New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-07-30
TIE DANGER ND Its CAUSE.

At the rate Of nearly 81 100000 daily gold Is
going abroad. The life blood of the Nations
circulation and of all commerce and business
is oozng ont. 1t is not strange that the imam
cial world hcsiatcs While Congress wastes
all its time in an effort 10 pass bill when
would only exhaust the Treasury. the little OPP
portunty left for saving the Treasury from
disaster is rapidly passing These are not the
words of an aarmist The most sasaciouS
bankers know that they are only too true.
There is n point. which may be reached sooner
than politicians suppose, at which II Will be
impracticabe for the present Administration 10
borrow gold with any bonds ii has power
,o offer The last sale OF bonds would have COM
plctclv failed. bur for II few bank presidents.
who are very far from disposed To repeat their
natrotc experiment. Confidence in the finan-
col conduct of the Government has greatly
diminished since that time. The revenue bill
which is expected to pass does not appear TO
substantial men safe provision for the ne
cessiiics OF the Treasury
Washington takes n different view of II, or
course Calculating on imports as large as in
1893 with altered duties, and on full con
sumption Of sugar and whiskey and ready
collection of ar. offensive income tax. Washing
men know that the country IS no longer IN con-
dtiOn 10 buy foreign goods at the rate OF lN'''
or 10 consume as much sugar or whskcy as III
that year. This single fact. against which WASH
incton obstinatcly shuts It's eyes, may cut ell
as much as quarter Of the expected revenue
1t IS childish TO reckon on increased purchases,
Of foreign goods because of their chcapn"ss'
when the condition Of the people is such that
I. 1,isn hpi
Moreover. II is folly to suppose that as much
sugar Will I've consumed al Gi2 cents per pound
~ has been consumed AT cents or as
much whiskcy at 81 80 aS was consumed al
81 10 per gallon. But there Is further fact
that large part Of the expected revenue from
sugar and whiskcy will be abstractcd on lis
way 70 the Treasury by two crca, trusts.
With all these facts In mind. practical men
see that the revenue may easily fall more than
4 quarter below Congressional expectations
and hat will mean large deficit for the com
ing fiscal year. No calculation based on the
income tax is worth anything. because payment
will doubtless be resisted in the courts, AT least
for n wear or more Thus it Is more than prob
able that. if the pending bill passes, the Treas
ury may be unable 10 meet its obligations the
very frs, year. Since practical business men
crumcnt will be able to pay gold on demand
even If il tries The bonds authorized by Law,
the only Kind the Treasury has power 10 issue
promise payment in 'coin" but not IN gold. and
If the GOLD reserves should be exhausted by de
mands for redemption u notes or by exports
such bonds would become payable, principal
and Interest In silver only
1t is in the presence OF such difficulties INT
Congress persists in "A dangerous tariff aGtatlon
while foreigners Withdraw their gold from this
country When Europe takes gold coin instead
Of wheat at 54i4 cents, or cotton at
cents there Is no room 10 doubt as 10 me
motive Those who look az the stock market
for evidence Of foreign Withdrawals forget that
many hundred millions are loaned or invested
IN This country in other ways, in manufacturing
concerns land and cattle concerns. and partlcn
lorly in mortgages on Western and other real
estate They forget that legislation against
creditors by POpulst lawmakers In many States
has caused foreclosures on loans amounting 10
many hundred millions. and that the money
Tins collected or paid by debtors to avoid fore
closure must amount in the aggregate 10 several
times the gold reserve in the Treasury. II
foreign creditors are led by foolishness In Con
Crcss and in the Treasury department 10 win
draw what funds they from this country, II
Is unhappily obvious that the Treasury reserve
will not last long.