passed to the Treasury, they became the money of the Government, 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 consideration
of the question of paying the expenses of Government with their
proceeds. There was no necessity to consider that question. At the time
of each bond issue we had a safe surplus in the Treasury for ordinary
operations, 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 $42,000,000, and in February, 1895, when bonds for the third
time were issued, such surplus 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 authority
whatever to issue bonds to increase the ordinary revenues or pay current
expenses.

I can not 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 the latter process, and not the former, that, by substituting in
the Treasury United States notes and Treasury notes for gold, increased
by their amount the money which was in the first instance subject to
ordinary Government expenditure.

Although the law compelling an increased purchase of silver by the
Government 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 begin until October, 1891. Immediately following that date 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issued for silver purchases as was thus withdrawn during the eleven and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,
1879, 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 1878
and 1890 compelling the purchase of silver by the Government, which not
only furnished a new Treasury obligation upon which its gold could be
withdrawn, but so increased t