The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1893-05-12
rhe Recent Exportation of cod.

the last two months on account of the
exportation Of gold. The mere fact
that considerable quantities of this
metal have been shipped abroad is not
unprecedented nor even unusual. But
it will be remembered that at the time
of the resumption of specie payments
in 1879, the treasury had accumulated
stock of 500, 100000 of gold with
which to redeem such of the green
back treasury notes as might be pre-
sented. Subsequently IA law was en-
acted requiring that rs redeemed the
greenbacks should be re-issuea. At
this time there were nominally out
standing 1916, ,016 of greenbacks.
The transactions of the treasury re-
suited in the accumulation of varying
quantities of gold, but until very re-
Gently the amount in the vaults was
always more than the above mentioned
500, 100000. Presently this sum came
to be looked upon and treated as u
sacred treasure which could not be in
vaded without financial sacrilege. But
the recent continued expectation of
gold, which in almost every case was
drawn from the. treasury in exchange
for some form of our paper money,
reduced the supply of that metal, over
and above the 800, 900, 900, to a very
narrow margin, and the demand for
further shipments made it evident
that either mors gold must be obtained
for the treasury, the 100000 must be
drawn upon, or the secretary must
avail himself of the option of paying
silver in redemption of paper mo ney.
Now the silver dollar is worth for
shipment abroad about So cents in
tgold, so that to use this metal in filling
Wall street orders for foreign ship
ment. even though unquestionably au-
thorized by the Sherman act of 1890,
was in the estimation of Wall street,
not to be thought of. Western bank
ers promptly proposed to Secretary
Carlisle to. exchange all the gold they
had for treasury notes, and consider
able gold was thus placed at the dis
bankers insisted that the only proper
| way to meet the situation was for the
government to issue interest bearing
bonds and that if such bonds
could be made part of their
reserve they would exchange gold for
them. The sum of 100000 was
suggested as the proper amount of
such bonds. Indeed, it has been
charged by papers of ali parties that
the demand for gold for foreign ship
ment is largelyan artificial one. fos-
tered by Wall street for the purpose of
compelling the government to issue
bonds. That there would be great
profit TO the bankers should exchange
their gold for bonds on the term pro-
/ posed is not doubted. The New York
World figures that th4 banks. under
the proposed 4 per cent 1O-year plan
to be sold at such a price as to make
the net rate per cent, would pay
1111, or in the aggregate $50, 100000
in gold for the bonds. The World then
says:
Amy national bank may deposit
United States bonds and draw from
the government, with the bonds max
ing the guarantee Of the government
good upon them, national bank notes
to the amount of 90 per cent, so that
at once the bond buyers would have
100000 in cash back in the vaults
from which the gold had just been
taken. This money is just as good as
, any for any business man to take in
t loans, and it would promptly go out in
exchange for gilt-edge paper in mort.
cages, on stock collateral and all the
either handy forms of security known
to the banking world.
Nov, taking the average 6 pei
cent, which banks get through the
busy winters and the reduced interest
accepted in su@mei, it is fair to calcu.
late the income Of the money on loan
at per Gent. The government pays
its interest quarterly 50 that at the
end OF sl1e first three months after the
loan had been made ths government
would hand over 5000 in interest
Tor one-quarter of the 81, 900. O0O which
r would be the yearly interest on $50.-
100000 at per cent. This money
would at once go to the loaning pile
and begin bringing IN its share Of the
5 pei cent interest. There would be
losses, theirs would be the government
taxes. bit 5hsfe would Be the com
pound interest to earn income upon.
Suppose the bankers favorite plan
-lwas accepted By the government, and
: that asstart was made on Jaly i next.
2 There would be transfer from vault
: to sub-treasury Of $50. $50. 900 in gold.
sRhile. deposited to the credit Of the
: advancing banks there would be $50