The times. [volume] (Richmond, Va.) 1890-1903, 1894-05-06
THE DEA1N ON OUR GOLD

The gold reserve which had been built
up to considerably more than slOOOOO,OO0
by the gold which Secretary Carlisle Oh
tanned by sale of Understanding bonds,
has gone down now to s95,0o0,0c0. This
has been through Withdrawals OF gold
TO export to Europe, and that at time
when there should he no export Of gold
in the natural order OF things, because
the balance of trade has been heavily in
our favor during ali the time that the
export was taking place. There can be
only one explanation Of this seeming
paradox. Somebody abroad has had need
for actual gold coin. II is easier to secure
It In America than anywhere else, be-
cause our public Treasury contains this
large sum which must be surrendered TO
whOmcver brings to IL our greenbacks
or our Sherman notes. There are some
Ave hundred millions of dollars of these,
and whoever wants 81 million or so of
them can always get them from the New
York banks. with which he can draw
gold from the United States Treasury.
ought not the experience we have had
I'm this matter to be sufficient to teach
US the false basis on which our entire
monetary system rests? Here we so on
selling Understanding bonds TO get gold,
which we hold at the demand and call
OF whatever nation finds itself in need
~ 81 l. L. y
us without compensation, and we are
left 10 continue paying interest on the
debt we incurred TO secure IT. Any sys-
TEN must be vicious which produces
such a result. and the vice In it lies in
the fool idea that 1t is part of a govern
menrs duty to provide money for the
people by letting them use its credit.
There is but one money. and that is
coin. and all connection which the Gov
eminent can properly have with that is
20 coin Il into shapes and stamp on each
one the quantity of the precious metal
which that one contains. When men
stipuate for money they stipuate FOR
this coin. 1t is true that 1t is only In
the rarest Instances that they actually
get the coin, because paper substitutes
for the coin are far more easily handled,
and 30 long as men have absolute conh-
dence that the paper substitute can ne
converted into coin they had much
rather have the paper substitute than the
coin. But the furnishing OF those paper
substitutes is just as much matter OF
legitimate private business as the FUR
nishlng OF tin pans or saddles and brides
"a. and every consideration which de-
mands that the Government shall Keep
out of the business OF furnishing tin
paEs and saddles and leave IL 20 private
enterprise equally demands that it shall
keep out OF the business OF furnishing
the paper substitutes for money that our
business needs. When the Government
takes part In furnishing these paper sub
stitu,es their quantity is governed by a
hard and fast arbitrary law, which forces
business to accommodate itself 10 them
instead OF accommodating them 10 the
needs of business. When they are gov
erned by private enterprise they respond
20 the demands OF business. and are
abundant when and at the places where
they are needed. and retire when there
Is no more need for them. Tine United
States Government has now afloat some
s3lc0oo.09o OF Its greenback notes and
sons sisoooo.ooo OF It's Sherman notes.
These are nothing but interferences TO
TIA: extent with the legitimate private
business Of the citizens OF the United
States. which cause disaster in all Sorts
q uays one a. thu nrast obvious Al which