The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1893-04-29
The Financial Situation.

fla gold reserve is of any practical nse
it is to protect the credit of The govern
ment and to maintain the value Il govern
ment currency. The reserve las been
fixed at one hundred millions u dollars
Il has usually been much greater than that
amoupt. In 1890 it was sl77 100 900,
and about a year later it fell To Sal .00O,-
900 and on january 81, 1892, the reserve
had shrunk TO slI9,O00, 600 In January
This year ii amounted To Sl0S.O00, 600,
and last week was several millions below
the hundred million mark
Several causes contributed 10 this result.
the Barring Bros failure and the free coin
ace agitation. English holders of Ameri-
can securities sold to raise funds TO tide
over financial straits in the first place, and
then TO avoid the risk of the country going
to silver basis aud having their securities
Maid in silver. which has no legal tender
value in Europe. For the past year, too,
our imports have largely exceeded our ex-
ports. and large amount of gold has been
shipped from the country to settle the
balance against Us.
Since the reserve has declined, by reason
Of the demand for gold for foreign ship
,ent IN the 500 .O00. 900 limit, there has
been considerable anxiety in financial cir
eles. and this has been contributed to by
the daily press, the only press that is able,
in the opinion of the Baltimore San, to
discuss inteilieently great questions. These
correspondents have not only created the
imnression that financial disaster would
f,,lIow as soon as the reserve should fall
below the 800 900, 900 limit, but also the
impression that there was serious differ
enee between the President and Mr.. Car
Isle. the Secretary of the Treasury To
such an exten. was the daily press, this
preSs that eau be counted upon to reason
ably and ably discuss questions of public
Importance. for fear of criticism from their
educated readers" contributing to tnan-
ciaI uneasiness, Mr. Cleveland felt con-
strained to speak On Saturday he gave
out for publication the following statement !:
The inclination on The part Of the public
10 .ccep; newspaper reports concerning the
intentions Of those charged with the manage
,n,ut If our national finances seems TO justify
nav emphatic contradiction OF The statement
that The redemption of any kind Of treasury
notes EXCEPT in gold has al any time been
determined upon or contemplated By the Sec
r,.tary of the Treasury o. any other member
Of tb.. administration. The President and
hi. cabinet are absolutely harmonious IN the
determination to exercise every power con
f,.rred upon them TO maintain the public credit,
IN keen the public faith and TO preserve the
rarity between gold aud silver and between
an financial obligations of the government
while the law of 1891, forcing the pur-
chase of "A fixed amount OF silver every month,
provides that the Secretary OF the Treasury;
in his discretion, may redeem IN either gold
or silver the treasury notes given in payment
of SILVER purchases. vet the declaration of the
soliey OF The government. 10 maintain the
ir Ia regulate. this discretion IN dictate
their redemption in gold.
..Of course perDlexities and ditheuiiies
have grown out OF an unfortunate financial
policy which We found in vogue aad embar
easements have arisen from i'll advised Imam
s.ial legislation confronting At every turn.
Int with cheerful confidence among the people
aud IL patriotic disposition 10 co operate threat
ened dangers will be averted pending a leg
is!..iive rtliirn to a bettrrand sounder financial
plan.
'.The strong credit Of the country. still gn
impaired. aad the good seHse of our people,
which h,s never failed ~ time of need ave
at hand To save from disaster
MOI only doe, the President deny the
newspaper reports of a disagreement upon
che matter of paying ont gold, but be also
tells the people that whatever Of embarAss-
ment the Administration has met with re-
suits from financial system built up under
Republican rule He does not believe the
situation beyond relief, and ali powers will
he exeried to preserve the parity between
gold and silver.