The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1894-02-22

The Valley Virginian.
WHY GOLD GOES ABROAD.
It Is Simply an Article of Trade,
Like Wheat or Cotton.

The expectation and importation of
gold is controlled by the same laws as
the expectation and importation of any
other commodity in addition to the nat
ural laws which control its influx and.
retiux as money. AS money the office of
gold is to pay the balances of trade be-
tween countries, but apart from the
balance of trade influencing the flow of
the metal from one nation to another,
there is at work the law to which it is
subject as a mere commodity.
Ii another country desires to purchase
anything from the United States either
for immediate use or for purposes of
profit, the things taken will generally
be that which can be purchased cheap
est. There is evidence to show that the
recent expectation of gold from this
country was caused not altogether by
distrust or by the balance Of trade
against the United States. but also by
the fact that other commodities-pork
and grain, and produce and merchandise
generally-had been held at such high
prices that there was no profit in their
purchase to foreign dealers.
OF all the things the people of the
United States had for sale, they were
willing to sell gold the cheapest, and
naturally the traders of the world rushed
to get it. If wheat could be obtained for
fifty cents in gold bushel in India,
when it could not be obtained for less
than a dollar in the United States, it was
better to take the gold dollar from the
United States than the bushel of wheat.
The traders of this country thought the
gold dollar too cheap thing to buy
more than a bushel Of wheat In the
case of wheat, therefore it is easy to see
that unless the United States has a
monopoly of supplying other parts Of
the world, it is foolish to undertake to
fix the price by trade manipulations
or by any artificial means.
In the case of silver, also, the United
States cheapened gold by paying more
of the latter for each ounce of silver than
was warranted by the opinion of the
traders of world. This cheapening of gold
made it flow from the country as rapidly
as it could be obtained in exchange for
imported products and merchandise, or
in the payment of Indebtedness.
From this may be easily deduced the
great effect the repeal of the silver pur-
chase law, the great instrument by
which gold has been cheapened. The
repeal of this law in reality gives notice
to the world that gold will no longer be
held cheap, but that it will soon buy as
in other countries. Generally speaking.
this country is one of the best and most
convenient markets, both for selling and
purchasing that foreign nations have.
In other words, the great resources of
the United States, the intelligence and
enterprise and energetic industry of it's
citizens, makes it very desirable country
to trade with. This act is advantageous
not only to foreign traders, but to our
own. There is under ordinary circum-
stances profit in both directions. But
notwithstanding the advantages pos
sesscd by the United States as trading
country. the price of any commodity
cannot be forced beyond what the sup
ply and demand of the world and the
opinion of traders as whole, founded
on their knowledge therefore, will toler-
ate.
Trusts, concerns and combines"
while they are injurious in domestic
trade, are much more damaging to the
foreign trade because in raising unduly
the price of any commodity over-produc-
ton ensues, and other commodities Of
equal Importance are apt to be unduly
cheapened, and while we try to make
foreigners pay high price for one thing
they are liable to drain the country of
other products at price that is ruinous
to it.