Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-25
AS OTHERS SEE US
The British Ambassador on Ameri-
can Financial Conditions.
THE CAUSES OF DEPRESSION
Facts and Deductions as Presented
to the British Government.
SOMETHING OF THE FUTURE
SOMETHING OF THE FUTURE

SOMETHING OF THE FUTURE
OF course the United States knows how
to manage its own business. We are not
seeking advice from foreign potentates and
powers about our tariff or our finances to
any considerable extent. 1t is interesting,
nevertheless, to know what they think of
US. Few persons realize what a watch is
kept upon our motions by the great nations
who have close business relations with this
country. There is no move made in the
legislative or executive branches of the gov
eminent that is not scanned for its possible
effect upon our business interests and upon
theirs.
Great Britain is always on the watch and
vigilant to detect in advance any action
that might have an effect upon her mar
kets. her SUPPLIES or her investments.
Sir Julian Pauncefote has recently report
ed to Lord Roseberry, chief of the British
foreign Office. facts and deductions that
sound as though they might emanate from
some Of our legislators or statisticians.
He says: 1.-The principal features Of the
last four financial years have been the
gradual shrinkage of the surplus and the
increase in the government expenditures.
In the spring of 1889. when. the republic
can party came into power. there was a
surplus in the treasury Of upward Of
500, 100000. Last year 1t was barely
$40, 100000. This year it will hardly reach
S2,OOOOOO, mad next year there will proba-
bly, be a deficit.
"The chief causes OF this change have
been the extravaganza of the Fffty-first
and Fifty-second Congresses, the reduc-
ton in revenues due to the Mckinley act
nd fhn TN In ha ma M
of pensions:
pensions by the United States government
did not exceed $3O,OOO,OO In 1891 1t had
risen to 1914, AIS. 900. and during the present
fiscal year 1t reached a total OF over
100000. Fifteen years after the war
there were 25O,SOO pensioners on the rolls.
Four years ago there were less than
100000, and this year there are over
100000
The Financial Depression.
Decidedly it would be no use for the Brit
ish ambassador to seek for a situation to
write campaign literature for the repub-
lican party.
Here are some more Remarks on the
present monetary situation in the United
States"
1.-The present fiscal year has been marked
by great financial depression in the United
States. There has been a vast fall in all
sorts of securities dealt In on the New York
stock exchange, amounting to deprecia-
ton of no less than s1OO,O0O.OOO. Failures
have been numerous all over the country,
the total liabilities of all the failures which
occurred during the first six months of
1888 amounting to $16S,O0OOO0. against
S62.OOO,OOO for the same period In ls92
showing an increase of $1O6OOO,OOO.
Many western land companies have sus-
pended. and their suspension has been fol-
lowed by the stoppage of mnumerabie small
western banks. which were doing business
xt.ifb TO-, mol aradi nd
In short, the year has been most disastrous
"A variety of causes has brought about
this state of affairs. A short corn crop and
the low price of cotton last autumn cut
down the railroad earnings and caused
much loss to the cotton mills. The iron and
steel industries became congested, owing
to the sudden cessation of railway extern
sion.
to meet their debts owing to the low price
of wheat and money was needed to give
them relief. The balance of merchandise
trade for the first time I'm many years be-
gan to set steadily against the United
States, gold began to be exported in alarm
ing proportions and the great stringency re-
sulting therefrom forced thousands Of spec
ulating accounts into liquidation: But per-
haps the chief and fundamental cause of
the depression has been the silver legisla-
ton of Congress-.
Silver Legislation.
A brief analysis of the history of silver
legislation is given for the information of
her majesty's cabinet
1.-THE operations of the United States mint
commenced in 1892 and from that time to
1873 the total amount of silver dollars coin
ed was S,U45,S3S In 1873 the coinage of
silver was stopped by act of Congress- but
in 1878 it was resumed under the Bland act,
by the terms of which the Secretary of the
Treasury was directed to purchase and
coin into standard silver dollars of 412 ID
grains each, not less than 100000 dollars
worth nor more than 4,0o0.o0a dollars worth
of silver bullion each month. Under this
act the government coined silver dollars to
the amount of SiIS 1963t3. But the sill
yer advocates in Congress were not salts
fled with this enormous absorption of silver
and OH June, 1SO, the Senate passed a bill
for the unrestricted coinage of silver for in
dividuals into legal dollars at the ratio of
16 to /. and the issue of paper certificates
against such dollars. There was a strong
probability that this bill would pass the
lower house. and as a compromise measure
the act of July II. 1870, was passed which
required the monthly purchase by the
Treasury Department of 4.5OOOO ounces of
silver. and the coinage into silver dollars.
monthly. until July 1, 1891, of 2O00.Oo0
ounces Of the silver so purchased the coin
age of silver dollars after that date being
left to the discretion of the Secretary of the
Tren Sury.
Under the operation Of this act the
treasury has nurchaS al 10 d13 30 ounces of
silver at a cost of Ia. 591, 500 dollars
"Of this there has been coined into silver
dollars 30.0S7.o+0 ounces, making the total
coinage of silver dollars Gncluding the
recoinage Of trade dollars into standard dol
lars1 from February %, 1878, to June l. 1Sl2.
419 80 2oJ dollars (or more than 20 times
as much as was coined during previous.
period Of eiehtv-one years}. leaving in the
treasury 123.9111S5 ounces of fine silver I'M
coined
AT the market nrice of silver on Iuna I.
1893 (S2c. per oz) the loss on this bullion
purchased bv the government amounted on
that dav to 50 5tSf's dollars. At the pres
ent moment har silver is only worth a."
per ounce. entailing an additional loss Of
H5S3, 432 dollars upon the government"
The sherman Law.
Sir Julian comments on the practical
workings Of the late Sherman act thus:
"In payment Of the silver purchased I'M
der the Sherman act the government is
sues notes payable in COIN The act how
ever, REQUIRES the government to maintain
tho parity between gold and silver and in
order to comply with this provision they are
forced to redeem the notes I'm gold or in an
amount Of silver equal to their face value
in gold. Both the republican and democrat
ic Secretaries of the Treasury have So in
terpreted the act and under this interpre-
to tion the silver purchased nv the gov arn-
ment cannot be used in redemption of the
coin notes. A statement issued nv Mr. Car
Isle Secretary Of the Trea snrv covering
eleven months. shows that during that time
the silver bullion nurchas ed amounted to
nearly N 0O000 dollars worth and all hut
about OO0 100 dollars Of this was paid for
III l.