New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-05-18
THE TRr1SCRY AND THE REMEDY.

More gold IS going abroad. The steamers TINS
wool, have already taken over $3,OO0,0O0. In
February the net outgo was 81 100000, in March
e. 0O0 600. I'm April S94OO000, and in May thus
far about S15,OOOOO0 Hopeful predictions by
Treasury and other so-called experts that the
outgo will soon cease do not seem TO have more
substantial basis than existed two months ago
for similar predictions. Now the movement
might indeed stop soon. and yet stop too late.
one Treasury official INDUCES the hope that
the gold owned by the Treasury will not be
reduced below $SO.OO0OO0 by June 1, whereas
it was lower by S15.OO0.O00 in January. Wall
Street observers are fond of saying that there
can he no trouble because the silvcrpurchasing
net IL no longer in force. 1t had not been IN
forcc for three months when the Admnstra-
tion deemed II necessary TO issue $jO0O0,OOO
of bonds in January Its belief that restoration
Of the gold reserve was absolutely necessary TO
avert disaster was then shared by leading bank
crs. who prevented the loan from fainhe'
though at some risk To themselves.
The outco OF gold has occurred with an cx-
cess Of merchandise exports over imports in the
three months February-April., inclusive, amount
ing 10 about S2GOO0OO0 and in May merchan-
disc exports naturally diminish. The fact IS
in such large amount If there were not prcva-
lent abroad much distrust regarding the future
az business I'm this country This distrust can
only be aggravated by the astonishing display
of inconvenience ana corruption AZ Washington.
While the Senate is engaged in discussing IAN
itemlzcd bill of sale of the votes Of Democratic
Senators" a measure which prOstrates lcgu-
mate industry in order 10 give away many
millions 10 trusts and monOpOeS. II is no Won
der that foreigners think their surplus funds
more safely invested in Europe. though AT low
rates.
Since this distrust continues, and IL the prin-
cinol cause of the large outgo OF gold nj time
whom merchandise exports largely exceed I'M
norris II seems obvious that the removal or this
distr,lst Is the only remedy which can be cx-
pectcd to save the Treasury from further depie-
tion With tariff agitation stopped. with me
ncnding bill postponed until after the elections
Of next fall business would quickly revive
and confidence Of foreign investors would DC
strengthened But If agitation and uncertainty
are prolonged by persistence in attempts to pass
the bill Of sale there seems 10 be- little ground
for hope that foreign Withdrawals Of capital or
dppletion Of the Treasury will he arrested.
When Mr. f. Ellcy Anderson declared on
Wednesday that twenty years Of the vicious
Mckinley law would be preferable 10 the I'M
certainty and instability In business which
come with the delay on the part Of Senator'S
he did not add as he should have done, that
This DELAY Is the inevitable consequence or an
| attcmpt 10 pass a measure which lie knows
| and nine-tenths OF the Democratic Senators
| know ought never to be passed.
The current impression Is that the Treasury
| can be replenshed at any time by another sale
| Of bonds But II is not sensible to put much
| faith in that remedy. The offer Of bonds actual
| " failed in February. As a business PROPOSE
ton II was fatty rejected by the available cap
! ital Of the world, although London was choked-
with unemployed funds and the Ncw-lork
| banks held S246OO0O00 idle In their vaults
Nothing but the earnest personal exeruons OF
n few individuals prevented utter failure or the
! Treasury to obtain the money needed, ana these
exertions were prompted by motives which, III
the present state Of the stock and money mar
J kets and in view of the conduct OF the Senate
| may not be found TO exist If the offer or bonds
| is repeated. The banks have much smaller
! SURPLUS and the season Is near at hand when
their funds will be needed In moving the crops.
| The amazing incompetence and corruption OF
the majority in Congress have left little reason
TO expect that adequate provision for the needs
of the Treasury will be made
The way to help the Treasury and to save
business from disaster Is TO put aside the pend
ing bill for the benefit Of trusts, which nobody
thinks ought to pass, and which not one Sen
ator In ten pow wants TO have passed. Post
pone the whole subject; attend to the long
deferred appropriation bills; authorize an issue
OF low-rate bonds; adjourn, and let industries
and business revive. The people will then say
next November what they want done about the
tariff