New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-01-16
4 DANGER Nor TO BE DESPISED.

he responsibility LOT continuance VI suNcr
purchases. if they are TO continue, is definitely
located by Senator Shernan's letter. he is
anxious to do his part nearly all the Republicans
are ready to meet the wishes of the business
world and the Senator is willing to guarantee
the passage of the repeal bill if only ten Demo
Gratis will vote for it. But that number cannot
be found, he believes, even with Mr.. Cleveland
earnestly urging action. The Democrats have
50 far entanglcd themselves with more money
and silver fanatics that they do not dare to
save the country from serious risk and from
dlscredit abroad.
Foreign rulers and fnancers fully believe tina,
the continuance of silver purchases will soon
force this country to silver basis. This belief
operates powerfully to bring about its own
realization. Because they So believe, foreign
holders of American securities are prompted b.
sell at every moderate advance. Because every
upward movement of securities is met by such
selling, other holders get disheartencd. But 1t
is not only through sales Of stocks that foreign
capital is being withdrawn. Many millions
have been loaned on mortgages in this country
especially at the West, but the number of such
loans is being rapidly reduced Millions have
been invested in land companies, cattle com
panics and manufactures of all sorts, and tho
capital thus placed has greatly aided the de-
vclopment and prosperity of the country. Blu,
it is not strlnge that foreign investors, believing
4 debascmcnt of United States currency in
ovitable, should not merely refrain from further
investments here, but draw out their capital in
many cases where they can.
These changes are to some extent in progress
even now, and no one can guess how far they
may 60 if the proposed repeal Of the silver pur-
chase law is defeated. IL makes not the least
difference whether foreign investor, are light
or wrong in their Judgment of the consequences
to this country. Their judgment. whether right
or wrong determines their own action. They
take away capital from this country. already
70 the extent Of many millions, without paving
any attention to American predictions, for they
are aware that the frce-cJinage men desire f.
force the issue as early as possible, and boast
that they have majority in both Houses Of
Ccngros People who pretend that free coinage
by the United States alone would bring count, $
blessings can hardly offer any othe. prediction
which foreign business men will consider WORTHY
# attention. What foreigners regard aS scarcely
short of insanity appears to have taken posses
sion OF 50 many States that nothing but OK
perience with q debased currency seems t.
foreigners likely to cure it.
The withdrawal of many millions Of foreign
capital necessarily lessons tho sum available foI
productive industries in this country. Thus
increase in wealth is retarded, enterprises and
industries of Importance arc embarrassed and
thousands OF individuals are compelled TO pay
loans which have enabled them to realize far
more than the interest. These are not protitable
changes for a nation having incalouable re-
sources yet undevcloped, but they are the
natural consequences OF financial course which
appears TO foreign investors to involve the ut
most risk And whether they arc in any re-
spect m stak en- or not, tho actual Withdrawal of
capital does visibly and strongly tend to weaken
the Government, to lessen its power to pay gold
on demand, and thus TO bring about the very
debascmcnt of the currency which is apprc-
hendcd.
Paper innationiSts argue that the country
needs tho monthly increase in amount of crcu-
lation. But the fact is that it has actually lost
of late moro in gold than it has gained in paper.
and yet the outgo of foreign capital is nothing
to what it may become when tho decision to
continue purchases of silver is made known
This is not an imaginary but a very real danger,
and while all will hope it may be avcrted, the
only sure way to do so is to stop buying silver.