Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-12-25

= AOcc w LII IL l. NOLl
the number of notes involves an obligation
to acquire large supply of gold AS these
notes are forced into circulation they dis
place some other form of currency and as
gold is the only money of interna tional
value 1t is steadily withdrawn from the
treasury for export.
The consequence has been that the gold
reserves OF the government have been rap
idly diminishing, while the gold obligations,
through the issue of coin notes, have been
as rapidly increasing. The stock of gold in
but on June /, 1893, it had fallen to $685.
04S.640, or nearly 100000 below the re-
serve line"
Travelling Americans and Servant
Girls.
The British ambassador turns from the
silver legislation to give a few facts that
Americans might consider with profit:
But although the Sherman act, by the
volume of paper money which has been and
is still growing into circulation, has greatly
aided the exports of gold, it cannot be said
to be solely responsible for the large out
flow of that metal from the United States
during the present year. The demand for
the metal by the Austrian government for
the purpose of establishing her currency
upon gold basis has been both large and
unusual.
1.-The balance of the merchandise trade
of the United States has been against her
for the year.
And. lastly, the enormous sums of mon
ey spent annually by Americans abroad and
sent home by servants and immigrants
must be taken into consideration. Mr.. Fos-
ter, the late Secretary of the Treasury,
stated, on February % last, before the ways
and means committee of the House of Rep
resentatives, that he estimated the amount
spent annually by Americans abroad at
$40, 900. and the servant girl fund sent
abroad at S12,0o0,000. Add to this the large
sums sent home from the United States by
the Chinese and Italians, and nearly $50,
900 of the annual gold exports from the
United States will be accounted for. More
over, these exports are more likely to in
crease than diminish in the future, and
they should not therefore, be overlooked
in specializing on the reasons for the con-
tinual outflow of gold from the United
States'
Sir Julian states the amount of money in
circulation per capita, showing an increase
from s1S.03 in 1878 to $23.Ss in 1898.
These figures would seem to prove is
the comment on that increase, that abun-
dant circulation does not necessarily bring
about great prosperity. From 1879 to 1883
the United States enjoyed the most prosper
Gus times of the last twenty years. and the
average per capita circulation during that
period was s20.6l. From 1890 to the present
time, period of great monetary stringency
and commercial depression, the average
was $23.6J.
Gold coin and gold certificates in circu-
lation decreased in the last year $685. 100,
953. while silver dollars. silver certificates
and treasury notes based on silver increas-
ed in the same period si1.aIS, 58a. The gold
receipts of the government, which I'm July,
1890. amounted to over 95 per cent of the
total receipts from customs, have fallen to
less than l per cent.
This substitution of silver for gold has
been the principal factor in bringing about
the existing depression, for it has pro-
duced a thorough dstrust abroad and
among business men in this country in the
ability of the United States to maintain
gold payments. the result Of which has been
the sale of an enormous amount of Ameri-
can securities held by foreigners and con-
traction of credits and a general disinclina-
ton to undertake new business enterprises
in the United States.
"In examining the results of this silver
legislation It is difficult to see what benefit
the silver mine owners have derived from
it, for. although It's purpose has been to
maintain the price of silver, its effect has
been to depreciate it. Notwithstanding the
enormous purchases Of silver under the act
of 1890, silver has fallen from 96 cents an
ounce on April !. 1890. to 13 cents an ounce
at the present time, and has been Is low as
60 cents an ounce. Moreover. the stock of
un coined silver stored in the vaults of the
treasury. which represents the product of
all the silver mines in this country for the
past two wears. is a continual menace ia
the market.
EVERY ounce or silver StOref increases
the visible supply of the commodity and de-
nreciates the price: and If Congress shoul,
direct that II be sold, the fact that this
huge quantity was for sale would cause a
further serious fall in prices"
Complimenting Bourl<e Cochran.
IT IS a question whether our statesmen
like to be admired by Great Britain. Doubt
less they prefer the approval of their own
col sciences and murmurs of appreciation
fl ON satisfied constituents. but, whether he
likes ii or not, Mr.. Cochran has ELECTED a
note OF admiration from the British lion.
Sir Julian Pauncefote quotes his financial
utterances:
Mr.. Bourke Cochran. one of the most
able of the democratic leaders in the House
of Representatives., says: Economic laws
are not the product of legislation; they are
the result OF forces which no one country
can affect, and which the continual iegisla-
ton of all nations could not permanently
control. An attempt to compromise an
economic law is about as intelligent pro-
ceeding as an attempt TO compromise the
state of the weather or the course OF the
seasons. . There is no sensible middle
course between the free coinage of silver
and the total characterization of silver
The ambassador concludes, however that
all may yet be well with the Sherman act
repealed.
"Should Congress determine upon a gold
standard IL is certain that the United States
will hold very strong position, for she is
not an exporter of luNuries, but necessaries.
The things which she has to sell are essen
tial to the support of life. Whatever may
large proportion of it must necessarily flow
n her shores