New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-31
THE OUTGO OF GOLD.

THE OUTGO OF GOLD.
Once more exports of gold have suddenly
increased, and this time the change cannot be
attributed mainly to Russian or AUSTRIAN or
other European demands, and probably only III
part to the Australian troubles. The gold goes
out in large measure because this country mas
transferred the control of its government 10
party which insists upon using its silver instead
of gold as the basis of its currency. In an
ticipation of struggle in Congress, which
many apprehend may result in the passage OF
some dangerous compromise measure, much OF
the gold in the country is withdrawn from
active use, and foreigners are Withdrawing part
of their capital from American investments.
In conversation regarding the financial future
Senator Allison states that he expects an extra
session of Congress in September, which it Is
the obvious duty of every Republican to at
tend. but he doubts whether any settlement
of the silver question will be reached. lie ex-
presses the opinion that the Sherman Silver
Purchase act will not be repealed, unless by
the passage of some other measure that is more
satisfactory to the silver men, His judgment,
like that of Colonel Morrison, is based upon
long experience in Congress, and extensive
knowledge Of the opinions and wishes OF West
ern and Southern people. 1t is dishearten-
ing thought that no useful legislation can be
confidently expected, even when an extra seS-
sion comes, and yet it is best for all concerned
that there should be no more decisions about
the matter. The Presidents abest friends
have declared that he would Of course have
called an extra session of Congress as soon as
he could, had he not been convinced that, IN
the temper which then existed, Congress would
not have repealed tho Sherman act, but would
have substituted free coinage bill.
Unless President Cleveland is greatly mis-
represented by his friends, he is relying mainly
upon the effects of financial pressure and COM
mercial disasters to change the minds of Dem
ocrats regarding the silver question. Blu. the
evidences of such change do not appear On
the contrary, it is Observed just as TIE TRIB-
UNE has repeatedly anticipated, that the silver
extremists of the West and South are only
rendered more bitter angry and desperately
determined by calamities which they constantly
attribute to the Vaccinations of "gold bugs"
| Their notion is that there would be plenty OF
money, and cheap enough money, if Congress
| had made silver coinage free, and that strln-
gency has come only because bankers and other
money lenders have conspired to make money
| artiicially scarce. Remind them that $780,
| 900, 900 in gold has gone abroad this year, and
they reply that twice as much bullion might
! have been added to the circulation without
difficulty. Show them that apprehension has
already pushed almost wholly from commercial
use several hundred millions of gold coin. thus
virtually contracting the currency, and the an
swer is that the scramble for gold would cease
at once with free silver coinage as it would
give the country certainty of all the currency
it could require. These notions are almost in
conceivably foolish, but it is a fact that they
are held with fanatcal intensity of conviction
by some millions Of Democratic and Populist
! voters.
1t is not improbable tnat more failures and
more losses may occur before Congress can be
brought together and from present appear
ances it is not unlikely that these may further
intensity the prejudices and passions of silver
men. and widen the breach between the Pres
ident and the majority of his party. Other
events will naturally contribute to this an
tagonism of feeling, particularly the appoint
ments which are constantly being made, each
| involving sore disappointment to many active
| Democrats. When the President calls Con-
gross together there will doubtless be already
prepared tariff bill which the Administration
will urge as a party measure. But any such
bill must give offence to many members OF the
party, since it is impossible to frame one which
would not conflict with the local or personal
interests of many. Resentment at the attempt
cd dctaton by the President in the silver bust
ness may be strengthened by resentment at the
tariff bill thus prepared in advance of the
session of Congress. All these things tend 10
make the Presidents position more difficult,
and sensible action by Congress on the finances
more improbable.
1t may be 'rcckoned extremely probable that
the President will strive hard to find some point
of accord with his party on the finances. 1t is
already given out, as if by authority, that he
may be induced to sign bill for free coinage
at the ratio of 20 to !, If he can thereby get
the Sherman act repealed and the silver qucs-
ton settled. But he may possibly discover, be-
fore the time comes. that the silver question
cannot be settled in that way. 1t is most
natural that he should be anxious to get a
tariff bill passed. and, therefore, to avoid such
rupture on financial questions as might pre-
vent united party action on other matters
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THE NICARAGUAN RETOLUIION