Southwest-sentinel. [volume] (Silver City, N.M.) 1883-189?, 1893-01-03

rhode Journal y lBankino.

longer than it did last year, mas
much as the general conditions
are not nearly so favorable to the
United States as they were a year
ago. The condition Of the Treas
ury is not so strong as it has been
and so long as the purchase Of
silver bullion is continued there
must be a gradual weakening in
power to sustain the gold stand
ard. A large annual drain Of gold
must sooner or later have a serious
effect upon the government credit,
and in this country the credit of
the government is the basis of the
currency. For some time the
Treasury has practically paid
premium to increase its gold bal
ance by becoming liable for ex-
press charges ON currency sent to
distant points in response to the
orders Of New York banks milking
deposits of gold in the sub treasu-
ry. This device cannot be availed
of at all seasons of the year, and
certainly not when large export
alton of gold has set in. There is
an optimistic view of the subject
taken by some, that the accumu-
lated stock of gold now in the
country is so large that any drain
of the metal will have but an in
significant effect. OF course this
view must be based on the very
favorable, in the mann, financial
conditions that have prevailed
during the period this much
vaunted stock of gold has been ac-
cumulating.
These favorable conditions for
the accumulation of gold have
been due to the fact that the
United States have been and are
still upon q gold basis. just after
the war and almost up to the date
of resumption of specie payments
there had been no thought of 9TH
er than The gold standard, which
had prevailed, except when specie
payments we're suspended, from
the year 1887. During the sus-
pension ofspecie payments, wheth-
er by the banks Of the country or
by the treasury of the United
States, the depreciation of the pa
per currency was always measured
by the gold standard. 1t may be
said that from 1866 to about 1878
there was hardly a voice raised
against the gold standard; and
the holders of all securities, pub
lie or private, looked to their ul-
innate redemption at par in gold
Naturally gold flowed to a country
where it was the standard of value
and this natural flow was aided and
abetted by the Specie Resump-
tion Act, under which nearly one
hundred millions Of gold were
purchased in lump. The stock
may of gold in the world
be compared to a globule Of
quicksilver, which seems to follow
in a mass after any detached por.
ton. The upholding of the gold
standard enabled the citizens Of
the United States year after year
to demand payment in gold of al
balances due them. But the
strong faith in the gold STANDARD
has been greatly weakened by the
continued silver agitation. Time
and again the advocates of the sill
yer standard have been strong
enough to force compromises tina
have compelled the treasury t.
use its gold resources to buy sill
yer. so far, Notwithstanding thii
terrible weakening Of its powers
the treasury has maintained golC
payments. But men begin to un
derstand that il the treasury is L
sustain gold payments, it mus
cease to waste itself in purchasing
silver. Every TREASURY note is
sued under the Act of 1890 in
creases the vulnerability of th.
treasury. diminishing its power t
hold its gold. If it were not for
this sense of the growing weak
ness Of the United States to main
tain gold payments, gold, instea'
Of being exported in excess, woule
continue TO come to the countr.
as it did when the stock now ol
hand accumulated. There are n
conditions really changed, excep
that the repeated Legislative sue
cesses Of those who favor a silvo
eiandard have weakened the conf