New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-07-22

one nelghbOrh0Od after another so 1uichiS "S "'S-
trust 1t is undoubtedly true that thus apprehension
On the part of the protected industries stimulated
an unusual anxiety in regard to our currency and
finances
when we resumed specie payments there
was q discussion between the Secretary oil
the Treasury and the bankers as to whether
fifty or hundred millions of gold in the
Treasury would be q sufficient reserve against any
emergency The final decision in the matter was
in favor of a hundred millions Since that
time the country has looked upon that hun
drcd millions in the Treasury as the barometer
Of the solvency Of the United States As long
as the hundred millions unimpaircd we were
on gold basis. When the amount fell below a
hundred millions were drifting to silver or
fiat money and bankruptcy.
THE GOLD RESERVE BUGBEAR.
This. in reality was nothing more than
pure sentiment, and based upon an arbitrary
figure As long, however as mems imagination
exists. sentiment, rather than sense will govern
the world When the reserve touched a figure
below one hundred millions the shock was felt all
over this country and in every financial centre In
the world"
"Has it been your opinion that the President
was right -in-hs views on the problem"
"Ths fact" answered Mr.. Dcpew, that Mr.
Cleveland was known to he sound on financial
questions did rot allay the terror, because the
country believed that an overwhelming majority
of the members Of his party were against him,
and that the Secretary Of the Treasury was not
in aeebrd with the President on this question
beifeTe that if the gold reserve had been kept
above a hundred millions by the sale oil bonds,
that sale having been made Immediately ana be-
fore the deficiency occurred, that much OF the
have
that very few bonds would have had to be sold
The Treas,tryoof the United States is no exception
10 the universal rule of the savings bank depostor'
who II he thinks his money is in the bank, does
not want it, but if he fears that it is not In the
bank wants il right away.
Notwithstanding the vast transactions between
this country and Europe, even the best informed
Furoscon statesmen know very little OF our
political conditions and possibilities, ana ''ieir
flnanciers and investors know less. 1t was UNI
versaly believed In Europe that we were oIh'inS
10 a silver basis, and that we would reach uaV
basis either by the direct enactment, as soon as
Congress met of free coinage law, or oy 'he
silver men being strong enough 10 prevent any
rcpeal of the purchasing clause OF the oheruoh
act. The holders of our securities on the o'her
side feared that they would receive their inter
est aud dividends in silver worth from oo 10 30
cents on the dollar, and the principal In 'he same
way They sold right and left TO protect them
selves against this assumed loss. They also with
drew their money from this side To this proc
ess WAS added the immense withdrawal OF cur
rency. not only by savings banks TO meet runs
and Inv timid dcpositors who did not understand
finance but by professional and business men OF
large experience many of whom | know per-
sonally. who turned all their available means INTO
cash and locked it up in the keeping OF safe
deposit companies.
BUSINESS OF THE RAILROADS.
The absurdty of the present scare from the
business standpoint is illustrated by the general
conditions of the country. 1t is not bank fali-
inc here and there, in congestcd districts, but
n is the conditions as they exist in small "a well
as biz centres of industry everywhere when lhdi-
cate MIR situation. The best barometer OF business
is the railroads III people doing well they travel
IL they are not doing well IT Is the one enjoyment
which with the least possible sacrlhce tncN
can afford to do without. The movement oil
freight is a criterion of the intcrchangcs OF our
internal commerce The principal railroads of the
country showed an increase in both the freight
ard passenger business for the month OF june
and also for the quarter ending juno
81. know that in our entire system
that was the rule The New-iork Central
has no exceptional business such as coal or
iron for instance nor is il near enough 80 Chi
caro to be as vet much affected ly the surplu,
passenger traffic in connection with the Worid
Fair Its revenue is derived from the general
business which comes TO it from its CONNECTING
lines and which originates along Its own lines
From this you may perceive that 1t indicates
with accuracy the financial and business conditions
as they exist The New York Central earnings in
creased in April 1898. over April lS92, 81 $4,000,
in round numbers: in May S35S,000. and in June
$4,000. This. too, remember. during the three
months when the gentlemen in the Stock Exchange,
who profess 70 believe that there is no value in
ANYTHING were sedulousy asserting that such was
the fact and that all enterprises were on the
eve of bankruptcy and all business was stasnant
These conditions show conclusivcly that if the
normal conditions OF confidence had existed
general business which prosperous in spite
Of financial difficulties at financial centres would
have made the year S0S one Of our best years
WILD COLORADO UTTERANCEs
THE operation OF the feeling Of Gistrust and
the way in which at such times adverse things
are taken for granted without Investigation arc
unhappily illustrated in the conditions at Den
vcr Col. A mass meeting, at which the Governor
of the State the principal speaker, declares that
silver mining is the industry upon which the
prosperity Of the State depends; that, unless the
government buys silver at from 10 TO % per
cent more than its market value, Colorado can
not afford to mine il, and that If Colorado stops
mining silver she cannot pay her debts and as
a consequence all her business will he stopped
and her territory dcTopnlatcd. It. required only
a little Examination to show the utter a'surdity
of these rawlings. Colorado would be prosperous
State il she produced silver. She has coal,
iron, grazing and agricultural lands anI
opportunities which have scarcely besun 10
be developed 1t is demonstrated too
that She can produce silver at profit, and
hold hyoown and meet the general commercai
demands which will always exist for the metal
Ent ~ HfaVb"dy read these utteranccs, and they
were aaaffed abroad and accepted as truth. The
amusing. but distressing spectacle was presented Of
the rest OF the United States and the whole OF
Europe taking up whatever they could lay their
LanIs nm of their BELONGINGS. and getting