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The Gold Treasury Reserve

The Gold Treasury Reserve image
Parent Issue
Day
2
Month
April
Year
1897
Copyright
Public Domain
OCR Text

Of the 1100,000,000 gold reserve in the Umted States treasury the New York Sun says this: After the sum of $95,000,COO in gold was provided in 1878 by Secretary Sherman to insure the resumption of specie payments, gold remaiuedso plenty in tho treasury that the idea aróse that tho fund establishcd for the speeific purpose of being paid out in redeeming greenbacks must be kopt intact, and that taking a dollar of it in accordance with this original purpose was unpatriotic, and giving a dollar of it in exchange for a greenback was an official proclarnation of danger to the public credit. This conception of the reserve as an iramovable lump of uselessness gradually expanded into an imaginary law niakiug the $100,000,000 an absolute requirenient. When the misconception of the gold fund is dispersed entirely and its inteuded function uuderstood, a crushing weight willbelifted off the shoulders of our commerce, and the first preliminary step wil] be taken tovvard a sane considuration of our flnanoes. The figure of $100,000,000 for the treasury's greenlmck redeeming fund of gold is purely convontiona!. The theory of it, however, is that it is largo enough, wlieii treasury gold is desired for export, to tako, by redemption, sufflcient greenbacks froni circulation to contract the eurrency to the point where no more greenbacks shall be offered and tho withdrawal of gold shall be arrosted. Judging by experienee, $100,000,000 is more than enough to accomplish this. The panic that followed the 3rst attempt to retiro the greenbacks in 1866 became Bevere enough to stop it after the reïirement of $75,000,000; $29,000,000 sufflced in 1878, and $19,000,000 in 1881.

Article

Subjects
Old News
Ann Arbor Democrat