Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1893-03-05
,G1A..4aoa,.~~~-S
aronan RurLnnaE aInsoN

There Is no doubt that thc operation
of the sherman silver purchase act has
npsisted In reducing the treasury stock
of gold, but II " also truc that this u
only "A partial explanation of the gold
drain. Many people. from prejudice or
from careless superficial thinking. have
nuduly mngnihcd the results OF our sil-
yer legislation.
70 go hack couple OF years, we note
first the drain ON our gold caused BY tha
Barring panic, by the forced snles Of
American stocks, by the draft OF Russia
ON ita European hunk deposits and tho
fear of its further demands from that
quarter. and generally by hc deposition
Of pnnirky European capitalists Ca com
vert contracts, securities and morchnn.
disc into money, which with them, az
course. meant gold Then we next note
the Mckinley tn1h bin, which led Co
immense shipments Of merchandise mo
the United States 10 arrive before tho
law went iuto effect
NpNt. again, We note the phenomenal
demand for European wares during INC
year 1872 aud the hTt two months OF
this yenr which extraordinary deinnnd
aDppprg To- have been expressive Of the
extravaganza following the big crops 81
1901 and the large and almost unpro'
cpduntcdy uniform prosperity of our
mercantile classes. The crops Of lSDl
were FIRST sold TO pay debts and meet
ordinary expenses but the second year
develops the benefits 10 the farmer and
merchant, as then the extra yield N mp
propnatod for Injuries and superior com
forts These importationa have 10 be
paid for, aud the custOm house returns
show low much Tiny have comparative.
ly increased during the last six moths,
Again we note the diminished cxpnlis
OF Onr Tont siaplcn This - misi
"A aNaaI I'll
tau that Europe u rihg The last two
years has been passing through CONNER
cial and agricultural conditions, dlamntfi.
cnlly opposite 10 ours and therefore while
the people are seen 10 be- cAtruyugunt ln
thrir purchases and Ia the expenses OF
their European travel, the foreigners
have stinted themselves aud have been
relatively poor Al an example take tho
Cotton-5pinning Industry ANA ObscryH
that while lsD2 has been Mngularly profit
able one for American concerns Che
BriiiHh and German rpinnCrs are Az
most az badly OF oa during the Ciyil
war.
Next. II you please, note the cztraor1i-
nary absorption ~ gold hy the great
banks Of the coutiuent. This boarding
OF the yellow metal u not eOndnrtad With
reference 10 our currency conditions, 10
D. NOT due 10 deposits of gold forced upOu
them by dep0st0rs Who ore selling our
securities. France held bat fifw, If amy,
of our securities, ANA surely no ore VIII
any that ~ Immense gold accumulation
n due 10 the liquidation Of French hold
nas ~ American stocks and bonds II
n equally true hat Ausiriaus had no
American securities 10 scll, and yet che
/ big demand on the worlds stock 81 gold
during the past two years has come
primarily from these countries and sec
gndnrily from Germany and hn6slm
| TuRiand. whore oar securities have been
hold. hls not been increasing ita gold re-
serves 10 nny impui1Ant pNiaut 10 iar
rs Eneland has Increased its gold, u hng
| been % make more secure the joint
| st0ek banks of London, which used 40
nm on au Insecure basis ~ about 10 per
cent only of cash fiucinding their
holanras with the Bank 81 Engiandj
| aenfnst liabilities The Barring panic
called public attention fo the fact tliaf
these Joint stock hanks relied tpp much
on The Bank Of Euginnd. md any ne.
| plenisling ~ their reHerfeH Do due "a
1 banking reform and nOi ~ nyihing ~.
nting 10 American finance - y true
I fLaf The persistent preaching Of foreign
L iourrals and economists against The
/ sfallifv ~ gold payments Ga The United
/ States. part o. which argument VIVA
/ based On economic principles ana part on
/ ~ general pessimistlc feeling which ~
| viro5ed ti,g prospects, eomliinod "a igduci
l Nnuidaii0n Of speculative American hold.
] in,.s and 10 some extent 20 dialodge in
1 ,'',t,e.nta end Ii tnlA way the Sherman
] suver INV haa undoubtedly operated ~
csest. gaife of American securities and
M deter puahases, aud therefore boil
! o,sifirnly ana negatively ~ exercise nn
| i,enence On gold silpmenis. That q i
ky uaraDonnt factor we 40 not believe
/ N does ror equal b weiYht the Operation
81 The ecgnOnie ln"s ~ uvnAif ttttf'
~ batter ootuDfeliead tie force of Va