The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-07-19
Colonel Morrison, of Illinois, Finds His Posi-
tion as Representative of the Majority
Party no Sinecure.
Commissioner Black Shows ViciOusness
in the Discharge of His Duties.
Clerks Afraid to Ask for Leave of Absence
Bright Prospect for Republican Vic
tory in Virginia Next Fall.
FINANCIAL PESSIMESTS
Who Look for Great Stringency Through
Hoarding of Gold.

Hoarding of Gold.
Special to the Indarap apoIis Journal.
WASHINGTON, July 18-Those here at the
capital who have watched closely the course of
the money market, and who, moreover, have
noted the varied and varying features of the
conflict between the silver maniacs and the gold
bugs, predict that we are the eve of fnan-
clal earthquake that will shake this country
from center to circumference, and cause the
strongest houses and firms one after the other,
to topple over like rows of bricks set on end
when the first one is showed past the center of
gravity with a touch of the hand or foot. That
is to say, the gold-bugs make these predictions
daily and hourly, almost And events that have
transpired during the last ten days seem
to give evidence of the truth of these
gloomy forebodings. Nor is it only just now that
the bullionists have pointed out the probable
results of the excessive coinage of silver Last
January bill was under discussion in the
House of Representatives to permit the national
banks to issue bank bills to the full face value of
the bonds deposited in the United States Treas
ury to secure their circulation. Under the law
as it then stood, if bank deposited bonds of the
face value Of 100000, it could only issue bills
based on the bonds to the amount of 500, 900.
The bill discussed in the House last January
would allow the banks to issue $780, 900 in their
bills on that amount of bonds. On the 18th of
January last the bill was under discussion, and
among others who spoke against it was Mr.
Hewitt, and among other things Mr. H said:
IL am opposed to this measure and am op-
posed to 1t not because am either the friend or
the enemy of the banks or the banking system.
l look upon banks as a part of the machinery
with which the business of the country is carried
on. They would not exist if they were not use
full; and my only concern in regard to the banks
is that the machinery shall be kept in good
order, so that it will run But this bill will not,
in my Judgment contribute to the public vel
fare, although it may add to the profits of the
banks, in regard to which we have no other con-
Germ than not to deprive them Of the opportunity
of making enough profit to induce them to serve
the public, so long as the public shall require
their services.
II have no concern in these profits This
House has no concern in these profits. The only
question Is whether the operations of commerce
will be promoted or damaged by the passage of
this bill think they will be damaged There
fore L am against the bill. 1T proceeds upon q
false assumption which has been repeated many
times in the course of this debate. 1t proceeds
upon the idea that there has been during the last
year contraction of the currency. There has
been such contraction. [ hold in nv hand the
page ii he estimates that the net decrease of
bank circulation has been $24, 110,6 But it is
a remarkable fact that the increase in the coin
age of silver represented by silver certificates
(which are currency during the same period
exactly $24, coo, coo. The bank currency,
therefore, that has been retired was driven out
OF circulation by currency Of superior circu-
latlng power, and it lost its place in the circua
tion of the country because there was no use for
it."
pti in howe hoe hoo,
fulfilled to the very letter in one respect The
gold balance in the Treasury has been drawn
down so low that payments in future will have
to be made in silver, unless some way is speedily
discovered to replenish the gold reserve of the
Treasury. day or two ago Mr.. Jordan, Treas
urer of the United States, had a long and ex-
haustive consultation with the bankers of New
York City, to see if some means could not be
devised to replenish the gold-reserve of the
Treasury. The only eXpedient the bankers
could or did suggest was for the bankers of that
city to advance the Treasurer some $40, 600, 600,
or even $50, 100000, in gold. This the Treasurer
refused to accept and the conference broke up.
Therefore, silver payments seem imminent
and inevitable and the moment they begin gold
will become commodity instead OF being cur
rency. That is. it will bear premium, and the
banks will hoard it up as they did during and
just after the war. Estimating the gold coin
in the country at 5000, OOO, this will cause
contraction Of the circulating medium of the
country to that amount and the contraction
will be swift, crushing and remorseless. What
the result will be every one can see for himself
But it certainly is remarkable that Mr. Hewitt's
prophecy of six months ago should be so exactly
fulfilled.