The times. [volume] (Richmond, Va.) 1890-1903, 1894-06-10
BUILD THE CANAL, BUT not AT THAT
tD.T

We most earnestly hope 10 see the
United States Government at the back.
in a proper way, OF the project 10 build
the Nicaragua canal. 1t cannot be built
otherwise to so great advantage as 1t
Will be If built with the United States
Government behind It, But we hope we
will never see it built by the proceedings
which our Washington correspondent
writes us that Congressman Wise informed
him had been suggested. This is that
the United States Government, Instead Of
endorsing the company's bonds, or issu-
ing its own bonds, shall issue ten millions
of dollars OF Tres sury notes annually
for six years. this being the time and
amount necessary to con plCte the canal.
We are badly enc ugh off new, with
500 100000 United States Tressury notes
to take care Of, with gold reserve re
duced below S7O.oOO,O0O We should proba-
bly, force the Government TO an immediate
suspension of gold payments If we an
nounced to the world that we proposed
10 make this addition TO our demand gold
obligations.
Prior 10 the rassage of the Sherman
act or in 1890 we had out 3i5. 100000 of
greenbacks. This was rs bad financiering
as possible, because the Government had
no business TO have out any notes. But
we got along with these satisfactorily,
because we had a reserve gold fund
against them Of 100000, and no dis
trust was created. But, commencing in
the summer OF 1890. under the Sherman
law, we went on adding to our demand
notes payable in gold. until we had is
sued about $l5ee00,e00 more. The world
argued that a foundation OF 10000 900
of gold was not sufficient to support this
immense superstructure Of inflated paper;
1t began to Withdraw its confidence, and
we had the financial panic that has pros
trated all business We have done moth
ing whatever TO regain the confidence OF
the world that we lost. except to quit
behaving badly. and we came very near
being guilty OF some actual bad conduct
when We passed the "seignlorage bill"
Nothing but the Presidents veto stood
between us and a false step that would
have plunged us into another pitfau.
the conditions all remain most unfavor-
for the restoration Of that confidence
which Is so necessary 10 prosperity. Tx
ports OF gold continue. Notwithstanding
our great favorable balance of trade,
which shows that terrified Europeans
are stu selling American securities. and
timid Americans are putting their means
abroad where they will run no risk of
| having TO take fifty cents for dollar
| Apprehensiye in the general unsteadiness
of things that the Government may be
forced 10 suspend gold payments, the
banks fortify themselves for the posi-
bic event by paying out every other kind
OF money, and putting all gold that comes
10 them In their vaults as their reserve.
thus throwing all demand for gold for
| expectation on the United States Treas
ury; and the Treasury's future supply OF
| gold is most precarious. 1t is curious 10
note the amount of the Governments
| revenues that was collected in gold al
| the time the Sherman law was passed
| and compare It with what Is so collected
now. We append table showing the
| percentage Of media in which the New
| York customs payments have been made
for the month OF May for six years, as
| follows