28th
day of January, 189"', addressed a com?
munication to the Congress fully set?
ting forth our dangerous position, and
earnestly recommending that author?
ity be given the Secretary of the Trea?
sury to issue bonds bearing low rate
of interest) payable by their terms in
gold, for the purpose of maintaining a
sullictent gold reserve, and also for the
redemption and cancellation of out?
standing I'nlted States notes and the
Treasury notes issued for the purpose
Of silver under the law of 1890. This
recommendation did not, however, meet
In February; lS0.r>, therefore, the situa?
tion was exceedingly critical. With a
reserve perilously low and a refusal of
Congressional aid, everything Indicated
that the end of gold payments by the
Government was imminent. The results
of prior bond Issues had been exceed?
ingly unsatisfactory, und the large
withdrawals of gold immediately suc?
ceeding their public sale In open mar?
ket gave rise to a reasonable suspicion
that ;i large part of the gold paid Into
the Treasury upon such sales was
promptly drawn out again by the pre?
sentation of United States notes or
Treasury notes, and found Its way t'?
the hands of those who had only tem?
porarily parted it In the purchase
In this emergency and in view of its
surrounding perplexities, It became ne?
cessarily apurent to those upon whom
the struggle for safety was devolved
not only that our gold reserve must, for
the third time in less than thirteen
months, be restored by another Issue
and sale Of bonds bearing a high rate
or Interest and badly suited to the pur?
pose, but that a plan must be adopted
for their disposition, promising better
results than those realized on previous
sales. An agreement was, therefore,
mude with a number or financiers and
bankers whereby it was stipulated thut
bonds described in the resumption act
of 1875, puyable In coin thirty years
after their dates, bearing Interest at
the rule of 4 per cent, per annum, and
amounting to about $52.000,000, should
be exchanged for gold, receivable by
weight, amounting to a little more than
$6;>,om?.00O. Tills gold was to be deliv?
ered In such Installments us would com?
plete Its delivery within about six
months from the date of the contract,
and at least one-half of the amount
was o be furnished from abroad. It
was also agreed by those supplying this
gold thut during the continuance of the
contract they would by every means in
their power protect the Government
against gold withdrawals. The con?
tract also provided that If Congress
would authorize their issue bonds pay?
able by their terms in gold and bear?
ing interest at the rate of 3 per cent,
annually, might within ten days be sub?
stituted at par for the 4 per cent, bonds
described in the agreement. On the day
tills contract was made its terms were
communicated to Congress by u spe?
cial executive message, in which it was
stated that more than sixteen millions
of dollars would be saved to the Gov?
ernment If gold bonds bearing 3 per
cent. Interest were authorized to be
substituted for those mentioned In the
The Congress having declined to grant
the necessary authority to secure this
saving, the contract, unmodified, was
carried otlt, resulting in a gold reserve
amounting to $107,571,2:10 on the Sth day
of July, 1SH6. The performance of this
contract not only restored the reser\ e,
but checked for a time the withdrawals
of gold ajid brought on a period of re?
stored confidence and such peace and
quiet in business circles as were of the
greatest possible value to every Inter?
est that affects our people. 1 have nev?
er had the slightest misgiving con?
cerning the wisdom or propriety of thin
arrangement and am quite willing to
answer for my full share of responsi?
bility for Us promotion. 1 believe It
averted a disaster, the imminence of
which was, fortunately, not at the time
generally understood by our people.
Though the contract mentioned stayed
for a time the tide of gold withdrawal,
Its good results could hot be permanent.
Recent withdrawals hove reduced the
reserve from (107,571,230 on the Sth of
July, 1893, to $79,333,llfiti. How long it
.will remain large enough to render Its
increase unnecessary Is only a matter
of conjecture, though quite large with?
drawals for shipment In the Immediate
I future are predicted In well-informed
quarters. Almut $15.000.000 has been
withdrawn during the month of Novem?
The foregoing statement of events and
conditions develops the fact that in
creasliifr our Interest bearing bonded in?
debtedness more than Jlfi2.oo0.000 to
save our gold reserve we are nearly
where we started, having now in such
reserve $79,333,066, as against SI55.43S.377
In February, 1S94. when the first bonds
were Issued. Though the amount of
gold drawn from the Treasury appears
to be vtery large, as gathered from the
facts and figures herein presented. It
actually was much larger, considerable
sums having been acquired by the
Treasury within the several periods
statPd without the issue of bonds. On
the 2Rth of Jaiiliary, ISO?, It was reported
by tho Secretary of the Treasury that
more than $170,000.000 of gold had been
withdrawn for hoarding or shipment
during the year preceding. Ho now re?
ports that from January 1. 1S79. to July
14. 1890. a period of more than eleven
years, only a little over S28.000.00n was
withdrawn, and that between July 14,
1890, the date of the passage of the
law for nn Incresaed purchase of silver,
and the 1st day of December. 1895, or
within loss than five and a. hnlf years,
therr? wns withdrawn nearly 337:".poo.OuO.
mnklng a total of more thnn $103.000.000
drawn from th? Treasury In gold sine
January 1. Ifc79. the date fixed In 1K7S
for the retirement of the United States
Nearly $327,000.000 of the gold thus
withdrawn has been paid out on these
United States notes: and yet every oOp
of the $346,000,000 Is still uneancelled and
ready to do service in future gold de?
More than $76,000.000 in gold has since
their creation in 1S90, been paid out
from the Treasury upon the notes given
on the purchase of silver by the Cloy
ernment. and yet the -whole, amount In,"
to $155.000,000. except a little more than
$16.000.000, which have been retired by
exchanges for silver at the reauest if
the holders, rernalns outstanding and
prepared to Join their older and more
experienced allies In future raids upon
the Treasury's gold reservek
In other words, the Government has
paid in gold mere than nineteenths or its
United States notes and still owes them'
ull. It lias paid In gold about onc-hulf
of Its notes Riven' for silver purchases
without extinguishing by such payment
one dollar of these notes.
When udded to all this we arc remind?
ed that to carry on this astonishing
llnanciul scheme Ihe Government was
incurred a handed Indebtedness of
$95.500,000 in establishing a gold reserve
nnd of $162,315,400 in efforts to maintain
it; that the annual Interest charge on
such bonded indebtedness is more than
$11,000,000; that n continuance in our
present course may result in further
bund issue und that we have suffered or
arc threatened with nil tills for the
sake of supplying gold for foreign ship?
ment or facilitating its hoarding at
home, a situation Is exhibited which
certainly ought, to arrest attention and
provoke iinmcdltp legislative relief.
I am convinced the only thorough
and practicable remedy xor our trou?
bles is fuunu in the retirement und can?
cellation ot our United stuics notes,
commonly culled (trceubucKK, und Ino
outstanding 'Treasury notes issued by
the Government in payment of silver
purchuse under tho act of 18'JU.
1 believe tills could be quite readily
accomplished by the exchange of these
notes tor United Slates bonus of small,
us well us large, denominations, hear?
ing it low rate ot Interest. Thov should
be long term bonds. Thus Increasing
their desirability as investments, unu
because their payment could be well
postponed to a period Tar removed from
present lliutucial burdens and perpexll
llus, when, with Increased prosperity
und resources, they would be more eas?
ily met. To further insure the cancella?
tion of these notes nnd also provide a
way by which gold may lie added to
nur currency In lieu of them, u feature
in the plan should be an authority given
to the Secretary Of the Treasury to dis?
pose of the bonds abroad for gold if
necessary, to complete the contemplated
redemption and cancellation permitting
him to use the proceeds Of such bonds
to take up and cancel any of the notes
that inny be in the Treasury or that
may be received by the Government un
The increase of our bonded debt In?
volved in this plan would be amply
compensated by renewed activity and
enterprise in all business circles, the
restored confidence at home, the rein?
stated faith In our monetary strength
abroad, and the stimulation of every?
thing, interest and Industry that would
follow the cancellation of the gold
demand obligation now ulllictlng us.
In any event the bonds proposed would
stand for the extinguishment of a trou?
blesome Indebtedness, while Iii the path
we now follow there lurks the menace
of unending bunds, with our Indebted?
ness still undischarged and aggravated
In every feature. The obligations ncces
Bory to fund this Indebtedness would
not equal In amount those from which
wo haVii been relieved since ISM, by an?
ticipation and payment, beyond the re?
quirements of the sinking fund, out
of our surplus revenues.
The currency withdrawn by the retire?
ment of the United Slates notes and
Treasury notes, amounting to probably
less than $186,000,000. might be supplied
by such gold as would be used on their
retirement or by an Increase in the cir?
culation of our National banks.
Though the aggregate capital of those
now in existence amounts to more than
$061,000,000, their outstanding circula?
tion based on bond security, amounts to
only about JlsO.tHlO.OOO: they are author?
ised to issue notes amounting to nine?
ty per cent, of the bonds deposited to
secure their circulation, but in ltd event
beyond the amount of their capital
stock, and they tire obliged to' pay one
per cent, tnx on the circulation they
I think they should he allowed to is?
sue circulation equal to the pur value
of the bonds they deposit to secure it,
and that the tux on their circulation
should be reduced to one-fourth of one
per cent., which would undoubtedly
meet all the expense the Government
Incurs on their account. In addition
they should be allowed to^substlttlte or
deposit In lieu of the bonds now re?
quired as security for their circulation
those which would be issued for the
purpose of retiring the United Slates
notes and Treasury notes.
The banks already existing, if they
desired to avail themselves of the pro?
visions of law thus modified, could is?
sue circulation In addition to that al?
ready outstanding, amounting tn $478,
000.000. which would nearly or quite
equal the currency proposed to lie can?
celled. Al any rate. 1 should confident?
ly expect to see the existing National
banks or others to he organized avail
themselves of the proposed encourage?
ments to issue circulation, and prompt?
ly fill any vacum and supply every cur?
It has always seemed to me that the
provisions of law regarding the capital
of National banks which operate as a
limitation to their location, fails to
make proper compensation for the sup?
pression of state banks, which came
near to the people In all sections of the
country and rendi'-- furnished them with
hanking accommodations and facilities
Any Inconvenience or embarrassment
arising from these restrictions on the
location of National banks might well
be remedied by belter adapting the
present system to the creation of i>-mks
In smaller communities, or by permit I lug
barks of Inrpe capital to establish
branches In such localities hj, would
serve the people, so regulated and re?
strained ns to secure their safe and con?
servative control and management.
T3ut there might not ho the necessity
for such an addition to the currency by
new Issues Of bank circulation as at lirst
glance is Indicated. If we should be re?
lieved from maintaining a gold reserve
under conditions that constitute it the
barometer of our solvency, and if our
Treasury should no longer h? the fool?
ish purveyor of gold for nations abroad
or for speculation and hoarding by our
citizens at home, I should expect tn see
gold resume Its natural and normal
functions in the business affairs of tin
country and cease to h*? an object at?
tracting- the timid watch of oiir people
and exciting their sensitive Imnglna
I do not overlook the fact that the
cancellation of Treasury notes Issued
under the sliver purchasing act of 1630,
would leave the Treasury In the actual
ownership of sufTlelent silver. Including
seigniorage to coin nearly $178.000,000
in standard dollars. It is worthy of
consideration whether this might not,
from time to time, be converted to dol?
lars or fractional coin and slowly put
Into circulation, as In the judgment of
the Secretary of the Treasury, the neces?
sities of the country should require.
Whatever is attempted should be en?
tered upon fully appreciating the fact
that by can-less, easy descent we have
reached a dangerous depth. nn'd 'imt
our ascent will not be accomplished with
laborious toll and struggle. We shall bo
wise if we realize that we are financially
111 and that our restoration to health
Sil at myf . .
!liorl. wf an? un"
f thc;T?, ? h
?ant'r* llow tno
.1 ,*relpta directly
Bs*' ,t question is
Pfhcy received in
.it the kind ot
lid our ability.
In our present predicament no Bold is
received by the Government In payment
of revenue charges, nor would there Oc
If the revenues were Increased the re?
ceipts of the Treasury, when not In sll
ver certificates, consist of United States
notes and Treasury notes Issued for
silver purchases. Those forms of
money are only useful to the Govern?
ment In paying its current ordinury
expenses and its quantity In Govern?
ment possession docs not In the least
contribute towards Riving us thai kind
of sure financial standing or condition
which Is built on gold nlone.
If it Is snld that these notes If bold
by the Government can be used to ob?
tain gold Tor our reserve, the answer Is
easy. The people draw gold from the
Treasury on demand upon United States
notes an*l Treasui? notes, but the pro?
position that the Treasury can on de?
mand draw sold from the people upon
them would be regarded In these days
?with wonder and 'amusement. And
even If this could be done, there Is noth?
ing to prevent those thus parting with
their gold from regaining it the next
day or the next hour, by the presenta?
tion of the notes they received in ex?
change for it.
The Secretary of the Treasury might
use stiel? notes taken from a surplus
revenue to buy gold In the market. Of
course, he could not do this without
paying a premium. Private holders of
gold, unlike the Government, having
no parity to maintain, would not lie re?
strained from making tb^ best bargain
possible when they furnish gold to the
Treasury, but tlto moment the secretary
of the Treasury' bought gold ph any
terms above par he would establish i.
general and universal premium upon it,
thus breaking down the parity between
gold and silver which the Government
Is pledged to maintain, and opening the
way to new and serious complica?
In the meantime the premium would
not remain stationary, and the absurd
spectacle might be presented of a
dealer selling gold to the Government,
and with United Stales notes or Trea?
sury notes In his hand Immediately
clamoring for Its return, and a resale at
a higher premium. It may be claimed
that a huge revenue and redundant re?
ceipts might favorably affect the situa?
tion under discussion by affording an
opportunity of retaining these notes in
the Treasury when received, and tints
preventing their presentation for gold.
Such retention to lie useful ought to
lie at least measurably permanent, and
this is precisely what Is prohibited, so
far as United States notes are concern?
ed, by the law of 1S7S, forbidding their
further retirement. The statutes in so
many words provides that those notes
when received Into the Treasury and
belonging tu the United Slates, shall
be '.'paid out asaln and kept In circula?
tion." It will, moreover, be readily seen
that the Government could not refuse
to pay out United Stales notes and
Treasury notes in current transaction
When demanded and Insist on paying
out sliver alone, and still maintain tile
parity between that metal dnid the cur?
rency representing gold. Besides, the
accumulation In the Treasury of cur?
rency of any kind exacted from the peo?
ple through taxation is justly regarded
us an evil, and It cannot proceed, for
without vigorous protest against an un
Justlllablc retention of money from the
business of the country, and a denun?
ciation of a scheme of taxation which
proves Itself to be unjust when it take s
from the earnings nnd income of the
citizen money bo much In excess of the
needs of Government support, that
large sums can be gathered and kept
in the Treasury. Such n condition has
heretofore in times of surplus revenue
led the Government to restore currency
to the people by the pun-base of its
unmanned bonds at u large premium
and by a large increase of its de posts ts
In national banks, and we easily re?
member that the abuse of Treasury ac?
cumulation has furnished a most per?
suasive argument In favor of legislation
radically reducing our tariff luxation.
Perhaps It is supposed that suillcient
revenue receipts would in a sentimental
way improve the situation, by inspiring
confidence In our solvency and allay?
ing the fears of pecuniary exhaustion.
And yet, through all our struggles to
maintain our gold resrve, there never
has been any appreciation as to our]
ready ability to pay our way with such
money as we had; and the question
whether or noi our current receipts met
our current expenses has not entered
Into the estimates of our solvency. Of
course tin- general state of our funds,
exclusive of gold, was entirely immate?
rial to the foreign creditor and investor,
ills debt could only be paid in gold,
and his only concern was our ability
io keep on hand that kind of money,
tin July 1. IS'.'.-, more than a year and
a half before the first bonds wi-ri- Issued
to replenish the gold reserve, there was
a net balance in the Treasury, exclusive
of spelt reserves, of loss than $13,000,
oo.o but the gold reserve amounted to
more than $114,000,000, which was the
quieting feature of the situation. It
was when Ho- stock of gold began rap
Idly to fall that fright supervened and
our securities held abroad were return?
ed for sale ami debts owed abroad were
pressed for payment. In the meantime
extensive shipments of gold and other
unfavorable indications emitted rest?
lessness and fright among'ourpeople at
home. Thereupon the general state of
cur funds, exclusive of gold, become
also immaterial to them, anil they, loo,
drew gobl from the Treasury for hoard?
ing against all ebntigencies. This is
plainly shewn by the largo Increase
in the proportion of gold withdrawn,
which was retained by our own people
as lime and threatening incidents pro?
gressed. Dining the fiscal year ending
Juno 30. 1894, nearly $485,000,000 In gold
was Withdrawn from the Treasury, and
about $477,000.000 was sent abroad, while
during the llsenl year ending June SO,
IS!?."., over $117,000.000 wni withdrawn,
out of which only about $66,00,000 was
shipped, leaving the large balance of
such withdrawals to be accounted for by
Inasmuch as the withdrawal of out
gold has resulted largely from fright,
there Is nothing apparent that will pre?
vent Us continuance or recurrence, with
its natural consequences, except such a
Change in our financial methods ns will
reassure the frightened and make the
desire for gold less Intense, it |s not
clear how an increase In revenue.unless
It be gold, can satisfy those whose
only anxiety is to gain gold from the
Government's store, it cannot, there-?
fore, be safe to rely upon Increased
revenues us a cure for our present
It Is possible that the suggestion of
Increased revenue as a remedy for the
difficulties we arc considering may hnve
originated in an intimation or distinct
allegation that the bonds which have
been Issued ostensibly to replenish our
gold reserve were'realiy issued to sup?
ply insufllotent revenue. Nothing can
be further from the truth. Bonds
were issued to obtain gold flor the
maintenance of our national credit. As
has been shown, the gold thus obtained
lias been drawn again from the trea?
sury upon United States notes and
treasury notes. This operation would
have been promptly prevented, possi?
bly, but these notes having thus been
passed to the treasury, they became the
money of the Government, like any
other ordinary government funds, and
thero was nothing to do but to use
them In puylng the expenses of the gov?
ernment when needed. At no timewhen
bonds have been Issued has there been
any consideration of the question of
paying the expense of government with
their proceeds. There was no necessity
to consider that question. At the time
of each, bond issue we had a safe .sur?
plus In tile trensury for ordinary ope?
rations, exclusive of the gold In our
reserve in February, 1894, when the
first issue of bonds was made. '
Such surplus amounted to over $18,
000,000; in November, when the second
issue was made, It amounted to more
than $12.000,000, and In February, 1S95,
When bonds for the third year were
Issued sucli surplus amounted to more
than $10,000,000. It now amounts to
Besides all this the Secretary of the
Treasury had no authority whatever
to issue bonds to increase the ordinary
revenues or pay current expenses.
1 cannot but think there has been
some confusion of ideas regarding the
effects of the Issue of bonds and the
results of the withdrawal of gold.
It was tlio latter process nnd not the
former that by substituting In the trea?
sury United States notes and treasury
notes for gold, lncrensed by their
amount the money which was In the
first Instance subject to .ordinary gov?
Although the law compelling an In?
creased purchase of sliver by the Gov?
ernment was passed on the 14th day
of July. 1890, withdrawals of gold from
the treasury upon the notes given In
payment on such purchases did not be?
gin until October, 1891. Immediately
following that dato the withdrawals
upon both these notes and United States
notes Increased very largely, and have
continued to such an extent that since
the passage of that law there has been
more than thirteen times as much
gold taken out of the treasury upon
United States notes and treasury notes
Issued for silver purchases as was thus
withdrawn during the eleven and a
half years Immediately prior thereto
and after the 1st day of January, when
specie payments were resumed.
It is neither unfair nor unjust to
charge a large share of our present
financial perplexities and dangers to
the operation of the laws of 1S78 and
1890, compelling the purchase of silver
by the government, which not only fur?
nished a new treasury obligation upon
which its gold could be withdrawn,
but so increased the fear of an over?
whelming flood of silver nnd a forced
descent to silver payments that even
the repeal of these laws did not entire?
ly cure the evils of their existence,
While I have endeavored to make a
plain statement of the disordered con?
dition of our currency and the present
dangers menacing our prosperity, and
to suggest a way which tends to a
safer financial 'system, 1 have con?
stantly had in mind the fact that many
of my countrymen, whose sincerity 1
do not doubt insist that the cure for the
Ills now threatening us may be found
In the single and slmyle remedy for tin
free coinage of silver. They contend
that our mints shall be at once thrown
open to the free, unlimited, and In?
dependent coinage of both gold and
silver dollars of the full legal tender
quality, regardless of the action of any
oilier government, and In full view of
the fact that the ratio between the
metals which they suggest calls for
one hundred cents' worth of gold In
the gold il?.liar of the present standard,
and only lll'ly cents In Intrinsic worth
of silver in the silver dollar.
Were there infinitely stronger reasons
than can be adduced for hoping that
such net ion would secure for us a bi?
metallic currency moving on lines of
parity, an experiment so novel and
hazardous as. that proposed might well
stagger those who believe thnt stability
Is an Imperative condition of sound
No Government, no human contri?
vance or act of legislation has ever
been able to hold the two metals to?
gether in free coinage at the ratio ap?
preciably different from that which is
established in the markets of the world.
Those who believe that our independ?
ent free coinage Of silver at un artifi?
cial ratio with gold of lfi to 1, would
restore the parity between the metals,
ijbld consequently between the coins,
oppose an unsupported and improbable
theory to the general belief and prac?
tice of other nations, nnd to the teuch
ing of the wisest statesmen and econo?
mists of the world, both In the past
and present and what Is far more con?
clusive they run counter to our own
Twice in our early history our law?
makers in attempting lo establish a
bimetallic currency undertook free
c.ilnage upon a ratio which accidentally
varied from the iictunl relative value's
of the two metals not more than three
per cent. In both cases, notwithstand?
ing greater difllcutttcs and cost of
transportation than now exist, the
coins Whose Intrinsic worth was under?
valued tu I he ratio, gradually and sure?
ly dlBopenred from our circulation and
went to other countries, where their
real value was better recognized. Acts
of Congress were- Impotent to create
equality where natural causes decreed
even a slight Inequality.
Twice in our recent history have we
signally failed to, raise by legislation the
value of silver. Under an act of Con?
gress passed in 1S78 the government was
required for more than twelve years to
expend annually at least $24,000,000 in
the purchase of silver bullion for coin?
age. The act of July 14. 1K00, in a still
ladder effort, increased the amount of
sliver the government was compelled
to purchase, and forced It to become the
buyer annually of 54,000,000 ounces, or
practically the entire product of our
mines-. Under both laws silver rapidly
declined In value. The prophecy and
the expressed hope and expectation of
those In the Congress who led In the
passage of tho last mentioned not,
that It would re-establish and maintain
the former parity between the two met?
als, are still fresh in our memory.
In the light of these experiences,
which accord with the experiences of
other nations, there is certainly no se?
cure ground for tlie belief thnh nn act
Of Congress could now bridge an In?
equality of fifty per cent, between gold
and silver at our present ratio, or Is
there the hast possibility that our
country, which has less than onp
sevetith of the silver money In the
world, could by Its action alone raise
not only our own, but all silver to lta
lost ratio with gold. Our attempt to
accomplish this by the free coinage of
silver at a ratio differing widely from
actual relative values would be-the sig?
nal for the complete departure of gold
from our circulation, the Immediate
and large contraction of our circulating
medium, and a shrinkage in the real
value and monetary efficiency of all
other forms of currency as they settled
to the level of sliver monometallism.
Every one who receives a fixed salary
and every worker for wages would find
the dollar In his hand ruthlessly scaled
down to the point of bitter disappoint?
ment, If not to pinching privation.
A change In our standard to silver
monometallism would also bring on a
collapse of the entire system of credit
which, when based on a standard which
Is recognized and adopted by the world
of business, Is many times more potent
and useful than the entire volume of
currency, and Is safely capable of al?
most Indefinite expansion to meet the
growth of trade and enterprise. In a
self-invited struggle through darknesB
and uncertainty our humiliation would
be increased by the consciousness that
we had parted company with all the en?
lightened and progressive nations of the
world, and were desperately and hope?
lessly striving to meet the stress of
modern commerce nnd competition with
a debased and unsuitable currency and
in association with the few weak and
laggard nations which have silver
alone as their standard of value.
All history Warns us against rash ex?
periments which threaten violent
changes In our monetary standard and
the degradation of our currency. The
past is full of lessons teaching not
only the economic dangers, but the na?
tional Immorality that follows in the
train of such experiments. I will not
believe that the American people can
be persuaded after sober deliberation
to jeopardize their nation's prestige and
proud Mending by encouraging finan?
cial nostrums, nor that thev will yield
to tha false allurements of cheap money
when they realize that it mu'st result In
the weakening of that flnanctal Inte?
grity and rectitude which thus far In
our history has been so devotedly cher?
ished as one of the traits of true Ameri?
Our country's Indebtedness, whether
owing by the Government or existing
between Individuals, has been con?
tracted with reference to our present
standard. To decree by act of Congress
that these debts shall be payable in
less valuable dollars than those with?
in the contemplation nnd intention of
the parties when contracted, would
operate to transfer, by the flat of law of
without compensation, an amount of
property and. a volume of rights and In?
terests almost Incalculable.
Those who advocate a blind and
headlong plunge to free coinage In the
name of bimetallism and professing the
belief, contrary to all experience, that
we could thus establish n double stand?
ard and a concurrent circulation of both
metals In our coinage. are certainly
reckoning from a cloudy standpoint.
Our present standard of value Is the
standard of the civilized world and
permits the only bimetallism now possi?
ble, or, nt least, that is within the In?
dependent reach of any single nation,
however powerful that nation may lie.
While! the value of gold as a standard
Is steadied by almost universal com?
mercial and business use. It does not
despise silver nor seek its banishment.
Wherever this standard Is maintained
there is nt Its side in free and unques?
tioned circulation a volume of silver
currency,sometimes equaling and some?
times even exceeding it In amount, both
maintained at a parity, notwithstand?
ing a depreciation or tin.?nation in the
Intrinsic value of silver.
There is a vast difference between *a
standnrd of value nnd a currency for
monetary use. The standard must nec?
essarily be fixed, and certain. The cur?
rency may he in divers forms and of
various kinds. No silver standard coun?
try has a gold currency in circulation,
but an enlightened and wise system of
finance secures the benefits of both gold
and Bllver ns currency, and circulating
medium by keeping the standard stable
and all other currency at par with it.
Such n system and stich a standard
also gives free scope for the use and
expansion of safe and conservative
credit, so Indispensable to broad and
growing commercial transactions, nnd
so well substituted for the actual use
of money. If fixed nnd stable Standard
is maintained, such as the magnitude
and safety of our commercial transac?
tions nnd business requires, the use of
money Itself Is conveniently minimized,
every dollar of fixed and stable value
has. through the agency of confident
credit, an astonishing capacity of mul?
tiplying itself In financial work every
unstable and fluctuating dollar falls
as a basis of credit, nnd in Its use begets
gambling speculation and undermines
the foundation of honest enterprise. 1
have ventured to express myself on
this subject with earnestness and plain?
ness of speech because 1 can not rid
myself of the belief that there lurks
In the proposition for the free coinage
of silver so strongly approved and so
enthusiastically advocated by a multi?
tude of my countrymen, a serious me?
nace to our prosperity and tin Insidious
temptation of our people to wander
from the allegiance they own to public
and private integrity. It Is because T
do not distrust the good faith and
sincerity of those who press this scheme
that I have imperfectly, but with zenl.
submitted my thoughts upon this mo?
mentous subject. I cannot refrain from
begging them to re-examine their views
nnd beliefs in the light of patriotic rea?
son and familiar experience, and to
weigh ngnin nnd ngaln the consequences
of such legislation ns their efforts have
Invited. Even the continued agitation
of the subject adds greatly to the dlili
cnlties of a dangerous financial situa?
tion already forced upon us.
In conclusion I especially entreat the
people's representatives In the Congress
who are charged with the responsibil?
ity of Inaugurating measures for the
safety nnd prosperity of our common
country to promptly and effectually con?
sider the Ills of our critical financial
plight. I have suggested n remedy
which my judgment approves. I desire,
however, to assure the Congress that
T tini prepared to co-operate with them
hi perfecting nny other measure pro?
mising the rough nnd practical relief,
and thnt I will gladly labor with them
In every patriotic endeavor to further
the interests and guard the welfare of
our countrymen, whom In our respec?
tive pinces of duty we have undertaken
(Signed) GMOVER CLEVELAND,
December 2. 1S95.
AVCTIOX RAI.EH-FrTVllE DAY.
Ity J. II. Vilmtlne. General Auctioneer;
It. R. Morris, Assistant, 38 Hank St.
t AltOR TRADE RALE AT OUR AUC
L tlon rooms on THURSDAY MORN?
ING, Deaomber the Cth. nt 10 o'clock, of
Dry Goods. Clothing, Notions, Hosiery,
lints. Shoes, lot Enncy Goods, Toys. etc.
J. H. VALENTINE, CJcn'l Auct.;
R. R. MORRIS, Assistant. del-2t
AUCTION HALEN?FUTURE DAY.
By Win. M. Hunnah. Auctioneer.
By virtue of n decree entered on the
29th doy of November. 1893. in the Court
of Law and Chancery for the city of Nor?
folk, in a certain suit therein now de?
pending, under the Btvle of Fanny Guy,
et als., vs. Hattle Gray, Infant, et als.,
the undersigned Special Commissioner
will offer for sale nt the Real Estate Ex?
change, In the city of Norfolk, on the
12th day of December, 1S95. nt 12 o'clock,
m., the following property? To-wit:
ALL THAT CERTAIN LOT OF LAND,
with Improvements thereon, situate and
being on the East side of Magazine lane,
fronting thereon 25 feet and running back
between parallel line toward Granby
street extended one hundred and ten feet.
W. B. BARTON.
Wit M. HANNAH,
I hereby certify that the bond required
by the above mentioned decree has been
executed. JUN1US A. COLEMAN.
By H. L. Page & Co., Real Estate Auc?
tioneers, No. JC Dunk street.
PURSUANT TO THE FOLLOWING
deeds of trust, duly- recorded In the
Clerk's office of Norfolk county, Vn., und
at the request of the creditor therein se?
cured, I will S?ll at public auction at the
Norfolk Real Esti.te nnd Stock exchange.
No. 115 Main street. Norfolk, V.l., at 12
o'clock m. THURSDAY December 6th,
1895, the following property, to-wit:
First?ALL THAT CERTAIN FRAME
HOUSE AND LOT, situated on the north
side of Corprew avenue, between Railroad
and Cecelia avenues. Raid lot Is 24x97'/;
feet to 10-foot lane. House eontnins i
rooms. Deed of trust made by W. L.
Roberts and wife by deed dated July 2d,
1S92, and duly recorded In deed bouk 171,
Second?ALL THAT CERTAIN LOT OF
LAND, situi'.ted on the south side of L"e
street, between O'Koefe and Hunter
streets. Said let Is 30x105.' House con?
tains 7 rooms. Deed of trust made by
Chas. H. Robinson and wife, by deed
dated August 23d. 1WO, and recorded In
deed book 191, pngu 092.
TERMS?One-third cash: balance in one
and two years nt ?! per cent. Deeds of
tiust drawn nnd recoidcd ul the expense
of the pursh&'ser.
GEO. W. DEV.
TH. L. PAGE &- CO.,
John C. Nlemeycr, Auctioneer.
p OMMISSIONER'S SALE OF A VAL
By virtue of a decree entered on the.
22d day of November, 1VJ5, In the Circuit
Court of Norfolk county. In a certain
Cause In Chancery therein now depending,
wherein Charles Held & Son, who sue,
etc., are plaintiffs, and Mnrcurcl S. Wll
klns, ct at., are defendants, the undersign?
ed special commissioner ?vlll oiler for sale
ut public auction o>: THURSDAY, the
5th day of December, at* 12 o'clock
m.. In front of the Norfolk eountv court?
house. In the city of Portsmouth, Va.,
the following property, to-wit:
THAT CERTAIN TRACT OF LAND,
containing acres, more orli-ss,lying on
the Seweu's Point road. In the county of
Norfolk, and adjoining the lauds of Hen?
ry Tnlbot, Mrs. Louisa Ciirnon, and others,
being the same upon which W. Henry
Wlllilns real led nt the time of bis death.
Further Information as to I lie lines of
said land will be furnished upon appli?
cation to the undersigned.
Terms: One-third casb: lmlnr.ee In or.a
and two y-;arv. deferred payments to bear
Interest at the rale of (> pi r centum per
i.nmini, and to be secured by deed of triu>t
to be drawn and recorded ni expense
of the purchaser, who on compliance with
the terms of sale shall be entitled to re?
ceive a conveyance of the premises witb
special ?'. warranty of title, put chaser t.i
be at liberty to anticipate any or all of the
I, T, M. BMvestcr, clerk of the Circuit
Court for Norfolk county, do certify that
bond required In the above described suit
lias been duly given.
L. M. SILVESTER. Clerk.
Nov. 22, 15*5. ho 23-tdS
JOHN C. N1EMEYER,
By Sharp & Gwalhmey.
FARM NEAR THE CITY
By virtue or the power vested In me by
the last will and testament of Sarah A.
M. Turner, dc?nsed. nnd in pursuance of
tbe decree construing said will, entered
by the Circuit Court of Norfolk county,
I nt the Scptemhei term, 1MI5, In ihe chan?
cery suits of the Citizens' Rank of Nor?
folk, Vn., vs. E. It. Tallin and others,
nnd of L. Hnrhtauson, i xeeutbr, etc., vs.
Virginia E, Trowcr and others, l sind,
as executor or the said fin rah A. M. Tur?
ner, sell at public auction nt the Real
Estate Ex.'hange. II"- Main Street, in the.
if Norfolk, al noon on THURSDAY,
the 5th day of December, 1S9S, to the high?
est bidder, the tract of land, vvltll the im?
provements thereon, known as tin
"TAT EM FARM." beautifully located
on the Eastern llranli of ihc Elizabeth
.. and being nol mere than two
miles nnJ by tumplke and not exceeding
?ine mile by water route from -aid city;
and is supposed to contain thirty acres,
more or lew, and Is bounded on the north
by tbe said Eastern Branch, on the east
bv the land of It. F. Wilson, on the south
b'v Indian River Tnrnplko, nnd on the
West by the land of \. J.' Newton. The
said property will be sold in ?rosa and
not by tlie acre.
TERMS: Three Ihousnnd dnllr.ro of
Ihr purchase money to be paid In cash:
the balance In two equal InsKUlUCnts.CVl
di need by the bends of the pnrcl -si r,
payable to hie ns executor, the lirsi in
six months and the other in twelve
months fr.im the day Ol ?nie, und carry?
ing Interest from the 1st of January,1896.
When tl>" term of the present lennnt will
nxplro; and a deed ot trust nt the expense
of the pur.-h.iser will be required to se?
cure the deferred payments: or the pur?
chaser mny pay the whole purchase
money In cash.
L. 11 A if M ANSI IN".
Executor of Sarah A., M. Turner, de
SHARP & GWATHMEY.
November 12, 1S96. no2l-ti's
r RUSTEE'S SALE.
By virtue of an assignment dated No
eniber 30, 1895, from Hella lloflbn to
inc. I have taken charge <>l the property
lheroin conveyed, at No. 162 Main street.
Norfolk. Vn., and tbe books of account or
said Bella llofllin. I sball continue to
I sell I ho goods In nald store at retail iiulil
further notice. All persons Indebted to
Said Bella iiorfiin will make payment
to me, or to Mr. L. Lochmnn, at said
store. All creditors of said Bel in Hof
flln will file their claims with me, duly
I sworn to within the next ninety days.
By H. c. Hogg.ird & Co.. Auctioneers.
BY REQUEST OF THE OWNER WE
will sell at public auction, at the Nor?
folk Real Est ate and Stock Exchange.No.
115 Main street, Norfolk. Vn., at 12 o'clock
Im., THURSDAY; December Ihc 5th, I$95,
the following property to-wit! Those si?;
ertnlii lots known and numbered on
'Hunter's Plot" as follows: 84,61; l!3 dntL.
t',7 on avenue B, and 26 and 2S on Hunter
street, near the corner of avenue |l, which
smut plat Is dulv of record In the Clerk'?
nflice of Norfolk county, said loin bcinjt
located In the village' of II uiilei svllln.suid
H, C. HOGGARD & CO.,