The times. [volume] (Richmond, Va.) 1890-1903, 1894-08-28
oH.FoR "CoNFIDENCE"I THE SOUTH

The stranCest phenomenon with which
thoughtful men in this country are con
fronted is the Indifference Of the great
bodv Of the people 10 confidence that con-
tracts win be performed exactly as made,
when that confidence is absolutely ne
cessary to progress and prosperity. Ihelr
prosperity increases just as that conil-
dence increases. and their prosperity de-
norts Inst as that confidence dimlniSheS.
There Is 10 physical law more absolute
ly certain in its operation than this in
dustrial law, yet the people of the United
States, or, perhaps, wa should coniine
the remark TO the people Of the South,
if we are going to take in whole people
are either absolutely ignorant Of it. or
else are absolutely Indifferent 10 IT, Great
Britain. with an area Of territory Of less
than double what Virginia was before
she was divided into two States, is mistress
of the commerce Of the world, which pours
golden harvests into her lap year after
year. If we were asked what is the chief
reason for this, we should answer the rigid
and exact performance Of contracts just
as made. which has been the very breath
OF English law for centuries until 1t has
become a second nature in English society.
The result Of this is that a note Of the
Bank Of England Will pass at its face
value anywhere in the world. and In the
most out-of-the-way places will command
a premium. while a French or a German
merchant will not take a promise TO pay
of the United States Government at par.
Such is the incredible value of credit.
,..l.
what It was sixteen months ago. is illus
trative Of this also. In the spring Of 1898
the United States Government had more
than one hundred millions Of dollars Of
gold in its vaults with which 10 meet
any claim from It's demand Obligations.
Yet, because our laws threatened to bring
about Il condition Of things that would
force men 10 accept a silver dollar worth
only fifty cents. when they were entitled
TO a gold dollar worth twice as much,
we saw a state Of panic arise which ar
rested all business and covered the face
OF the land with wrecks and ruins. Fifty
millions of dollars of the gold reserve
were drawn out OF the Government vaults
by alarmed creditors. and the Govern
ment having sold its bonds and replenish-
ed its stock with fifty millions more.
nearly all Of that was drawn out, and
this reserve was reduced TO ffty-three
millions of dollars. which was its state
few days ago. Nevertheless, the Gov
eminent is far stronger to-day, and the
country Is In far better shape than they
were sixteen months ago when the Gov
ernments gold fund was more than one
hundred million of dollars. Why? Because
we have repealed the laws that threaten
10 force men 10 take silver dollar worth
only nifty cents. when one hundred cents
Is their due, and the confidence which
we had deliberately forfeited and thrown
away is returning 10 us
We say the Government is far stronge.
and, we may add, that II Mr.. Carlisle
VIII only pursue an idea suggested by
MIR. Manning. when he was Secretary Of
the Treasury and acted on by him. IL
can Increase its gold reserve now with
out difficulty TO all that is necessary.
When Mr.. Manning found his customs
duties being paid too largely in paper.
so that his gold holdings were being de-
pieled. he allowed his surplus TO tempora-
lily accumulate In the Treasury. BY
That means the idle paper money was
WITHDRAWN from bank vaults. the congest-
ed condition OF the money market WAC
relieved, and control OF the gold curren,
was secured. MIR. Carlisle can easily re-.
peat the operation. oh. that the people
| or the South could learn that tha,, co..