Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1888-06-22
Geld Ernorts.

Gold begins to go out, says the New
York Tribune, and the superabundance
of money at this point is so great that
bankers regard the outgo as a benefit.
Obviously it helps the money lender to
have less money available for borrow
ing in the market. The fact is that the
volume of money in circulation Is much
greater than the country now requires,
and the loss of a part of it should Oc-
casion no apprehension of present dis
turbance. But there is another side to
be considered. The loss of a part of
the gold reserve, upon which the value
of all the currency in circulation de-
ponds, is not exactly matter of indif-
ference. No disadvantage may result
at present, or in the near future, and
yet the consequences in the end may
not prove unfaYOrable. At some future
time, when the value of the silver GER
tificates and of the paper notes IN cir
culatiOn come to depend upon the re-
serve of gold Immediately available, it
will not help the country to have lost
any of its gold reserve. The use of sill
yer, paper and gold on equal terms has
gone on so long that many people have
forgotten the possibility of a separation
between them. But that possibility
still exists, and it is brought nearer by
! every diminutiOn of the available sup
ply of gold in the treasury.
This is the one objection to Mr.. Fair
child's financial policy which the Trib-
une has often argued. Its tendency is
/ to bring nearer the danger of monetary
disturbance. He has steadily increased
| the circulation of paper Of various kinds,
/ but has not cOrrespOndingly increased
! the stock of gold which the treasury has
/ at command. By depOsiting $50, 900, 600
with banks, mainly at the chief centres
! of speculation, he has stimulated activi-
/ ty in speculative markets, but 1t was long
/ ago pointed out that theincreased supply
at such points did not operate to increase
industrial activity or production, or &c
/ help legitimate trade. Precisely the
same difficulty exists with the use Oh
the surplus in the purchase of bonds
The holders of bonds who are willing
to sell get the money which the treas
ury disburses. They are not as a rule
| able to employ the money received IL
new industrial enterprises or in enlarg
ed legitimate trade, because the pres
emit comparative inactivity In these di
rectiOns must leave unemployed part
| u 5AlO 4uuCS u6LdL44J uOFOOO0 ~ l-AG--A
At the chief financial centres, moreover
the demands of speculation are con
slant and very elastic, while the de
mands of legitimate trade and of indus
try depend mainly upon the situation
in other parts Of the country.
The secretary has poured into TIN
market several millions of money, at {
time when there was neither any neeC
for more nor any prospect that Their
would be .ch need for months t.
come. The consequence is that none.
has become undesirably cheap, an,
banks are glad to see part of it go on
of the country. The belief that it VII
come back again if trade continues sat
isfactory is we'll founded. But any i'm
portant shrinkage of crops this year, o
any excessive speculation arresting
purchases for export, would retard o
check the sales of domestic products
and thus the return of the gold. Wit
no present or near danger to be feared
the policy of the secretary nevertheless
tends to weaken the monetary systeI
for any future emergency.