New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-24
THE TREASURY AND GOLD EARS.

When the Treasury demanded a premium on
gold bars for export the entire business com
munity approved. That was simply taking
away the premium on exports Of gold, il was said.
When bars were refused. there was a growl IN
some speculative quarters, but still he prevalent
conservative opinion was that the measure was
no more than a proper cqualzIng OF CONDITIONS
f foreign Powers prevented exports oi goId D!
: ,ch means. this country was justified in adopt
inr similar measures. Then came the decision
not I, deliver for export selected gold CONS OF
the larger denomination. On which the loss III
exports would be smallest. but TO deliver CONS
according to the proportion Of each denomination
held by the Treasury, namely. foul-SevchtnN
doublc oarlcs. twO-Scvcnths eagles and one
seyentr half eagles. Thcreupon more S~lNcuia-
tor, glowlcd. Our Government, they SatJ' had
10 business to adopt moro effective measures Tor
kecping gold thar the Governments ABROAD haa
adoptcd. BIT why not? If the cndeav0r 10
keep cold At all is justified. what wrong is there
in making that effort more effective, if possible ?
Not quite blind to the fOoli>hncSS of these OBJ
ioc,ions. one set of spectators sets mp the plea
that the efforts of the Government mist be futile.
since gold must 90 abroad if required TO settle
haIantpS. ana inc diltHlpi u 'H''N W. 49,
ucnt therefore belongs TO kindergarten
Gnancc.' But if 50. the ancient ana venerable
Governments Of Europe. intending those Which
are supposed by some people t" be the depoNi-
tories of all financial wisdom, have been chSaged
in Kindergarten finance for 4 long umc' ana
stick to it most stupidity. Or * IT childish Tor
Americans to do more effectively what Europe
tries to do inefTectiycly?
Then it is stated by authorities OF some weight
in finance thai a higher rate OF exchange ADDS
10 the sum which must be paid by the United
States on the value of all goods or securities
impoItcd. But il does nOt likewise add 10
the sums received for goods or securities
exported, we are gravely informed, because the
market prices abroad determine the amount to
be paid for them. This is clriOn>ly illogical
reasoning. Docs not the market price IN this
| country equally determine the amount which
shall be paid for goods or securities brought here
from abroad? If the change in market price
abro1d ncutralizcs the advantage on products or
securities exported which the United States
micnt gain by reason Of a higher rate OF eX-
change, will not a corresponding alteration in
market prices here also noutIalizc the di>ld-
vantage on goods or securities imported? Is it
TO be supposed that the market pllcc here IS IN
dependent Of the rate of exchange, but that mar
ket prices abroad depend upon that rate?
The truth about the matter is that a higher
rate of exchange tends TO cause larger exports
of merchandise instead Of gold, and smaller i'm
ports of merchandise as well. This IT does by
affecting at once and simultaneously the price
If which Americans can afford to sell their
wheat. corn or cotton, in order TO realize here in
| American money the sum they think it worth. and
the pIicc at which foreign houses or their agents
ca, afford 10 sell foreign goods here, III order 10
rc1liZe what those goods may cost abroad. Inc
tendency i, powerfully operative on both SIDES
| America being the worlds largest consumer OF
many important products and 1T the same time
supplying of ether products so large a proportion
rs 70 have almost a monopoly. Hence ii gold
exports are rendered less easy, the tendency is
TO force foreigners to pay more for the cotton
or other products which they take instead of
cold. or TO receive less for the cloth and sugar
and other products which they send hlther' ana
thus to lectify the interchange OF products on
terms more favorable to this country.
Because the United States has virtually placed
a premium on exports OF gold hitherto while
other nations have adopted strong measures to
prevent gold exports, the tendency mas Deeh 20
make il cheaper for those nations to take gold
instead OF merchandise from Us, but cheaper for
i lis TO take merchandise instead OF gold from
them. In 50 far rs the new regulations OF the
Treasury Department may operate to correct this
inequality, they are wise and beneficial. That
they will not arrest gold exports, when consider
| stigmatized that sort of "a Confederate as "a
man after Uriah Keeps own heart"
Now, we submit to our not yet reconstructed