Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1893-08-03
HOW MUCH GOLD THERE IS
The Fallacy of a Very Com
mon Assumption.
GOLD HAS NOT GROWN SCARCER
But is More Than Keeping
Pace With Business.

n. Y. Evening Post.

backward very rapidly OF late, since the |
decentralization of their favorite metal |
by India, have made their final stand
on the proposition that there is not |
enough gold to do the business OF the
world. This is their last ditch. None |
of them has ever told us how much gold
there is in the world, coined or un-
coined. None of them has ever told us
how much business" there is in the
world. None of them has ever told or
guessed what amount of gold would be
sufficient to do the business of the
world. None of them has ever in
formed us what is the numerical ratio
between gold and Cuisines" None Of
them has ever proved that the double
standard would increase the amount OF
money with which TO do the business of
the world, whereas the contention on
the other side is that the double stand
ard is simply an alternate standard, CIV
ing US first gold and then silver, but
never for any great length of time both
gold and silver together Yet we have
this phrase ding-donged in our ears all
the time; "There is not enough gold to
do the business of the world" Here Is
the Kansas City Star repeating this I'M
meaning phrase--not using any argu.
ments, of course, because there are
none, but offering us its own valuable
opinion. The state of its ideas on the
general subject may be inferred from
the following paragraph;
Europe has drawn gold from this coun-
try simply by putting premium on 1t.
OF course the United States could have re-
tanned the gold ii it had held it at higher
tN a.,
But times were more prosperous in this
country than in Europe aud the United
States did not feel called upon to retard in
ternational trade by such methods.
1t is evident that this writer thinks
that Europe has drawn gold from this
country by paying 101 cents worth of
| gold value for 100 cents worth of gold /,
or by some such hocus- pocus, and that
we can get this gold back by bidding
| 1902 cents of like gold value for il, but
that we are not such fools as to do that.
1t may be as well TO explain what is
really meant by paying premium for
| gold. No country is bound by its none.
tary system or by moral law to pay any
thing better than Its own gold coin. This
coin differs in different countries in the
amount of alloy which it contains. The
Bank of England cannot charge a
premium for sovereigns. 1t must pay
them at par whenever demanded by the
holder of check or by the holder Of
its notes. But it can charge a premium
for gold bars or for any American eagles
it happens TO have. The English ex.
porter or American importer OF gold can
make his choice whether he will take
sovereigns at par or whether he will
take eagles or bars at premium. II he
takes eagles, they will go into circula-
ton the moment they arrive here, and
that is an advantage to him. If he takes
bars, they are accepted at the mint OF
sub-treasury without delay. If he &C.
cepts sovereigns, they must be weighed
and assayed. There is always a little
abrasion of coin within the limits Of
tolerance. This abrasion, in lot OF
100000 sovereigns, is something of a
loss--not very much, but still sufficient
to warrant the payment of u small
premium for bars or eagles.
The same rule works when gold is ex
ported from this country. Formerly oui
treasury paid out gold bars or coin al
the option of the person craving il
That was the law. If he were an ex
porter he chose bars, of course. But two
or three years ago Congress changed tn,
law. Unauthorized the treasury to charg,
a premium for bars, or to refuse then
altogether, and pay coin instead. Since
that law was passed we have been OF
exactly the same footing as the Bank O
England. The premium in each case il
the price Of convenience. To talk of ,
,, premium on gold payable in gold is I,
! talk nonsense.
The situation of the Bank of Franc
is somewhat different. This institution
i is required to receive silver five.fran
pieces on deposit the same as gold Til
, bank is private corporation. 1t is or
3 ganized tor the purpose of maxim
, money tor its shareholders. The banI
: did not tissue" the silver five-fran
: pieces. 1t has no more responsibility 10
a them than any private person has. No
: has II any responsibility for keepiul
y them at par with gold, 1t has the lega
4 Fight and the moral right 10 pay on
y these tive-ffanc pieces to the people VIII
= deposited them, i. e., To the public in
= discriminatory. Now we are told tina
= the Bank of France exacts a premium
y for gold when wanted by exporters, an
this fact is pointed to as a reason VIII
our Treasury ought to do the same thint
II is true that the Bank of France doe
exact small premium on gold whe
i. wanted for export. This is a profit !
the bank and a loss to French mel
/ chants. IL is matter of private bus
# ness altogether, with which the govern
ment has no more concern than it ha
2 with the prices of petroleum or {
/, champagne. There is limit to III
premium which the bank can charp
I; for gold. This gold, it should be n
a membered, is wanted to pay Frenc
,. debts in other countries, or to Blu
n necessary goods from those countrie
l. as wheat or cotton. Suppose the ban
.. should refuse gold altogether Tht
:, TACT would not relieve French debto
r from their obligations to foreigners ne
o would 1t relieve French consumers frol
!. the need of wheat and cotton or whateyt
e it is that they find It necessary to impor
n Being refused gold, they would have
Y pay with something else. As the 70
" eigners would not take silver coins, Ii
IS French people would be obliged to ri
s. down the prices of their own good
" wines, silks, &C., TO a point wbe
Of foreigners would accept those things il
stead of gold. This would disarrani
a, French trade and react unfavorabIy
a the bank. Therefore, there is a WEI
g defined limit to the premium which Il
se bank can charge for gold. Some Of o.
silverites say that the bank maintai
the parity of gold and silver coins
France by charging premium for go
IN when wanted for export. This is iii
W saying that parity is maintained by dI
at parity. Silver IS at par in Fran
at simply because it is not redundant, d
IN mint having stopped coming it TWEEN