The times. [volume] (Richmond, Va.) 1890-1903, 1894-12-04
That Currency Question.

Editor Times Permit me to thank you
for the editorial in Tuesdays issua. and
a so TO express my appreciation Of the
fact that In your financial discussions
you appear always to have the purpose
OF presenting the truth, and the whole
truth, TO your readers.
This practice Of yours leads me, how
ever. 20 submit some suggestions that
occur 10 me In connection with your ar
ticle In Wednesdays paper. After an
examination Of your figures, you con-
Clude that the withdrawal Of gold from
the Federal Treasury in recent years
has been for export. because the people
Of other countries became alarmed lest
our currency should depreciate, Ii is on
this point | wish TO offer suggestion
or two.
our Federal Treasury was never in a
better condition than in ls6S, 1859 and lSo.
And yet your table shows larger eN
portatOns Of gold in 1889 ana 1880 SO
the drain OF gold had begun prior 10 the
passage Of the Sherman act and while
the Tee ury was plethorlc with gold.
Further, after the repeal of the Sher-
man act, the drain continued with
greater force than ever. our net eXpor
tations of gold since January, 1894, being
more than during the calendar year,
lSS3,or the calendar years 1882 and 1871.
And so the drain Of gold would seem
to be due 10 some other cause than the
operation Of that act.
Have there been other causes one
rative? 1t would seem that there has
been an unusual demand for gold IN
Europe Since 1855 Austria has required
a large quantity of gold, having intro
duced gold currency, and Russia has
been amdSsing a sum for her war chest,
stated at six hundred millions. Besides
the great banks Of Europe mot iuclud-
ing the Bank of Russia, have IN the
last few years been Incrt asnS their err
culdtion-and have added TO their gold
fund about three hundred millions Of
dollars, while they stu have over five
4 of h.4fV ON
culation uncovered. Including the issues
OF the Bank Of Russia, the uncovered
bank issues Of Europe amount TO more
than a billion dollars. Inc banks nave
apparently been making strenuous et-
forts TO cover these issues. here then
We have two plain causes Tor a sharp
European demand for gold, entirely uh-
connected with the condition OF our cur
rency.
Besides. what interest has any, for
eigner i'm the apprehenslOns Whlcn an
American might well feel IN regard 10
our currency? No foreign er OWLS any ol
IL abroad. a casual reader mlSEt SUD
pose you TO mean that some lGrelsHteIs
have been sending home Tor teieulp'Lso S,
some OF our Treasury notes, WhlcH 'Ioy
held abroad, because they feared our
currency would become lesS nj, I1'H"''''
our railroads have OUTSTANDING dpoue
five billions OF bonds OF Wnlch; cay IL IL
billion, were cid abroad. b3hdS, ~ g.,
and other securities nav -,
recent years been returned 10 US, 10 10
has it been because OF our Cu .ir' - 4
our securities are Seneraiiy seApi -
to be payable in gold, ana Tear Vi :"
depreciated currency would not NC OPei"
tive as TO those. .o..1 bov,-
Consul Mason has recently StatSu' ny ~,
ever, that the German EoiutI9 ,be1r
railroad securities have ca "a r.
because they have become aiaIHlSu d. -
rnismanagement OF our rallruads, lleli
passing into the hands OF receNtlS' Or H.
The very men who had mismanaSeI the
nronerties being appointed the receivers
and continued in charge By the courts.
Here then. are two probable reasons
for the return of our securities eH tti =
unconnected with our currency H.
the abnormal demand for goa III ~ ~
rope; and, secondly, apprehension, 40 ~ =
the value of our railway secui - - 7
you will investigate these HatteI ~,
think you will likely conclude tiat ~
have had more TO do with the dram l.,. Va
gold from this country than any dppaiTr
hension which foreigners may eiteI az,
in regard TO the stability or cur cuIItu tsg
and especially so when you reneinnri
that the drain began when cur 1FeaSuI
was full of gold before the passasG u
the Sherman act, and has continued sH'Oo
that act was repealed. II
And further. the expectation OF SOU
from 1889 TO 1891 was not made AT the
expenset of the Treasury. The gold was
drawn from the New York banks as long
az those institutions had any To spare;
When their stock was run down In 49,
then the presentation or Treasury NOTES
for redemption became active. The effect
on the Treasury has been unfortunate