Capital journal. (Salem, Or.) 1893-1895, 1895-05-10
A PITFUL SITUATION
(Dregonian on Failure Of Gold
Standard.
HIS REMEDY Is MORE PIIIFTL.
Demands Contraction OF Money
Sdll Further.
HIS REMEDY IS MORE PITITL.

bgyiDg syndieate is paying pfemi1m
Tor gold 81 the sueltsrs, and 70 cutting
ofi The sopply 10 the United States
miDu. The oregonisn pointed cot
this probability some time ago, when
the failure Of supply TO the DiBts nrs,
sscanne apparent. Il is tbs mOet nat
Iral thing Ia the world The syndi-
ate has . contract 10 deliver some
ySz.Oo0 100 10 gold 70 the United Slater
treasury BY october. This contrAet
carries q profit for the syndicate Oi
sorDs O.O0O. 900. II can well afford 10
Jay premium Of more than or 2
Der cent " divert gold on the way to
.be treasury through the mlnts and
surn II 70 lie own credit. or eO0rs',
be gold reaches the treasury fnAlly,
ygt IL goss TO the credit Of the syndi-
ate. This earns its 100000 BY
paying into the treasury gold which
Il no real gain. because II would have
gone there any way, II 1t had not been
diverted.
II rs said that the syndicate is max
ing q corner on gold. This Is not ex-
aetly the case. The corner ls already
made by the incredible folly Of the
government 10 Issuing credit currency
beyond its power 10 redeem, and be
yond power Of business to absorb. This
drove gold out of circulation, except on
this coast. Ali the gold Of the east ls
locked up In banks, except the treas
ury reserve. which the banks can
draw out In less than a week by pre-
ssntlng the legal tender piled up in
their vaults, Practically. the banks
of the country have control Of Gll the
gold Ia II now, and nobody needs to
organize q eornsr
The syndicate is fuIilling its profit
able contract ~ cheapIy As possible
that ls ALI II has agreed 10 prevent
the export Of gold aud the drain upon
the treasury reserve till October This
Il has done by manipulating exchange
and lockiHg sp currency. This costs
II some money, like the premium on
gold from the smeller. But for the
contract tls syndicate could have
drawn gold out u the treasury In the
morning and deposited IL IN the sflef.
noon, ~ ihs New York bankers did
whsn they bought bonds. But ell
thsss sETsnsss ars tnninR, compared
with tbs enormous profits u the deal.
AZ the Osgonian bas pointed out
over And over AgAin, the relief of lbis
bond sails ls only temporary. Ths 0bli'
gaii0s ~ ibs syndicate 20 pfotsol the
treasury will empire Ia October, with
Abe lat payment ~ gold 90 the bonds.
Then ihs legal tenders u hAs besn lock'
leg 40 vlii bs released aud bsoon's
svsiIsi,is agsln "a draw gold zoe VI lis
sfssssFy. whsu the syndieals sioIs
toying sold, and paying . premium,
shan Bsoasaafy, ~ Esi ~, ihs export
asla pfoosbly wili bsEin SCALA.
Essfy a0alaS thsl is n.sdsa foF sspoli
sili ts drsvn 0ul " Ihs treasury, and
ilis bsahs probably will laks the 90
p~fisnliy, - tbsy did bsf'ss, ~ aTsv
500 dells1s fsf sYsgy ess nssasd hlf
sstsii - isnfsass ibs sioss in thslf
vaults. ~ snilaipsilss ~ sssSension "
aold rsy@sBis SAD . pgsn'isn spoB
lhsi a,sisi "a 70 nss ~ sil lsnpsoi,sbls
lisi ils Is.sfys sill h. - isg ssbsusisd
lssl snotksf hand ssls wlil "a nsoss
say l'sisss ihs DssilDs " eanHis@
Tissi h ~ sss, sflsf ssiiisg sac l'ogds
sgssiss 80 scot isisgasi, ihs byys's
u ihsll sssisus u 80 isssl lsaasfs GO
sblsh iisg fss1la lhsm slll IeeogsF
ii,s 500 Isis es as leeds. issglus
li,s lgssssiy jssi wbsls q wss isf,ss,
ssssa siib . bod " $50, ,sg 90
Tssl sslis ieisfssi a n ihs eia
i'snaskis as,ns,H egig sta = as
lseaihs lniffFsl isivan dgleAs
Ihsgs y ~ ssssia fis9 n, ssa u aisy
o. es iagssss, svis~ ws fsesll lls sgf
pl'is u lsssl issasis ~ alssns ~ > hlail