New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-03
Tile HELIION RESEHCE.

An earnest protest ought u be entered
against the idea that the gold reserve, which
was formed and has been maintained for the
sole purpose of rcdceming Oh demand United
states notes in any emergency, cannot be used
nor any part Of il for that very purpose with
ont involving the Treasury in disaster or bank
ruptcy. If this notion were correct there was
never any use in forming such reserve If
il is correct, tho Government has been most
absurdly throwing away for fourteen years in
terest on bonds which 500, 900 gold
would have paid. The reserve has really been
Of great use TO the country. and great saving
to the Treasury, worth more than the entire
amount which payment Of the bonds might
have saved but only because it gave assurance
that larger supply Of money than was ever
likely TO be demanded was ready for the re-
dcmption Of outstanding notes. To say that
no part of this reserve shall be used for that
purpose is simply to deprive the whole of any
value or force.
Il is reasoned that il tho bullion reserve
should mt any time bo once reduced slightly
below tho hundred million limit bankers and
others would instantly present $4,000, 900 or
more legal tenders, drawing the gold from the
absurd short time ago, but the curious state
of panic which some bank officials themselves
have caused and fostcrcd gives somc excuse for
tho d,;. that they might even do so foolish a
thing as to draw millions of gold from the
Treasury, at the sacrifice of interests of the
business community and their own customers.
True they would have the gold in their vaults,
but could make no use of it in current business.
They would Immediately be obliged to get
somewhere the legal tenders for daily uses, be-
cause the public would not freely use gold in
current settlements, and the banks themselves
would hoard it. The necessity of getting gold
for daily uSc the inconvenience Of holding the
$50, 900, 900 now possessed and S20,000,0 900
more as sort Of unavailable fund, which the
banks could not afford to pay ont freely, would
soon bring even the most unrcaSOning bankers
TO a sense of the situation
The very purpose of the bullion reserve, as
originally planned, was to provide a sufficient
fund for the redemption of all notes that can
at any time be withdrawn from circulation
without causing such need for notes, such
pressure to get notes for current use, as would
put and keep them at par in gold. 1t is pos
sible that 500, 900, 900 in notes might be with
drawn from circulation at this season without
producing that effect, but it is measurably GER
tain that 100000. 900 could not be, and
therefore a reserve of that amount Of gold has
been considered ample for the protection OF the
note circulation. Its value depends entirely
though upon its being used in actual with
drawal of notes from current circulation when
ever their redemption is demanded. II S5O,-
600 600 should be thus redeemed and with
drawn. what would be the currency used by
bankers and storekccpcrs in daily settlements
and by factories, mines, railroads and other
employers in payments of wages? Does any
body suppose that gold would be used ?
That would make gold cheap. Ii not gold,
where would notes be obtained? They are
nowhere boarded in large amounts. and tho