The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-07-24
Is PRESUMPTION, POS sIBLE Z

What Mr.. Train calls remarkable" ar
ticle-aud the adj ective sui-s US precisely
recently appeared in the financial depart
ment of the New York World. The article
is written to prove the ''practical absurdi-
ty" Of return to specie payments, to shO W
how our gold markets are drained by Eurs-
pean crafitness, and TO dispel the fallacious
idea tibet so generally obtains in our bust
ness circles, "that gold ought to decline as
the price Of bonds advance ia London and
most conclusively does be substantiate each
Of these positions.
He assumes % the Offset that gold, like
cotton and tob' eco, is merely commercial
article, and as cch, depends entirely upon
the laws Of supply and demand. Gold is
il 10 instance used a. money. The treasu-
~ department sells what it incorrectly calls
its surplus gold-.f6r money. Incorrectly
so called, because it has at no time gold suf-
6cieut to pay the interest on our gold-bear-
ing securities six 4 nnths ahead-nobody Is
preparing for specie payments. Savings
Banks md other institutions, holding gov
ernmsnt bonds, dispose Of them before they
fall due, frequently, and always as quickly
as they can The bear interest ty means Of
"short sales" bankers, importers, and mer.
chants BY borrowing instead of buying god
against their daily wants. the article correct
" contends, reduces the price Of gold to an
''uDnaturally" low point, which stops the
exports Of other produce. " this way
1896, 100000 Of gold have gone out Of the
country during the past six years. The in
creased sale Of bonds to foreign holders,
specifically viewed, seems beneficial TO the
country, "but it is not what il is cracked up
to be-"
People generally believe that for every
dollar Of bonds bought By Europe, we are
paid 80 cents in gold, which is not the case.
Instead, we are paid in dry goods and other
articles at premium Of 10 and II cents on
the dollar, and within very short time
these articles and the bonds which they rep
resent are consumed, and we re aot one
penny richer. In this way we have export
ed 5000 10000 Of 5-20s, and about $780,
10000 Of other securities in payment Of
the interest on which we yearly send out Of
the country $90,CO0,000 in gold. These Sc
euritIes only cost their holders about $780,
000, 200, while their face reads 81, 500, 0OO,-
600. Our annual gold product j. about
$l00,000,000 Of which we give to Europe
30 per cent. for what we have already con-
sumed.
Our banks, the World editor estimates,
hold about $2l 900, 900, and about as much
more is held by foreign bankers or agents
in New York city. OF this amount the
greater part would be called away, should
a war or "politcal Implications" disturb
European equanimty. This would make
spectators and importers rivals ia the pur-
chase Of gold-its price would 70 up-sDd
other products, being cheaper, would be tax
en- in preference by European buyers. We
think the writer Of the article nOder consid-
GRAFTON, which We have merely attempted TO
boil down and dress 10 terms more com
prehensiye to the laboring man deserves
much credit for bis able effort
The question seems NOT TO be, elbow soon
can We return to specie payments" but
rather, 'Is i possible ever to resume specie
payments" We send pine dollars out Of
every ten to Europe to pay for bonds already
across the water and as tue price Of bonds
increases, the shipments must increase-in
corresponding proportion. Instead Of vast
irg precious lime haggling over the mani
testify impossible project Of resumption,
would it not be wise to adopt the "Ameri-
can Monetary System" proposed by the
National Labor Union, furnishing the coun-
try With an abundant currency, cheap, and at
all times available, thereby stimulating pro-
duetIon, increasing the wages and comforts
Of our labor, and secured agains. the many
iuctuationl By contingencies ia Europe to
which our present system is 90 frequen tly
subjected. II such Of our representatives
n Congress as are honestly inclined towards
The people, would but give our plan the
benefit Of an examination, we are convinced
IF our ability to secure their enrolment un-
der our standard.