The record-union., 1891-11-12


probability have sold at premium be-
fore Christmas. He adds in prophetic
strain:
Gold will be withdrawn from circulation
and the boarding of this metal will commence
whenever the time arrives that importers and
foreign bankers believe that il is probable in
the near future that check drawn upon
bank in New York viii not be received in
payment OF bill OF exchange drawn in Lon
don. All prudent men engaged in foreign
trade will then convert as speedily as possible
their deposits into gold, and the catastrophe
OF premium on gold viii be at hand. The
large banks and bankers of Europe have, be-
fore this impending danger been willing 10
leave liberal cash balances in the hands of
their agents in this country because OF the
higher rates for money usually prevailing
here. OF course the probability of premium
on gold would cause all Tioating capital of this
Kind TO be Withdrawn, unless promises TO pay
in gold, with all the attendant risks were en-
tered into on the part of American dealers in
foreign exchange.
But saving and excepting the silver
menace Mr.. Smith finds the business
prospects of the United States to be full
of encouragement. The threat of money
stringency has been averted by prepara-
ton on the part Of the business world to
get out of debt rapidly, and by the enor-
nous crops of this country and the as
surance of large demand for our sup
plies by Europe at good prices.
These causes were reflected in an adj
vance in stocks which foreign capitalists
have quite recently been disposed to buy
! for ''quick turns'' on the market The
! late crisis in England he looks upon as a
private bankers disturbance; which,
however, operated to make prudent mer-
| chants shorten sail" To-day the in
! dustrial and commercial establishments
of the country he believes to be upon
sound, conservative basis. Speculation
is not rife, says the essayist, obligations
are incurred with caution, collections
! have been better than average during the
summer, and the demands for money
from merchants less than usual.
He then proceeds to show how large is
the amount of capital invested in the pro-
duction Of textile fabrics; that in the line
of carpets we are the largest producers in
! the world; that in New England the
manufacturers of cotton have had aver
age success that we are selling the low
and medium grades ofcotton goods quite
as low as they are sold in London, Paris
or Berlin; that we have proved our ability
to compete successfully with Europe in
manufacture and sale Of plain cotton
goods when the cost of labor in produc-
ing piece Of goods does not exceed p
per cent. Of the total cost.
The woolen and worsted industry has
not been so successful. President Smith
admits his conviction tnat our true policy
should be one of a very low tariff upon
wool, or free wool, since it would benefit
alike manufacturer and wool grower, and
would place both upon a frmer basis.
The iron industry, he says, has been
marvelously rapid in growth during the
past five years, and despite the
depression in the iron trade last spring
the outlook is encouraging and iron and
steel are more and more each year COM
|
ers admit that they have made money,
though the price of iron has been lower
than for many years. Coal production
has kept pace with that of iron, and gen
orally MI. Smith finds that our business
condition is good, and as said already,
| that its one menace is excessive silver
! coinage.
When, he holds, the condition that ex-
lists now is reversed and there are short
crops in this country and abundant har-
vests in Europe the danger signal of last
summer will again be flown. That is,
money loaning at a low rate in Wall
street on six months time and redeema-
| BE in gold with the currency rate cent
and half higher. Thereupon prudent
lenders will insert gold clauses i'll their
mortgages. This result, Mr.. Smiths
article in all its tenor insists will be
chargeable to our mistaken silver policy