The times. [volume] (Richmond, Va.) 1890-1903, 1894-05-16
THE LESSON OF THE DRAIN ON OUR
GOLD

The Governments gold reserve has
been steadily depleted until it is now be-
low S9OOOO.OOO AS We have on more
than one occasion explained whenever
gold coin is wanted In any part Of the
world those who want II send here for 1t.
Why? Because there are impediments in
the way Of getting it elsewhere. but
whoever can get United States greenbacks
or Sherman notes can drag 1t out of the
United States Treasury at their pleasure
and with no compensation whatever to
the Government, though the Government
has sold Understanding bonds to secure
the gold and will have TO continue paying
interest on those bonds after the gold is
gone. and will have to sell more interest
bearing bonds 10 secure more gold.
There is a very adequate reason why
the New York exporters of gold draw
1t from the United States Treasury in
stead Of from the New York banks. and it
is one that is creditabe to the sagacity
and business management Of those banks,
although it has subjected them to some
criticism on the score of want of patriot
ism. The banks saw the Government
drained of gold under the operation of the
Sherman law year ago, until 1t looked
as though 1t might be forced to suspend
gold payments. This taught these banks
that they could not rely upon the Govern
ment keeping their legal tender paper
reserve at a parity with gold, and that
circumstances might arise which would
compel the Government to redeem its
notes partially II not wholly in silver.
They determined, therefore, that in justice
both to themselves and TO the immense
trust interests that they represent. they
were bound to preserve their gold so as to
be able to maintain gold payments them
selves, in case this contingency should
arise. They consequently refuse to part
with their gold and they pay out to gold
exporters and all the United States notes
when checks are drawn on them, and the
exporters are therefore compelled 10 go
with these notes 10 the United States
Treasury for that gold which they desire
10 send away.
We say this is creditable TO the bust
ness sagacity OF the banks. and is no re-
Election whatever upon their patriotism.
II the people insist upon sending ignorant
politicians TO Washington to make laws
that derange the money and currency OF
the country. no banker is to be censured
for taking all his measures so that he and
his patrons shall escape as far as posi-
bic the evils and misfortunes which these
pestiferous enactments bring on the coun-
try.
But how can the bliniest and most ig-
norant Populst or Greenbacker fail to see
in this regular depletion of the Govern
ment's gold the vicious foundation upon
which our whole currency system is
built? Why can they not see that the
Government has no business TO have any
gold except what is paid IL as taxes, 10
be paid right out again by II TO its army
and navy. for interest upon its debt and
for public improvements?
From the foundation of our Government
up to 1861 the Government knew nothing
whatever OF the money of the country
except TO fashion the precious metals
that were brought 10 It into coin, and
stamp on each the number Of grains II
contained in order that whoever took one
might know certainly the quantity OF the
precious metal that he was receiving
The furnishing of paper substitutes for
money was left TO the enterprise OF prj-
vate business. where 1t belongs. and. as
result prosperity was spread broad
cast over the whole face of the country.
Now we have the Government in the false
position OF issuing and regulating the
paper substitutes for money, and all the
money congregates at the money centres,