The herald., 1893-08-10
brought great section to its senses, and
that is something.
A WARNING AND A.LBSS0N.

In these times when very wild ideaI
prevail about the capacity Of the gole
stock of the world to meet the exigencieI
of trade. it is well to take account o
that stock and see how much OF it il
available. The American Bi-Metallit
League makes the following estimates o.
the existing stocks OF gold in the world
Russia, $500, ,000,0 900; France. $34O..
100000; Germany. $2l5, 100000: Eng
land. 1920, ,00O, 600; Austro- Hungary
$50, ,00O, 900; Spain, Netherlands, Italy
and Turkey. s125. .000, 900; United States
treasury, $202, 900 600; banks in the
United States, $l9S,000, 900. This forms
total of $l.950, 900 900. Assuming the
entire stock of gold to be So, 500, ,000, 900,
there remains 81 $50 600. 900 to be &C.
counted for. The amount of 81 ,250 900,
900 is traced to Asia, and it is supposed
that there is from $500 900 900 to $780,
C00,000 in general circulation and con-
sequently not under the control OF gov
| ernments or banks.
The highest estimate we have seen OF
the silver stock of the world is $780,
000,0 900, so that the difference between
the total amount of each metal is not
great enough to form any friction that
would lead to non-psrity. But we are
confronted with this great difficulty
when we come to consider the question
of.making gold the single money stan
dard. The great bulk of the available
gold is under control of the govern
ments, so that if the business OF all the
nations must be dependent upon that
metal alone, it is in the power of any
government to produce financial panic
at any time. But it is curious in this
connection, and fact of striking i'm
portance in any consideration of the
question: that while any government
can produce financial panic under the
circumstances, no government has the
power to allay it or to restore the con-
fidence thus violently disturbed. It
can undoubtedly, BY wise cooperation
with financial institutions and repre-.
sentatives of business, avert panic ;
indeed. it can By drastic measures post.
pone the day. of reckoning in normal
times for an indefinite period in single
country; but whenever financial crisis
reaches out everywhere and becomes
universal, the day OF reckoning will be
apt to put in its appearance.
Great Britain is the head and front OF
the mono.metsllic nations; yet it pos-
sesses but 1920, 900. 900 OF the gold of the
world upon which it can draw. When
the Barring failure was causing the ut
most alarm in English business circles,
that country stood on the very edge of
an abyss, and had not the Bank of
France come to its assistance by loan
of $15 900, 900 in gold. there would have
been a collapse in Great Britain that
would have paralyzsd the country. On
go small hook does the destiny of
great commercial nation hang when ii
places it's fate upon single standard.
Chancellor Groschen declared at the
time that il the banks OF Great Britain
we're called upon at once to liquidate
their obligations in the yellow metal,
they could barely pay two cents on the
dollar, er ten cents on the pound sterl.
ing.
Now it is SAID .l.u.e England is the
creditor nation to other nations to the
extent OF $4,000, 100000. That rep
resents exactly what Mr.. Gresham esti-
mated the obligations of the banking
institutions of Great Britain to their
home creditors to be. Surely the inan-
cial affairs of such nation are not in
30 flourishing and safe condition that
che can afford to disparage the value OF
one half OF the metallic wealth OF the
world. She stands on very tottering
stool herself, even if it ia a golden one.
Let her continue the policy OF forcing
the silver countries to the wall. What
is the inevitable result that must follow?
Inability to pay--repudiation When
reputation comes on large scale, how
is she going to satisfy her home cred
itore, who will want their money, with
Only two cents on the dollar to meet
their demands? If she forces repudia-
ton on other countries, repudiation,
like chickens. will come home to rcost.
The United States have an example in
England not to follow, and warning in
her that teaches a lesson from which
they should derive precious gems Of
wisdom. Silver may be, fer the nonce,
under a cloud; but the day will come
whenit will prove bridge of aecurity
for the country to pass over from the
dark haunts of a great crisis into the
pleasant places of financial safety.