New-York tribune., 1895-02-01
HOW TO STOP GOLD OUTFLOW.

SELL BONDS ABROAD AND TURN THE TIDE
To the Editor OF The Tribune.
Sir: Should both houses OF Congress favor It, the
plan of the Presidents message cannot be enacted
into law in less than two weeks. nor maze iuily
operative in less than year. in the event that II
was adopted and proved successful, both OF wh'ch
events are exceedingly doubtful. In the mean while.
with an almost bankrupt Treasury and gold going
on, at the rate Of three or four millions day what
is 10 be done?
Before the incoming OF the present Administra-
tion, there question as TO the value OF our
Government currency, nor or me Government ao''
itv 10 maintain specie payments. For quarter of
q century ours deemed the soundest money IN
the world There were raids on the Treasury
for its gold II was drawn upon, from time 10 t!ine
for the legitimate purposes OF export 10 meet trade
balances agains; But gold was PAID IN reeiy
for duties and the gold returned again quickly to
the Treasury The was cut down by rcduc-
lion of revenue due TO the large additions 10 the
free list by the Mckinley tariff and by liberal pay
rnents on account Of the Government debt during
the Harrison Administration. But this was purpose
" done because the idle reserve was needessiy ex-
cessive /, had long been the Democratic cry, cut
down the surplus" and the Republican Adminstra-
lion gave even the Democrats what they wished for
With this intended reduction. the reserve was stii
ample and more than ample The Mckinley tariff
afforded a revenue sl0,00OO0 In excess OF expendi-
lures Had the conditions then existing not peen
disturbed by the tariff and finance policy OF the
new Administration. the country's growth In popu-
laton would have resulted in cumulative increase
OF revenue amounting to annual additions OF twenty
or more millions. This would have brought ABOUT
q continued increase in our Treasury gold reserve.
The fault lies not then In our monetary system
The causes Of our vanishing gold reserve ana its
incident calamites are threefold-drafts on the
Treasury's god by the banks TO accumulate gold
in anticipation Of another expected bond sale sec
t..,c crlv hna a 3ntlcpntlOn
OF It's going to a premium; third drawing out OF gold
for export. stop gold exports and take away from
the banks both OF these motives for accumulating
gold at ihc Treasurys expense. ana you VIII nave
settled the whole difficulty.
The Administration stop gold outflow, restore
confidence bring prosperity TO the entire country
and set the wheels OF industry. everywhere actively
e., motion II can effect this easily, speedily The
Administration could put the Nation hiy millions IN
debt By "A bond issue when foreigners were buying
our securities gold coming this way, commence
was returning the disposition TO hoard gold had
entirely ceased and the gold reserve. though low,
was Increasing a the rate Of $2CUWO a week, IN
10 produce the very evils II intended 10 cure.
1t certainly Issue one-tenth OF tnat aHount
now to prevent impending panic and Dring pros
periy. wnen the way TO 1t Is sure, open and clear
Let the Secretary OF the Treasury al once. throush
sale mot standing on price, Of s. 10000 OF bonds to
be marketed In London. Tht agents VIII capie ,ne
London house and start the gold this way IN am m
bought by English people as an investment to Keep
n TO Il . viii sye effas h
gold ana he can keep II II he stop further ex-
porte Let him announce that he will make further
SAFES Tor marketing abroad from time to time. "
NEEDED ed and to the extent needed and that he will
prove to be- enough "s snosher issue viii MAKE It
100000 another tb.OoooO There will be no limit.
y.nns ,hs emo al Of fpr9ducng trade equilibrium and pre-
VIII increase our National store by $50oo.ooo an