The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-05-31
MllI}la.Za gIe
VI. NJ MURDOCH Editor.
A STRAINED SITUATION.


from the pen of New York capitalist,
who has had lifetime's experience in
successful business, and who was CO.
worker with Peter Cooper, and of Il is
school of financiers, will be found else
where in this mornings EAGLE.
While we will not undertake to refute
either his declarations or logic, we desire
to suggest fact or two not elucidated
in his letter, at least not to our satisfac-
ton.
The Sherman act compels, as he
rightly says, the purchase of 1900, 600
ounces of silver bullion every month,
upon which the coinage has ceased
Now the general impression seems to be
that this bullion is paid for in the identl-
cal silver bought, or in certificates rep
resenting it. That is true only upon its
face, but it is not true in fact. These
silver certificates, as he truly says, are
better than greenbacks, superior to Ma
tional bank currency, and more handy
than gold and silver. That is all true,
and there is just where the trouble comes
in. The silver certificates, being paya-
bic in coin, and being receivable for all
debts. including duties on imports, are
in fact gold. therefore, and for one thing,
the United States is taking fOrty-eight
millions of dollars in gold every year,
mines for a bullion that Is stored away
in idIeness. If the Sherman act had
said on its face, what it says in fact:
BE it ENACTED, etc, that the United
treasury exchange $46, 900, 900 of gold
every year for that amount of silver"
what storm of opposition there would
have arizen. As 1T Is, the secretary of
the treasury will soon appeal in vain to
local interior banks for gold. If there
was no foreign balances against us we
might have run the Sherman act two or
years longer without feeling it, but we
can't pay gold out continually with
nothing, but silver certificates coming IN.
The right way to keep the pail full is
not by continually pouring in more
water, butby soldering UP the leak. 1t
looks as if the right way to keep the
gold reserve intact is not by appealing
to private interests, not to try issuing adj
ditional . per cent bonds, or anything
of theIkind, but by stopping an unnec-
cessary output of gold. The Sherman
act can never bring about parity be-
tween gold and silver II is an act
which in increasing the supply of silver,
decreases the supply of gold.
We do not say this because of any de-
sire to bring on any discussion with the
New York financier who writes the
letter referred to for our columns. for
we win not permit a discussion in these
columns between the editor and anyone,
but we desire in conclusion, to merely
suggest that we as nation have been
endeavoring to change the natural rela-
tons between the relative values of the |
two metals. We have found or are find |
ing the policy threatening one, at least /
the business of the country today is |
holding the Sherman law responsible for |
the increasing number of failures, If /
this be true. would we not find relief by |
tie withdrawal of the forced restraints |
we havsput on the circulation of gold
and the artificial stimulus we have given !
TO the circulation of silver? Is it not |
true that the more precious metal is |
going away, out of the country, in an
increasing volume, and that it is also |
being driven from circulatien-in &C !
cordance with the Gresham law-and |
that the hoped for parity, or equilibrium,
of gold and silver is farther off than
when the Sherman law was first enacted? |
|