care for
the public welfare it became necessary to replenish this reserve and
thus maintain popular faith in the ability and determination of the
Government to meet as agreed its pecuniary obligations.

It would have been well if in this emergency authority had existed to
issue the bonds of the Government bearing a low rate of interest and
maturing within a short period; but the Congress having failed to confer
such authority, resort was necessarily had to the resumption act of
1875, and pursuant to its provisions bonds were issued drawing interest
at the rate of 5 per cent per annum and maturing ten years after their
issue, that being the shortest time authorized by the act. I am glad
to say, however, that on the sale of these bonds the premium received
operated to reduce the rate of interest to be paid by the Government
to less than 3 per cent.

Nothing could be worse or further removed from sensible finance than the
relations existing between the currency the Government has issued, the
gold held for its redemption, and the means which must be resorted to
for the purpose of replenishing such redemption fund when impaired. Even
if the claims upon this fund were confined to the obligations originally
intended and if the redemption of these obligations meant their
cancellation, the fund would be very small. But these obligations when
received and redeemed in gold are not canceled, but are reissued and may
do duty many times by way of drawing gold from the Treasury. Thus we
have an endless chain in operation constantly depleting the Treasury's
gold and never near a final rest. As if this was not bad enough, we
have, by a statutory declaration that it is the policy of the Government
to maintain the parity between gold and silver, aided the force and
momentum of this exhausting process and added largely to the currency
obligations claiming this peculiar gold redemption. Our small gold
reserve is thus subject to drain from every side. The demands that
increase our danger also increase the necessity of protecting this
reserve against depletion, and it is most unsatisfactory to know that
the protection afforded is only a temporary palliation.

It is perfectly and palpably plain that the only way under present
conditions by which this reserve when dangerously depleted can be
replenished is through the issue and sale of the bonds of the Government
for gold, and yet Congress has not only thus far declined to authorize
the issu