The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1884-04-18
FINANCE AND COTTON.
FINANCIAL.

" tho treasury department insists upon thu
payment OF balances A. New York. ~ silver
certificates the bsnss will be- Compellcd I, re-
fuse them, because their business relations with
I'm 9ort9rs and OK porteis ara. such mat they
cannot handle n volume Of silver. An I'M
porter Tor INSTANCE, 9nys a fargo q IT. yea III III mnIu,,
refuses tho silver Because IL VIII not avail hlm
~ y par valus In negotiation, ~ de'ires To
make through n London bank FOR Euiopinn
purchases for shipment tn China llha should
accept the silver n, the hmeh an valuttol, and
should Offer II In n foreign country, or sholid
take a bill OF exchnng 90 for silver, ana CHER that,
he would b, met a. ontc with Tho PROPOSE ION
that silver was not causl ia vsluetn gold outside
OF the Uni.ed Stated and would b compollo I
to suffer q discount Of not less Than II per cent,
which would make his American. silver dollar
worth TO him but 10 cents, THIS fact Is Known
10 all exporters In foreign counties. and while
they arc wiling 10 tccoenisa the fact that u vi
yer dollar IN the Uulted states u leg lily worth
q lin gold for the purchase OF merchandise
comm ,iitigs. they do not regard 10 as , ay!ng
the intrinsic worth II gotl, wnirh Is tho stand
ard OF value currency Ia nll countries, nld Is
not questioned by he merchants of any ta.lon.
They also know that n bill OF exchange on
London means one universal currency gold
and whiln they are willing TO accept exchange
on London because ! means gold. they dccllne
IN recognize any bills OF exchange on New
York, because they know that the Uuilcd States
has declared silver 10 be u legal telder IN pay
ment OF all debts ana arc fearful their
demands may he met in n currency which
will neces- tate to them "a loss n they accept II
In payment ofthclr lust dues. Tho present. at
iitude OF the treasury department IN undertake
Ing 70 force the settlement Of balances Ia silver
certificates will only Tend TO further omb.rrass
large dealers In articles thai are imported on u
large scale, aud will necessarily force the banks
TO refuse the terms offered by the treasury DC.
partnent. This action may cause the treasury
10 withdraw from the eallng.houso VI New
York, when tho BANKERS Will 90 placed In y
similar situation 10 tho banks at Chicago, and
will simply have 10 Gccept checks Tor their
hatappos and take frpm tho treasury kilVNF nnr-
t,ncatss In pay mtnt OF the balances due them,
or hold the checks. Just now. the banks
are IN a condition 70 hold tho gold
best efforts TO IN, IRE all they can. They Will
not even be satisfied with gold certificates, bu.
IN many instances win cash what god c3rtil.
Gates they have on hand aud pile up tho gold In
their vaults, well knowing tho time must come,
II the present policy OF the government Is pur.
sued, when that gold will be worth 10 them a
handsome premium. In addition to this many
OF the banks have In their possession rs a pa 1t
OF their reserve iund golt checks, which they
have held for several years. in sums varying
from a few thousand TO nearly 100000. These
checks are against the reserve gold In the
treasury, which only amounts TO about sl25, 900,
OOO, aud II the present policy OF the treasury
department Is TO be pursued thee is no reason
- expect anything else lhan mat nc holders OF
these checks will present them nnd draw from
the treasury the greater part OF this
sum. II this should be done Il IL easy
to see what tho result might bo
III tu0 uDDTttlhllDu VI kblts W. Mutll
the reserve fund OF the 70 vernment is reduced
In such an amount as It would DO by such n de
mand. II Is reasonable TO suppose the elect
won d be to produce q holding OF gold IN NC
vaults of tho banks and In the pockets OF the
ps oplc. and a consequent appreciation OF the
value OF gold, because Il would az once become
q marketable commodity. The more scarce 4
became tho higher tho price would BIZ placed
upon It. 1t would occupy tho anne position
that any other article OF merchandise occupies,
and its scarcity and demand would regulate lis
u pursued. can have no other result than to
force gold TO a premium, ana when sueh q
result ensue5 the country can expect
moth ng less than a h financial mu calamity nsn
saiily reach every household in the land. This
Is but a logical conclusion, and must BIO the
outcome OF the silver policy Of the country, aud
made 10 understand II the better II will be for
the Interests OF the %genorol public, and the
more certain we win be to avert II crisis: The
tho country IS an unjust discrimination agains,
tho interests OF the people, and Is equivalent 10
m acknowledgment thar the treasury depart,
ment is Mt the mercy OF the silver miners OF
the country. aud regards their interests OF
greater magnitude than those OF the remainder
Of the people. Perhaps the government will
learn a lesson too late on the silver question,
and will then regret that tho coinage
not long since stopped. "a silver dollar is not
equal In value To a gold dollar. and, no matter
how much legts ht0n there NAV De III rcguru 70
It. the fact tn 1t II will only buy s.. cents worth
Of gold Is so patent TO everyone that 1t VIII not
be accepted for any greater sum so long as
this fact ia apparent. and tho government con-
linues the coinage OF silver dollars ~ such
quantities, nothing less can be expected than q
want OF confidence In the ability Of a silver dol.
lar 10 purchase a dollars worth of any commod-
ity, whether 1t be Of foreign or American pro-
duction. The forcing of gold TO a premium
| means o return TO the high prices Of all com
|modities that prevailed Mt the close of the late
I war, and the present policy of the government
can haye but one result ifit IL carried into tf-
feet as II has been proposed by the treasury de-
partment"