OCR Interpretation

Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, December 06, 1895, Image 3

Image and text provided by State Historical Society of Iowa

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn88059319/1895-12-06/ed-1/seq-3/

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Harness and
The largest and. best assortment of
all goods in this line in the city,
including such seasonable
goods as
arnesses made to order by exper
ienced woi kmen from the best
material procurable.
of all kinds a specialty.
jpfln Centennial Block,
SS" Oresco, Iowa.
0% Chleheatcp'a Eucllfth Diamond Brand*
fWGN Original and Only A
braircist for Chichcster Eiwliah 2)fa-iS|\
Kmowf Brand In Kcd and C'old tuctMUo\\j*Sr
Bboxes, uralod villi blue ribbon. Tako VS/
{no other* Jt/fiu* dewytnyu* mbstitu
ftiona and imitations. Druggtat*, or tend 4c«
'la atunps for parttculnra, tcstimooUla And
Relief for
in Utter, bj return
HT muiL 10,000 Tvntinionials, A'«tne Jiiptr,
Chichester (JhonUcaICu..liailUonMqttMra
60M hj
All Local JDrufciiu. FJtUoda.. IV
tot to
Cl#aDt«f and bcantiflcs the hair*
Promotes a loxuriant growth.
Never Fails to Bestore Gray
Hftir to Its Youthful Color.
Cuics scalp ditto** a hair falling.
gOc.and 81.00 at Pruffirti
'"By borough knowledge of the natural
laAvaw' .'govern the operations or digestion
.ttndn „lon, and by a careful application of
properties nf well-selected Cocoa. ir.
Epps has provided for our breakfast and supper
a delicately flavored beverage which may save
us many heavy doctors' bills. It Is by the judi
cious use of such artlclcs of diet that a consti
tution may be gradually built up until strong
enough to resist every tendency to disease.
Hundreds of subtle maladies are floating
around us ready to attack wherever there Is a
weak point. We'may escape many a fatal shaft
b.v keeping ourselves well fortltled with pure
blood ana a properly nourished frame, —civil
Service Gazette, Made simply with boiling
water or milk. Sold only in half-pound tins, by
Grocers, labelled thus:
JAMES EPFS & CO., Ltd., Homoepathlc Che
mists, London, England.
I W. STROTHER, Proprietor,
0&K800, IOWA.
tai only IMMui HOUM In Creaoo. Itf
Goal, Wood, Posts,
Linie, Cement.
Oalaw's Stand, Cresco, Iowa.
2000 LBS.
For a Ton Every Timet
Quality, Honest Weight and Aoourate
Measurement Guaranteed. V?/
Attorney and hunselor-at-Law.
tyrlo Hmll Block.
Ones with W. K. Barker, In Union fi.Tlnfi Bank
Physician and Surgeon,
OOo* over Connojlr'g drug store. Re»W
denoe with Mi
s. Jno. McOook.
vol.85 no.il.
Oresoo, Xowa.
All operations rend'-red painless by the us
•f Aerated Hjipnotlo or Pure Narcotized Air,
the best and safest un.ih.Ug known to tht
MUatlfl. world. IW
We Do The.
While sorno stand with hand in pocket
and inflate. ».
We Have the Trade, Lead in Prices
and Have a Life's Experience.
-.f Yours in Harness, -vvir^..
-•y 7
Miller & Cummjngs
A A. oomrmaK, rmMnt.
LESS, Vlee-PrMldMt.
O. A. CRAWFOBD, Casbtor.
Safety Deposit Boxes to Rent.
H. W. TOTJHS, Oaafclsc
Recoivea Deposits, and Makea P»l
Ban aad Bells Bxckanye,
and ether
jeearlUaa and dosM
Joiutes com*
a»«eiam«nt Wonds
Drafts on Eur opt for Sale.
Improved and Unimproved Real
Estate Bought and Sold
an Commission.
Paasaf Tickets at Reduced Rate*.
Loan and Trust Co.,
B. T.
President and Treai.
8. •.
Vice Pres.
M. B.
•wae* aad Proprietor .( Ik. Only Can.
Boward O.natjr.
Abstracts of Title to Land* and Towa
Lots furnished on short notice.
Speoial advantages for making Farm
Loans and selling Real Estate.
Has again assumed full oontrol of
Oar Term if contiBie to lie Casl
[n Baying and Balling. We take pleasure
tai referring to the patrons of this market
and aasnre them that we shall keep a fall
stock Of
Fresh and Salt Meats.
Poultry in its Season,
Gash paid for Fat Cattle, Sheep,
Calres suitable for Market.
Centennial Block. CREKCO, 10.
Wentwortli & Enrigbt
Are making a specialty of
Where fine work is required—such as
track and carriage horses.
A new tire shrinker will enable as
to give speoial attention to setting
Wagon tire. General blaoksmithing
«r(U have prompt attention. 88tf
A. BAKltETT, H. D„ C. U.
Special attention to Surgery. Office over
Clemmer's Drug Store. Office open night aad
day. 40-tf
QR,a.H. KstiLoaa,
All work In his line will have prompt aad
earaful attention. Olfio. aver Wuu a Moon'«
stora. Ml-tt
J'Ollzx MoOOOk
Will praotloe la all the courts of the states,
make loans, and attend to buylnir and selling
real estate and seourittes.
Offloe over Cresoo Union Savings Bank.
W. K. BABKKR. C. C. Urto*.
Will practioe in all State and Federal Courts
The- Park Hotej
Now thoroughly renovated and refuriilsliep
throughout, and with new proprietors is fully
equipped to provide for the wants and comfort
of the traveling public.
With Its clean rooms, sweet and wlioiesom
beds, anil Its well supplied table, its proprieto
iiapes to inerlr and receive his share of publ
J. McGinness, Prop.
Wm Woodward
Justice of the Peace,
Cresco, Iowa.
Offloe in the Berg Block with J.
Webster. Prompt attention given to
matters entrusted to him.
People should realize that tie only
V-V%trae and permanent cure lor thelt
condition is to be found in having
Pure Blood
Because the health of every organ and
^tissue of the body depends upon the
parity of the blood. The whole world
-know* the standard blood purifier la
And therefore it is the only true and
reliable medicine for nervous people.
.It makes the blood pnre and healthy,
and thus curee nervousness, makes
the nervee firm and strong, gives sweet
sleep, mental vigor, a good appetite,
'. perfect digestion. It-does all this, an3
cures Scrofula, Eczema, or Salt Hheum
and all other blood diseases, because It
Pure Blood
,Results prove every word we have
said. Thousands of voluntary testi
monials fully establish the fact that
Delmar, Iowa.
Hood*s Pills
Be Sure (^\XTQS
to Get Hood's
"I could not sleep. I took three
bottles of Hood's Sarsaparllla and felt
entirely well." WILLIAM JOHNSON,
ness, headache. SSc.
—the finest we have
yet published—
100 pages, pro
fusely illustrated.
It will tell you all
about the new
Fall and Winter
Styles in Men's and
.. Boy's' Clothing,
Hats, Furnishing
Goods, Shoes and
Ladies' Cloaks.
and will be sent
free of charge.
The World's Largest Clothing Store,
Stato and Jackson St.,
to bay Farms In
Land Is on the North*
weettiro line C. StP.
& O. R'y, about 200
miles from Milwau*
kce and a littlo North,
In Clark County. This
laone of the bestcoun*
ties la the 6tate, baring a population of over 25,000.
I^and lies adjoining railroad, and does not extend
»vcr six miles from it at any point, and is from four
io ten miles from the County Scut, which has nearly
i.OOG inhabitants and iaquiteamanufacturtngccnter.
well supplied with excellent,
water and best
of fuel
Good schools. Why rent a farm or buy an improvod
one? Buy one unimproved and make the profit.
CDCC TIPIfCTC np to 120 allowed purchasers
mU IIWIVCI« of 80 acres or more of land
one-half fare to those buying40 acres,if R.R. tickets
are bought of us or you have a receipt showing
amount paid.
Only $5 to 110 per
acre. |3 per acre cash, balance five years' time.
We want 25 amiliesf rom this place 1 Will you help
us? Big inducements to those moving beforo May
iS95. Write for particulars. Agents, surveyors ana
learns on hand to show the property freoofcost.
Buy your tickets to Columbia, wis., via Uenulan
'flit 0.8.0R1TKS USD CO.. R. 311,55 Fifth An., Chicago, ill
been made for young people which compares in
value, or hast had one-tentn the sale of this great
annual. Millions of copies have been
•old. The new volume for 1693-^ is just ready,
and has over 200 large and entirely new pictures,
several new ttories, (each a book in itseli), and
hundreds of short stories, anecdotes, etc. The
best Xmas present possible for boys and girls of
all ages. Order from your bookseller or ol us,
ESTES & LAUR1AT, Publishers, Boston.
Overproduction Is bad when market, are out of
reach. Hlgors of winter destroy health. History
repeats Itself and drought follows the year of
Plenty. Oo to Virginia, within a few hours by rail,
or water, of the greatest market, of America—
Washington, Baltimore, Philadelphia. New York,
and Boston. Virginia is free from excessive heat
in summer and cold in winter. Government
records show an even rainfall throughout the year.
FertOe farms from $3.00 per acre up. Land-seekers
excursions via Chesapeake & Ohio Railway, Sec.
sand 17. Send for pamphlet on profitable farming
In Virginia to c. B.
Ass't General Passenger
Agent C. A O. R'y. Cincinnati, O.
In the District Court, Howard County, Iowa
In the matter of the "guardianship of chas. A
Thompson, Isabella A. Thompson, Geo. Hun
son, Asluk LIunSon una Betsy l'eler.son, minor
heirs or Aslak Thompson, deceased minor.
To the parties above mi mod and to Joseph
Peterson, fitlher ol Betsy Peterson:
You and each of you are hereby uotllled
that the final report of Anthony Anderson, your
guardian. Is now on tile In tlie otlice of the
Clerk of tbeDu-trletCtourt, In and lor Howard
county, Iowa, In which sa report said guard
ian makes to the Court his lln:il report, mid
asks to be discharged. And unless you appear
at the next term or the District Court, in and
for Howard county. Iowa, appointed to be held
at the Court Iloue In said county, cimmenclut
December 8th, Idas, said petitioner will on llie
first day of said term, or so soon thorealtor as
the Court may be ready to hear same, submit
said report lor approval, and »sk to be dis
charged. JOHN MoCOOK,
lfltl At.ty. for Petitioner,
For Rent
A (rood commodious office in Berg
Block. Enquire of B, F. Davis, or
R. Ling.
ana mingiea witn tne currency oi tne
country, so that at the close of the year 1874
they amounted to $381,999,078.
.Immediately after that date, and In Jan
uary, 1875, a law was passed providing tor
the resumption of specie payments, by
which the secretary of the treasury was
required, whenever additional circulation
was issued to national hanks, to retiro
United States notes equal in amount to 8'J
per cent, of such additional national bank
circulation until such notes were reduced
to $300,000,000. Tills law further provided
that on and after the 1st day of January,
1879, the United States notes then cut
standing should be redeemed in coin, and
in order to provide and prepare for Buch re
demption, the secretary of the treasury
was authorized not only to use any sur-
ilus revenues of the government, but to
bonds of the United States and dis
pose of them for coin, and to use the pro
ceeds for the purposes.contemplated by the
In May, 1S7S, and before the date thus ap
pointed for the redemption and retirement
of these notes, another statute was passed
forbidding their future cancellation and
retirement. Some of them had, however,
been previously redeemed and canceilcd
upon the Issue of additional natlonnl bank
circulation, as permitted by the law of
1875, BO that the amount outstanding- at
the time of the passage of the act forbid
ding further retirement was t310,681
The law of 1878 did not stop at distinct
prohibition, but contained, In addition, the
following express provision: "And when
any of said notes may be redeemed or be
received into the treasury under any law
from any source whatever, and shall be
long to the United States, tliey shall not be
retired, canceled or destroyed, but they
shall be reissued and paid out again and
kept In circulation."
Creation of the Kntrra,
This was the condition of affairs on the
1st day of January, 1879, which had been
fixed upon four years before as the date
for entering upon the redemption and re
tirement of aii these notes, and for which
such abundant means had been provided.
The government was put in the anomalous
.situation of owing to the holders of its
notes, debts payable in gold on demand
which could neither lie retired by receiv
ing such notes In discharge of obligations
due the government, nor conceled by actual
payment in gold. It was forced to redeem
without redemption and to pay without
acquittance. There had been Issued and
sold J95.500.000 of the bonds authorized by
the redemption act of 1875, the proceeds of
which, together with other gold In the
treasury, created a gold fund deemed suf
ficient to meet the demands which might
be made upon it for the redemption of the
outstanding United States notes. This
fund, together with such other gold as
might be from time to time In tlie treas
ury available for the same purpose, has
been since called our gold reserve, and
100,000,000 has been regarded as an ade
quate amount to accomplish Its object.
This fund amounted on the 1st day of Jan
uary, 1879, to $111,193,3(10, and though there
after constantly fluctuating, It did not fall
below that sum until July, 1892. In April,
1893, for tlie first time since its establish
ment, this reserve amounted to lass than
$100,000,000, containing at that date only S9T,
In the meantime, and in July, 1890, an act
had been passed directing large? govern
mental monthly purchases of sliver than
had been required under previous laws, and
providing that in payment for such silver
treasury notes of the United States should
be issued, payable on demand in gold or
silver coin, at the discretion of the secre
tary of the treasury. It was, however, tie
elared In the act to be "The established pot
icy of tho United States to maintain the
two metals on a parity with each other
upon the present legal ratio, or such ratio
as may be provided by law." In view of
tills declaration it was not deemed per
missible for the secretary of the treasury
to exercise the discretion in terms con
ferred upon him by refusing to pay gold on
these notes when demanded, because bv
such discrimination in favor of the gold
dollar the so-called parity of the two metals
would be destroyed and grave and danger
ous consequences would be precipitated by
afllrmlng or accentuating the constantlv
widening disparity between their actual
values under the existing ratio.
Cause of Depletion of tlio KCHCITO.
It thus resulted that the treasury notes
issued in payment of silver purchases un
der tlie law of 1890 were necessarily treated
as gold obligations, at the option of the
holc""r. These notes on the 1st day of No
vember, 1893, when the law compelling the
monthly purchase of silver was repealed
amounted to more than 1155,000,000. The
notes of this description now outstanding,
added to the United States notes still un
diminished by redemption or cancellation,
constitute a volume of gold obligations
amounting to nearly $500,000,000. These ob
ligations are the instruments which, ever
since we have had' a gold reserve, have
been used to deplete It. This reserve, an
has been stated, had fallen in April, 1893, to
$97,011,330. It has from that time to the pres
ent, with very few and unimportant up
ward movements, steadily decreased ex
cept as It has been temporarily replen
ished by the sale of bonds.
Among tho causes for this constant and
uniform shrinkage In this fund may be
mentioned the great falling off of exports
under tlie operation of the tariff law until
recently in force, which crippled our ex
change of commodities with foreign na
tions and necessitated to tome extent the
payment of our balances In gold: the un
natural Infusion of silver into our currency
and tlie increasing agitation for its free
and unlimited coinage, which have created
apprehension as to our disposition or abil
ity to continue gold payments: the conse
quent hoarding of gold at home and the
stoppage of investments of foreign capital,
as well as the return of our securities sold
abroad: and the high rate of foreign ex
change, which Induced the shipment of our
gold to be drawn against, as a matter of
lionl IMUCB Necessitated.
In consequence of theso conditions, tho
gold reserve on the ist day of February,
1S94, was reduced to $85,438,377. having lost
more than $31,000,000 during the preceding
nine months, or since April, 1893. Its re
plenishment being necessary, and no other
manner of accomplishing it being possible,
resort was had to the Issue and sale of
bonds provided for by the redemption act
of 1875. Fifty millions of these bonds were
sold, yielding $58,033,293.71, which was add
ed to the reserve fund of gold then on hand.
As a result of this operation tills reserve,
which had suffered constant and large
withdrawals in the meantime, stood on tho
Gth day of March, 1894, at the sum of $107,
44G.802. Its depletion was, however. Im
mediately thereafter so accelerated that
on the Siith day of June, 1894, it had fallen
to $84,873,025, thus losing by withdrawals
more than $12,000,000 in live months, and
dropping slightly below Its situation when
the sale of $50,000,000 In bonds was effected
for Its replenishment.
This depressed condition grew worse,
and on the 24th day of November. 1S94. our
gold reserve being reduced to $57,609,701, it
became necessary to again strengthen It.
This was done by another sale of bonds,
amounting to $50,000,000, for which there
was realized $58,538,500, with which the
fund was.Increased to $111,142,021 on the 4th
day of December, 1894.
Congress Rcfua.d tQ Act.
Again disappointment awaited the anxi
ous hope for relief. There was .not even
a lull in the exasperating withdrawals of
gold. On the contrary, they grew larger
and more persistent than ever. Between
the 4th day of December, 1894 and early In
February, 1895, a period of scarcely more
than two months after the Becond rein
forcement of our gold reserve by the sale
of bonds, it had lost by such, withdrawals
more than $69,000,000, and liad fallen to
$11,340,181. Nearly $43,000,090 had been wlth-»
drawn within the month immediately pro
ceeding this situation. In anticipation of
Impending trouble, I had o:i the 28th day
of January, 1S95, addressed a communica
tion to the congress fully setting forth our
difficulties and dangerous position, and
earnestly recommending that authority be
given the secretary of the treasury to is
sue bonds bearing a low rate of Interest
payable by their terms in gold, for the pur
pose of maintaining a sufficient gold re
serve, and also for the redemption and
cancellation of outstanding United States
notes and the treasury notes Issued for
the purchase of silver- under the law of
1890. Tills recommendation did not, how
ever, meet with legislative approval.
Another Kmnrgoncy.
In February, 1895, therefore, the situation
was exceedingly critical. With a reserve
perilously low and a refusal of congres
sional aid, everything indicated that the
end of gold payments by the government
was imminent. The results or prior bond
tesues had been exceedingly unsatisfac
tory and the largo withdrawals of gold
immediately succeeding their public sale
In open market gave rise to a reasonable
suspicion that, a large part of the gold
paid into the treasury upon such gales
was promptly drawn out again by tlie
presentation of United States notes or
treasury notes and found its way to tho
hands of those who had only temporarily
parted with it In tlie purchase of bonds.
In this emergency, and In view of its sur
rounding perplexities, It becume entirely
apparent to those upon whom the struggle
for safety was devolved not only that our
gold reserve must, for the third time in less
than 13 months, bo restored by another
Issue and sale of bonds bearing a higlvrate
of Interest and badly suited to the purpose,
but that a plan must be adopted for their
disposition promising better results than
those realized on previous sales.
Tho Syndicate Agreement.
An agreement was therefore made with
a number of financiers and bankers where
by it was stipulated that bonds described
in the resumption act of 1875 payable In
coin 30 years after their date, bearing In
terest at the rate of four per cent, per an
num, and amounting to about $G2,000,t)uO,
should bo exchanged for gold, receivable
by weight, amounting to a little more than
$t:3,OuO,iHiO. This gold was to be delivered In
such instalments as would complete Its
-£iti: 'i.&l>cut sis month, from tlie
aatn or tne contract, ana at least one-nan
of the amount was to be furnished from
abroad. It was also agreed by those sup
plying this gold that during the continu
ance of the eontrnct they would by every
means In their power protect the gov
ernment against gold withdrawals. The
contract also provided that if congress
would authorize their Issue, bonds payable
by their terms in gold and bearing interest
at tho rate of three per cent, per annum
might within ten days be substituted at
for the four per cent, bonds described
Good Results Mot Permanent.
Though the contract mentioned stayed
for a time the tide of gold withdrawal, Its
good results could not be permanent. Re
cent withdrawals have rductd the reserve
from $107,571,230 on the Stli day of July,
1895, to $79,333,966. How long It will remain
large enough to render Its Increase unnec
essary Is only matter of conjecture, though
quite large withdrawals for shipment In
the Immediate future are predicted in well
informed quarters. About $16,000,000 has
been withdrawn during the month of No
Situation Sttll Critical.
The foregoing statement of events and
conditions develops the fact that after In
creasing our interest-bearing bonded In
debtedness more than $162,000,000 to save
our gold reserve, we are nearly where we
started, having now In such reserve $79,
333,966, as aglilnst $65,438,377 In February,
1894, when the first bonds were issued.
Though the amount of gold drawn from
the treasury appears to ne very large, os
gathered from the facts and figures herein
presented, It actually was much larger,
considerable gmna having been acquired
by the treasury within the several periods
stated' without the issue of bonds.
On the 2Sth of January. 1S95, It was re
ported by the secretary of the treasury
that more than $172,000,000 of gold had been
withdrawn for hoarding or shipment dur
ing tho year preceding. He now reports
that from January 1, 1879, to July 14,1S90,
a period of more than 11 years, only a little
over $28,000,000 was withdrawn, and that
between July 14. 1890, the date of the pas
sage of the law for an increased purchase
of silver, and the 1st day of December, 1895,
or within less than 6'/* years, there was
withdrawn nearly $375,000,000, making a total
of more than $403.0110,000 drawn from the
treasury In sold since January 1,1879, the
date fixed in 1875 for the retirement of the
United States notes. Nearly $327,000,000 of
the gold thus withdrawn has been paid out
on these United States notes: and yet every
one of the $34tS.OCO.OOO Is still uncanceled and
ready to do service In future gold deple
tions. 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 sliver by the government:
and yet tho whole, amounting to $155,000,000,
except a little more than $16,000,000 which
have been retired by exchanges for silver
ut the request of the holders, remains out
rtandlng and prepared to join their older
and more experienced allies in future raids
upon tlie treasury's gold reserve.
In other words, the government has paid
in gold more than nine-tenths of its United
States notes and still owes them all. It has
paid In gold about one-half of its notes
given for silver purchases without ex
tinguishing by such payment one dollar of
these notes. When added to all thl3 we are
reminded that to carry on this astounding
financial scheme the government has in
curred a bonded Indebtedness of $95,500,000
In establishing a gold reserve, and of $162.
315,400 in efforts to maintain it: that the an
nual interest charge on such bonded in
debtedness is more than $11,000,000: that a
continuance in our present course may re
sult In further bond issues, and that we
have suffered or are threatened with all
this for the sake of supplying gold for for
eign shipment or facilitating its hoarding
at home, a situation Is exhibited which cer
tainly ought to arrest attention and pro
voke immediate legislative relief.
Kotcs Should Do Retired.
I am convinced the only thorough and
practicable remedy for our troubles 1B
found In the retirement and cancellation
of our United States notes, -commonly
called greenbacks, and the outstanding
treasury notes Issued by the government
In payment of silver purchases under the
act of 1£90. 1 believe this could be quite
readily accomplished by the exchange of
theso notes for United States bonds of
small as well as large denominations,
bearing a low rate of tntereBt. They should
be long-term bonds, thus Increasing their
desirability as investments, and because
their payment could be well postponed to
a period far removed from present finan
cial burdens and perplexities, when with
Increased prosperity and resources they
would be more easily met. To further in
sure the cancellation of these notes and
also provide a way by which geld mav be
added to our currency in lieu of them, a
feature In the plan should be an authority
given to the secretary of the treasury to
dispose of tho bonds abroad for gold if
r.ecessary to complete the contemplated
redemption and cancellation, permitting
him to use the proceeds of sucli bonds to
take up and cancel any of the notes that
may be In the treasury or that may be re
ceived by the government on any account.
Would Restore Confidence.
The Increase of our bonded debt in
volved In this plan would be amply com
pensated by renewed activity and enter
prise in all business circles, the restored
confidence at home, the reinstated faith
In our monetary strength abroad, and the
stimulation of every Interest and industry
that would follow the cancellation of the
gold-demand obligations now afillctlng us.
In any event, the bonds proposed would
stand for the extinguishment of a trouble
some Indebtedness, while In the path we
now follow there lurks the menace of un
ending bonds, with our Indebtedness still
undischarged and aggravated in every
feature. The obligations necessary to
fund tills Indebtedness would not equal In
amount those from which we have been re
lieved since 1S84 by anticipation and pay
ment, beyond the requirements of the
sinking fund out of our surplus revenues.
How to Fill tlio Void.
The currency withdrawn by tho retire
ment of the United States notes and treas
ury notes, amounting to probably less
than $4S6,000,000, might be supplied by such
gold as would be used on their retirement
or by an Increase in the circulation of our
national banks. Though the aggregate
capital of those now in existence amounts
to more $664,000,000, their outstanding cir
culation, based on bond security, amounts
to only about $190,000,000. They are author
ized to Issue notes amounting to SO per
cent, of the bonds deposited to secure their
circulation, but In no event beyond the
amount of their capital stock, and they
nre obliged to pay one per cent, tax on the
circulation they issue.
I think they should be allowed to issue
circulation equal to the par value of the
bonds they deposit to secure It, and that
tho tax on their circulation should be re
duced to one-fourth of one per centi, which
would undoubtedly meet all the expense
tho government Incurs on their account.
In addition, they should be allowed to sub
stitute or deposit in lieu of the bonds now
required as security for their circulation
those which would he Issued for the pur
pose of retiring the United States notes
and-treasury notes. The banks already ex
isting, if they desired to avail themselves
of the provisions of law thus modified,
could Issue circulation In ndditlon to that
alreadv outstanding, amounting to $478,
C00,000, which would nearly or quite equal
the currency proposed to be canceled. At
any rate, 1 Bhould confidently expect to
see the existing national banks or others to
be organized avail themselves of the pro
posed encouragements to Issue circulation
and promptly fill any vacuum and supply
every currency need.
It has always seemed to mo that the pro
visions of law regarding the capital of na
tional banks which operate as a limitation
to their location fails to make proper
compensation for the suppression of state
banks, which came near to the people in
all sections of tho country and readily fur
nished them with banking accommoda
tions and facilities. Any Inconvenience
or embarrassment arising from these re
strictions or the location of national banks
might well be remedied by better adapting
tho present system to the creation of banks
in smaller communities or by permitting
banks of large capital to establish branches
In such localities as would serve the peo
ple, BO regulated and restrained as to se
cure their safe and conservative control
and management.
Necessity May Not Arise.
But there might not be the necessity for
Such an addition to tho currency by new
Issues of bank circulation as at first glanco
is indicated. 'If we should be relieved from
manltulnlug a gold reserve under condi
tions that constitute It the barometer of
our solvency, and If our treasury should
no longer' be the foolish purveyor of gold
for nations abroad or for speculation and
hoarding by our citizens at home, I.should
expect to
gold resume Its natural and
normal functions In tho business affalis
of tho country and ceaso to be an object
Kirrtiitlnr the timid watch of our neosle
Think. Disaster Was Averted.
On the day this contract was made its
terms were communicated to congress by
a special executive message, In which It
was stated that more than $16,000,000 would
be saved to the government if gold-bearing
bonds bearing three per cent, interest were
authorized to be substituted for those men
tioned in the contract. The congress hav
ing declined to grant tlie necessary author
ity to secure this saving, the contract, un
modified, was carried out, resulting In a
gold reserve amounting to $107,571,230 on the
8th day of July, 1895. The performance of
this contract not only restored the reserve,
but checked for a time the withdrawals of
gold and brought on a period of restored
confidence and such peace and quiet in
business circles as were of the greatest pos
sible value to every Interest that affects
our people. 1 have never bad the slightest
misgiving concerning the wisdom or pro
priety of this arrangement, and am quite
willing to answer for my full share of re
sponsibility for its promotion. I believe it
averted a disaster, the Imminence of which
was fortunately-not at the time generally
understood by our people.
ana exciting tneir sensitive imaginations.
I do not overlook the fact that the can
cellation of the treasury notes Issued un
der the sllver-purlicnslng act of 1890 would
leave the treasury In the actual ownerhsip
of sufllclent silver. Including seigniorage,
to coin nearly $178,000,000 In standard dol
lars. It is worthy of consideration wheth
er this might not, from time to time, be
converted Into dollars or fractional coin
and slowly put Into circulation, as In tho
Judgment of the secretary of the treasury
the necessities of the c.untry should re
quire. Whatever Is attempted should be
entered upon fully appreciating the fact
that by careless, easy descent we have
reached a dangrous depth, and that our
ascent will not he accomplished without
laborious tolL and strength. We shall be
wise if we realize that we are financially
111 and that our restoratl.n to health ma*
require heroic treatment and unpleusant
Question of Quality, Not Quantity.
In the present stage of our difficulty it is
not easy to understand how the amount of
our revenue receipts directly affects it.
The Important question is not thequantltv
of money received in revenue payments,
but the kind of money we maintain and our
ability to continue in sound financial con
ditions. We are considering the govern
ment's holdings of gold as related to the
soundness of our money and as affecting
our national credit and monetary strength.
If our gold reserve had never been im
paired, or if no bonds had ever been Issued
to replenish it if there had been no fear
and timidity concerning our ability to con
tinue gold payments: if any part of our
revenues were not paid In gold, and if we
could look to our gold receipts as a means
of maintaining a safe reserve, the amount
of our revenues would be an influential
factor in the problem. But unfortunately
all the circumstances that might lend
weight to this consideration are entirely
lacking. In our present predicament no
gold Is received by the government in pay
ment of revenue charges, nor would there
be If the revenues were increased. The re
ceipts of the treasury, when not in silver
certificates, consist of United States notes
and treasury notes issued for sliver pur
chases. These forms of money are only
useful to the government in paying Its
current ordinary expenses, and Its quan
tity in government possession does not in
the least contribute toward giving us that
kind of safe financial standing or condition
which Is built on gold alone.
'Would Destroy the Parity.
If It is said that these notes If licld'by the
government can be used to obtain geld for
our reserve, the answer Is easy. Tlie peo
ple draw gold from the treasury on de
mand upon United States notes and treas
ury notes, but the proposition that the
treasury can on demand draw gold from
the people upon them would be regarded
in these days with wonder and amusement.
And even If this could be done, there Is
nothing to prevent those thus parting with
their gold from regaining It the next day
or the next hour by the presentation of the
notes they received in exchange for it.
The secretary of the treasury might use
such not taken from a surplus revenue to
buy gold In tlie market. Of course, he
could not do thlswlthoutpaylngapremlum.
Frlvate holders of gold, unlike tlie govern
ment, having no parity to maintain, would
not be restrained from making the best
bargain possible when they furnished gold
to the treasury: but the moment the secre
tary of the treasury bought gold on any
terms above par he would establish a gen
eral 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 complications. In the mean
time the premium would not remain sta
tionary, and the absurd spectacle might
be presented of a dealer selling gold to
the government, and with United States
notes or treasury notes In his hand imme
diately clamoring for its return and a re
sale at a higher premium.
It may be claimed that a large revenue
and redundant receipts might favorably
affect the situation under discussion by
affording an opportunity of retaining
these notes in the treasury when received,
and thus preventing their presentation for
gold. Such retention to be useful ought to
be at least measurably permanent, and this
is precisely what is prohibited, as far as
United States notes are concerned, by the
law of 1878, forbidding tlieir further re
tirement. That statute in so many words
^rn r+y~
&?"& ^T
-ft. v, -1*-
that these notes when received
nto the treasury and belonging to the
United States, shall be "paid out again and
kept In circulation." It will moreover be
readily seen that the government could
not refuse to pay out United States notes
and treasury notes In current transactions
when demanded, and insist on paying out
silver alone, and still maintain the parity
between that metal and the currency rep
resenting gold.
Would Bo Unjust Taxation.
Besides the accumulation in the treasury
of currency of any kind exacted from the
people through taxation is justly regarded
as an evil, and cannot proceed far without
a vigorous protest against an unjustifiable
retention of money from tho business of
the country, and a denunciation of a
scheme of taxation which proves Itself to
be unjust when it takes fro!ri"the"e6FHB?jB
and incomes of the citizens money so
much in excess of the needs of govern
ment support that large sums can be gath
ered and kept in the treasury. Such a
condition has heretofore in time of sur
plus revenue led tho government to rest our
currency to the people by the purchase of
Its unmatured bonds at a large premium,
and by a large increase of Its deposits in
national banks, and we easily remember
that the abuse of treasury accumulation
has furnished a most persuasive argument
In favor of legislation radically reducing
our tariff taxation.
Fe:»r Overcome* .Sentiment.
Perhaps It is supposed that sufficient
revenue receipts would in a sentimetal
way Improve tho situation, by inspiring
confidence in our solvency and allaying the
fear of pecuniary exhaustion. And yet
through all our struggles to maintain our
gold reserve there never has been any ap
prehension ns to our ready ability to pav
our way with such money as we had, and
the question whether or not our current
receipts met our current expenses has not
entered into the estimate of our solvency.
Of course the general state of our funds,
exclusive of gold, was entirely Immaterial
to the foreign creditor and investor. His
debt could only be paid In gold, and his
only concern was our ability to keep on
hand that kind of money.
On July 1, 1892, more than a year and a
half before the first bonds were Issued to
replenish the gold reserve, there was a net
balance in the treasury exclusive of such
reserve, of less than $13,000,000 but the gold
reserve amounted to more than $114,000,000,
which was the quieting feature of the sit
uation. It was when the stock of gold be
gan rapidly to fall that fright supervened
und our securities held abroad were re
turned for sale, and debts owed abroad
were pressed for payment. In the mean
time exctenslve shipments of gold and
other unfavorable Indications caused rest
lessness and fright among our people at
home. Thereupon the general state of our
funds, exclusive of gold, became also Im
material to them, and they, too, drew gold
from tho treasury for hoarding against all
contingencies. This is plainly shown by
the large increase in the proportion of gold
withdrawn which was retained by our own
people as time and threatening incidents
progressed. Durjng the fiscal year ended
June 30, 1894, nearly $85,000,000 In gold was
Withdrawn from the treasury and about
$77,000,000 was sent abroad, while during
the fiscal year June 30,1895, over $117,00.000
was drawn out, of which only about $66,
000,000 was shipped, leaving the large bal
ance of such withdrawals to be accounted
for by domestic hoarding.
Can't Rely Upon Increased Revenues.
Inasmuch as the withdrawal of our gold
has resulted largely from fright, there Is
nothing apparent that will prevent its con
tinuance or recurrence, with its natural
consequences, except such a change In our
financial methods as will reassure the
frightened and make the desire for gold
less Intense. It is not clear how an in
crease in revenue, unless it be In gold, can
satisfy those whose only anxiety is to gain
gold from the government's store. It can
not therefore be Bafe to rely upon Increased
revenues as a cure for our present troubles.
It is possible that tho suggestion of in
creased revenue as a remedy for the diffi
culties we are considering may have origin
ated In an Intimation or distinct allegation
that the bonds which have been Issued, os
tensibly to replenish our gold reserve, were
really Issued t. supply Insufficient rev
enue. Nothing can be further from the
To Maintain National Credit.
Bonds were Issued to obtain gold for the
maintenance of our national credit. As
has been shown, the gold thus obtained
has been drawn ugaln from the treasury
upon United States notes and treasury
notes. This operation would have been
promptly prevented If possible, but these
notes having thus been passed to the treas
ury, they became the money of the govern-
ment, like any other ordinary government
funds, and there was nothing to do but to
use them In paying government expenses
when needed. At no time when bonds
have been Issued has there been any con
sideration of the question of paying tho
expenses of government with their pro
ceeds. There was no necessity to consider
that question. At the time of each bond
Issue we had a safe surplus In the treas
ury for ordinary operations, exclusive of
the gold In our reserve. In February,' 1894,
when the first lssiue 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 $42,000,000
andln February, 1895, when bonds for the
third time were Issued, such sumlus
amounted to more than $100,000,000. It now
amounts to $98,072,420.30. Besides all this
the secretary of the treasury had no au
thority whatever to issue bonds to Increase
the ordinary rovetxues or pay current ox-*
penses. I cannot but think there lias been
some confusion of ideas regarding tlie
effects or the Issue of bonds and the results
of the withdrawal of gold. It was the lat
ter orocfis*. and not the former., omt- *.
rrostmmngr rrr tne treasury tmitea state®
notes and treasury notes for gold. In- v-
creased by their amount the money which
was in the first Instance subject to ordl
nary government expenditure. .."
Silver Largely Responsible. VSfJ
Although the law compelling an Increased f.
purchase of silver by the government was
Passed on
the 14th
day of July,
oi/i „ar-o£
with- •.
drawals of gold from the treasury upon the
notes given In payment on such purchases
did not begin until October, 1891. Immedi
ately following that date the withdrawals
upon both these notes and United States
notes increased very largely and have con
tlnued to such an extent that since the
passage of that law there has been more
than 13 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 111&
years Immediately prior thereto and after
the 1st day of January, 1879, when specie
payments were resumed. It Is neither un
fair nor unjust to charge a large share of
our present financial perplexities and dan
pe™ to tho operatIon of the laws of 1878 and
1890, compelling the purchase of silver bv
the government, which not only furnished
tfeasury obllgatlon upon which its
h?i e„
withdrawn, but so Increased
°verwhelmlng flood of sliver
tw descent to silver payments
,retxia' of these laws did not
entirely cure the evils of their existence.
A Hazardous Kxperinient.
While I have endeavored to make a plain
statement of the disordered condition of
our currency and the present dangers
menacing our prosperity, and to suggest a
way, which leads to a safer financial sys
tem, I have constantly had Jn mind tho
fact that many of my countrymen, whoso
sincerity I do not doubt, insist that tho
cure for the ills now treatening us may bo
found in the single and simple remedy of
tho free coinage of silver. They contend
thatourmlnts shall at once be thrown open
to the free, unlimited and independent
coinage of both gold and silver of full
legal-tender quality, regardless of the ac
tion of any other government, and In full
view of the fact that the ratio between
the metals which they suggest calls for
100 cents worth of gold in the gold dollar
at tlie present standard, and only 60 cents
in intrinsic worth of silver In tho silver dol
Were there infinitely stronger reasons
than can be adduced for hoping that such
action would secure for us a blmetalllo
currency, moving on lines of parity, an
experiment so novel and hazardous as that
proposed might well stagger those who
believe that stability is an imperative con
dition of sound money. No government,
no human contrivance of legislation has
ever been able to hold the metals together
rree coinage at a ratio appreciably dif
ferent from that which is established In
the markets of the world.
Opposed to Our Own Experience.
Those who believe that our independent
free coinage of silver at an artificial ratio
with gold of sixteen to one would restore
the parity between the metals, and conse
quently between the coins, propose an un
supported and improbable theory to the
general belief and practice of other nations
and to the teaching of the wisest states
men and economists of the world, both in
the past and present, and, what is far more
conclusive, they run counter to our own
actual experiences. Twice in our earlier
history our lawmakers In attempting to
establish a bimetallic currency undertook
free coinage upon a ratio which accidental
ly varied from the actual relative values
of tho two metals not more than three per
cent. In both cases, notwithstanding
greater difficulties and cost of transporta
tion than now exist, the coins whose In
trinsic worth was undervalued in the ratio
gradually and surely disappeared from our
circulation and went to other countries
where their real value was better recog
nized. Acts of congress were Impotent to
create equality where natural causes de
creed even a slight inequality.
Twice in the recent history we have sig
nally failed to raise by legislation the
value of silver. Under an act of congress
passed in 1878 the government was re
quired for more than 12 years to expend
annually at least $24,000,000 in the purchase
of silver bullion for coinage. The act of
July 14, 1890. in a still bolder effort in
creased the amount of silver th,e govern
ment was compelled to purchase, and
forced It to become the buyer annually of
54,000,000 ounces, or practically the entiro
product of our mines. Under both laws
silver rapidly and steadily declined in
value. The prophecy and the expressed
hope and expectation of those In the con
gress who led In the passage of the last
mentioned act, that It would reestablish
and maintain the former parity between
the two metals, are still fresli in our mem
Dire EfTccfc of Freo Coinage.
In the light of these experiences, which
accord with the experiences of other na
tlons, there is certainly no secure ground^^
for the belief that an act of congress COUUK^S^?/t
now bridge an inequality of 60 per cent.fr g&?a
between gold and sliver at our present&SllL
ratio, nor is there the least possibility that^Sffi
our country, whlclf has less than one-sev
enth of the silve' money in the world,
could by Its actloiii alone raise not only our
"8*« but all silver to Its lost ratio with gold. i'
attempt to accomplish this by the free
c-olnago 6f silver at a ratio differing widely"
from acttiBtTfljatlve values wouliLhll thl*—
signal for tlu? complete departure of gold
from our circulation, the immediate and
large contraction of our circulating med
lum, and a shrinkage in the real valucfcnd
monetary efficiency of all other formB of
currency as they settled to the level of
silver monometallism. Every one who re-jliL *3
ce-lves a fixed salary and every worker for-'H
wages would find the dollar In his hand Vs
ruthlessly scaled down to the point of bit
ter disappointment If not to pinching priva
A change in our standard to silver mon
ometallism 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 tlian
the entire volume of currency, and Is safe
ly capable of almost indefinite expansion
to meet the growth of trade and enter
prise, In a self-invited struggle through
darkness and uncertainty, our affliction
would be Increased by the consciousness
that we had parted company with all tho
enlightened and progressive nations of the
world, and were desperately and hope
lessly striving to meet the stress of modern
commerce and competition with a debased
and unsuitable currency, and in associa
tion with the few weak and laggard na
tions which have silver alone as their
standard of value.
Has Faith In the People.
All history warns us against rash ex
periments which threaten violent changes
in our monetary standard and the degrada
tlon of our currency. The past is lull of
lessons teaching not only the economic
danger, but the national 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 standing by encouraging financial
nostrums, nor that they will yield to tho
false allurements of cheap money, when
they realize that it must result In the
ening of that financial Integrity arid
rectitude which thus far in our history has
been so devotedly cherished as one of the
traits of our Americanism.
Our country's indebtedness whether
owing by the government or existing be
tween individuals has bfeen contracted
with reference to our present standing.
To decree by act of congress that theso
debts shall be payable in less value dollar!
than those within the contemplation and
intention of the parties when contracted
would operate to transfer by the fiat of laW
and without compensation an amount ot
property and a volume of rights and inter
ests almost incalculable.
Mont Maintain the Single Standard.
Those who advocate a blind and head
long plunge to free coinage In the name
of bi-metalism and 'professing the be
lief contrary to all experience that we
should thus establish a double standard
and a concurrent circulation of both met
als of our coinage are certainly reckoning
from a cloudy standpoint. Our present
standard of value is the standard of tho
civilized world and permits the only bl- .S
metalllsm now possible, or at least that
Is within the Independent reach of any
singlo nation, however powerful that na
tion may be. While the value of gold
Is steadied by almost universal commer
cial and business use. It does not des
pise silver nor seek Its banishment.
v\ nercver that standard Is maintained
there is at its side, in free and unques
tloned circulation, a volume of sliver cur
rency sometimes equaling and sometimes
exceeding It In amount, both maintained
at a parity, notwithstanding a deprecia
tion or fluctuation In the intrinsic value
of silver.
There Is a vast difference between a
standard of value and a currency for
monetary use. Standard must necessarily
be fixed and certain. Tho currency may
be In divers forms and of various kinds.
No silver-standard country has a gold cur
rency in circulation but an enlightened
and wise system of finance secures the
benefit of both gold and silver as currency
and circulating medium by keeping: the
standard stable and all other currency at
par with it. Such a system and such a
standard also gives free scope for the use
and expansion of safe and conservative
credit so indispensable to broad and grow
ing commercial transactions, and so well
substituted for the actual use of money.
If a fixed anil stable standard Is main
tained, such as the magnitude and safety
of our commercial transactions and busi
ness require, the use of money itself Js
conveniently minimized. Every dollar of
fixed and stable value has through the
agency of confident credit an astonishing
capacity of multiplying itself Jn financial
work. Every unstable and fluctuating
dollar fails us a-basls of credit, and In Its
use begets gambling, speculntion, and un
dermines the foundation of honest enter
1 have ventured to express mvself on thin
subject with earnestness and plainness of
snaach because I cannot rid nu'self Of the

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