New-York tribune., 1884-03-01
An Alarm And 4 REMEDY.

Within the past few days the Treasury has
lost considerable gold. Yet it still holds
5000. .S23.GG9, against $7S,519,23O gold
certificates outstanding. 1t has on hand, in
spite of all the recent Withdrawals, 81, 100000
more gold than it had at the beginning of this
wear. and $4,000, 600 more than it had one
wear ago. March l, 1888. There was no present
occasion for alarm one year ago There was no
alarm at the beginning of this year, though
THE TEIEuYE had for some time been pointing
out the absolute necessity of doing something
to prevent national bankruptcy by forced pay
mcnts in silver. 1t was said last year, again
and again, that a wave of apprehension and dis
trust might at any time begin to roll over the
country, which, if the Government were not
prepared to change its course promptly, might
with very little warning sweep away all power
to avoid dcbasement of the currency.
Nevertheless, Secretary FOlger has gone on
lust as if there were no possibility of mischief.
He has paid out many millions in gold, for
bonds which the holders did not want to have
redeemed, when he might have strengthened the
gold reserve in the Treasury. He has virtually
paid premium to business men in all other parts
Of the country for accepting silver certificates in
payment Of claims against the Government,
tbough he must have known that such
certificates were thus being thrust INTO clcula-
ton to the exclusion of baninOtes and OF gold
coin. Consequences not pleasant to the Treasury
or the people have been constantly predicted,
but it has seemed good to him to count his
idle and useless silver as part Of the re-
serve available for redemption OF Treasury
oblieatiops. and TO this day he persists in the
same fallacious reasoning 1t mast be assumed
that thus far he has had IN this general policy
the approval of the President.
II seems high time now for President Arthur
TO direct that different policy be adopted. He
docs not wish to see his administration close in
financial panic and public disgrace He cannot
imna1t TO n Democratic Congress intelligence
enough or patriotism enough to avert the evils
that unwise legislation involves. But he can
refuse to have the Government made bankrupt
during his term of Office by any act of his
Secretary of the Treasury.
The simple and obvious way to stop mischief
is to hold the gold reserve in the Treasury and
steadily increase it. No law cOmpels the EXecu-
five to call bonds or to buy bonds, at a time
when the public faith requires an increase of the
cold reserve. At present, the surplus revenue
is about $100,O00,0OO yearly, let us say. Oh
this. about S3O, 600, 900 yearly must be wasted
in the purchase of useless silver. But that
waste will not be fatal, if the Treasury will
take care TO retain gold enough to meet all lis
obligations. 1t can add to its gold reserve any
part of the SIC, 100000 remaining surplus in
a wear. This would remove all danger OF a
demand for gold, for it would make the
Treasury able to pay gold to all who want it,
no matter how much silver might accumulate.
There will be no alarm, if the Treasury uses Its
power to strungthcn its gold reserve. The
alarm begins only when weak or Ignorant
officials assume ia acts OF words that the
Treasury is presently going to be unable to pay
gold, and forced to pay silver.
OF this there is not the least danger at present,