The times. [volume] (Richmond, Va.) 1890-1903, 1895-05-22
COINS FINANCIAL sC"oOt'-NfNf II
AKTICLF-THE EHtAk-DoNN Oh
OUR CREDIT.

OUR CREDIT.
Whoever was I'm London or Paris in the
winter of 1892 '93 and had any dealings
with the moneyod men there knows that
at that time American credit had come 10
be Looked on with suspicion. Finanoiers
had come 20 be very doubtful whether
we could go on with the increase in our
silver money without being driven from
a gold to silver basis. a wcA-hno~n
Richmond banker was in Paris during
that winter and he asked the great bank
ing house Of Lazzard frcres 10 cash
draft on a Richmond bank for $1,000. The
house told him il would of course do
so. but Il required him TO make it payable
IN gold This led 10 conversation be-
tween him and the head OF the house in
which Mr.. Lazzard told him that the
United States could not go on i'm her then
course That she must stop purchasing
silver bullion or she would be bound
TO go to protest and pay her liabilities
I'm the deprecated silver dollars Instead
of gold dollars. This incident sufficiently
shows the views Of the capitalists Of Eu'
rope In regard 10 our condition at that
time.
Very soon, the most prudent Of them
began to Withdraw from America any
money they had here before a risk should
arise OF their being compelled TO receive
silver dollars. Soon afterwards the timid-
itv spread from The most prudent TO the
less prudent, and soon thereafter TO those
stiI less prudent. and. in short time,
everybody who bad money invested in
America or in American securities wanted
Il so that no risk would be run of It's being
paid i'm deprecated silver dollars. This
brought a Hood of our securities to this
country, every steamer carried away mil
lions of dollars of our gold, tho alarm was
communicated 10 rich Americans. who be-
gan TO hoard and store away gold, and
by June 1888. We were in the fun tide
Of the most disastrous panic that ever
befel a people.
When we resumed specie payments in
1879 We accumulated a fund OF SimOJ0,"0
fin gold in the United States Treasury
TO meet any demands that might be made
upon us. We then had out $3iG GSl.0is Of
the war treasury notes. what We call
"groenbacks," which the law requires
shall not be diminished-that is. they are
required to be paid out again whenever
they come into the Treasury and we is-
sued. as before stated. Sl55.93l0o2 addition
al notes under the silver purchasing act
Of 1880. These notes were payable as
demanded and though the Government
had the right 10y the terms Of the act un-
der which they we're issued to pay them
in either gold or silver. still. as the same
act declared 1t to be the policy of the
Government 10 keep the two metals al
parity. Mr.. Harrison's administration de-
tcrmined. when the first demand FOR gold
for them was made that it would be
discrimination against silver if IL refused
10 give gold for them. and the policy
Of giving gold I'm exchange for them was
therefore established This was a wise
act on Ar. Harrisons part. and the policy
was wisely adhered TO by Mr.. Cleveland
This made sum Of SO2@o.olS of notes
that the Government was under an
Obligation TO eive gold for
As soon as distrust OF the Government
set IN. both classes OF these notes com.
mcnccd TO come to the Treasury FOR gold
and they steadily dragged IL out al to be
sent abroad that did not 80 into Amori.
can boards. The following table con-
iaIns a most instructive lesson. IL shows
the amount OF sold that was drawn from
TIE Treasury each year from the time
we resumed specie payments in 1879 to
the end OF January. 1891 al which time
Mr.. Cleveland made the contract with
the Morgdn-Rothschild syndicate and re-.
stored order 10 our finances:
Fiscal Gold Fiscal Cold
year Withdrawn. year Withdrawn.
ending