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 situation. It was when the stock of gold began
rapidly to fall that fright supervened and our securities held abroad
were returned for sale and debts owed abroad were pressed for payment.
In the meantime extensive shipments of gold and other unfavorable
indications caused restlessness and fright among our people at home.
Thereupon the general state of our funds, exclusive of gold, became
also immaterial to them, and they too drew gold from the 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increase in the proportion of gold withdrawn which was retained by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. During
the fiscal year ending 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withdrawn from the Treasury and about $77,000,000 was sent abroad, while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 ending June 30, 1895, over $117,000,000 was drawn
out, of which only about $66,000,000 was shipped, leaving the large
balance of such withdrawals to be accounted for by domestic hoarding.

Inasmuch as the withdrawal of our gold has resulted largely from
fright, there is nothing apparent that will prevent its continuance 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 increase 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 safe to rely upon increased revenues as a cure
for our present troubles.

It is possible that the suggestion of increased revenue as a remedy for
the difficulties we are considering may have originated in an intimation
or distinct allegation that the bonds which have been issued ostensibly
to replenish our gold reserve were really issued to supply insufficient
revenue. Nothing can be further from the truth. Bonds were issued to
obtain gold for the maintenance of our national credit. As has been
shown, the gold thus obtained has been drawn again 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