New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-09-16
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GOLD AND THE TARIFF.


GOLD AND THE TARIFF
The last week has brought important informa-
ton regarding the relations between the Govern
ment and the syndicate, and regarding Inc ou'go
Of gold and is causes. 1t l. now omciaily ne
clared. AZ The Tribune stated some months ago
though 1t was then and for some time sIouty de
MED that all obligations Of the syndicate 10 pro
vide gold for the Treasury ceased with It's pay
ments for bonds, that 1t has been and Is WILING
10 furnish gold TO the Treasury when il can. but
not at all as matter Of obligation. and that there
never has been any contract between members
Of the syndicate restricting them from exports OF
gold One Of the leading firms, explaining It's
large shipments, stated that ii had provided
exchange 10 a heavy amount against expectations
of commercial bills which had not been realized.
SO that IL was obliged 10 make remittanccs of gold
10 meet foreign obligations. Mr.. Morgan also
distinctly states that the syndicate has been dis
appointed in offerings Of commercial DIS, the
deficiency Of produce exports making some outgo
of gold unavoidable. These are precisely the ex
plantations which The Tribune has been constant
" giving and its columns show that adverse
balances In August and September were dis
tinctly anticipated as consequence OF the nse
in prices If cotton and wheat. the comparative
shortness Of those crops and the large supplies
Of cotton held abroad. These anticipations have
proved more correct than those Of the syndicate
1t is less easy TO Judge of the future now. be-
cause prices have yielded TO some extent. while
the season is at hand when larger exports OF
grain and in ordinary years Of cotton, are ex-
pected But the fact remains that cotton Is held
so high as materially to hinder full exports while
Europe holds heavy stocks. 1t also remains true
that Western receipts Of wheat, though for the
last two weeks nearly up to last years. are still
SO small as to indicate d somewhat general dis
position to hold for higher prices, and the price Is
still much above that Of wheat from Pacific States
or from some other countries while foreign mar
kets may be expected soon TO draw large supplies
from South America and Russia. While some In
crease in exports may be hoped for, 1t Is not at
all certain as yet that 1t will exceed demands for
goods and securities imported. Further the de-
cline in stocks though hnderlng shipments Of Sc
curties merely for realization Of profits. may on
the other hand stimulate sales Of stocks bought
for speculation, on which further decline might
result in loss.
While much is in doubt, one thing is clear that
the chief cause OF difficulty remains unchanged in
force. namely the encouragement Of larger i'm
changes of the tariff Two weeks of September
continue to show large increase in imports. and
in August the increase at New York was heavy
while in July at all ports 1t was over SSOoOO00
and In seven months ending with July over S6I-
100000. II the condition of the country were so
prosperous that corresponding exports could be
expected. the situation would be different. Few
Industries have yet recovered their normal ac-
tivlty. and many prices have risen so far as TO
check the outward movement OF exportabe prod
ucts. The nominal value OF imports by no means
represents their actual value. How large the I'M
liberalization now Is no one can say, but in goods
on which ad valorem have been substituted for
specific duties. the excess OF real over involced
values must add every month several millions 10
the sum which has to be paid abroad
This is d policy which has been tried before
and always with resulting misfortune. 1t seems
almost incomprehensbe that men OF practical
business sense are still found wondering why
there is an outgo Of gold, while they are UNFOLDING
a tariff expressly intended TO bring about larger
purchases Of foreign goods which Americans are
able and have been accustomed TO produce at
home The relation Of cause and effect Is so direct
and obvious. and has been tested in past his
tory often with the same results, that he who
refuses to see 1t has no right TO wonder If the
business calculations he makes result in disap
pointment The worst Of it is that, with Congress
divided a. It is and President Cleveland still in
office full remedy may not be possible next
winter
There is ground for belief that the syndicate
will help The Treasury as far as 1t can without
too great sacrifice. and It's influence with bank
ing institutions Is great. But Il has 10 deal with
conditions which ii may be unable 10 con
troll. If, as some observers think IL has sought
lower range Of prices for stocks as essential that
in its turn may make difference with the de
mand for products Of many Industries. There Is
still the prospect that another sale Of bonds may
become necessary. and the reports that the Adj
minlsration has definitely decided upon such an
issue are somewhat distinct, but II rests with the
Administration to determine whether If a sale Of
bonds be found necessary at ALL 1t shall be on
terms as expensive and humiliating 10 the United
States that Of last February.