The herald., 1895-08-22
IGOvERNnENT GOLD AND BONDS

Republican editors are expressing no
little concern as to the depletion of the
government stock of gold. Every time a
shipment OF gold is announced howl
goes up about the danger and likelihood
of the gold reserve being i'm paired. The
fact is lost sight of that shipments of gold
abroad to settle our trade balance is no
new thing. For years it has been Gus
tomary for oar bankers to send out gold
at certain seasons of the year. This has
been in practice for years, and the nation
is no more in danger of going broke"
by gold shipments this year than any
other. Quite the contrary. The outlook
and conditions all point to quick return
of not only the gold that has gone out
during the past few weeks, but of much
more besides.
Foreign capitalists are making heavier
investments in the United States this
summer than for years. Notwlthstand-
ing the fact that the Republican papers
predicted that a Democratic administra-
tion would drive everybody except the
pawnbrokers odt of business, there are a
few still doing good trade at the old
stand. In fact, the number of people who
report good business is on the increase; !;
so is the mum ber who are earning better
wages. It is hard for some to understand
how this can be. yet it is true neverthe-
less.
The New York World, in discussing the
gold shipments and the outlook, says:
"Owing to causes which the World mas
sufficiently explained, gold continues to
leave the country. For reasons which
the World has stated. the outflow is likely
to continue until about the end of the
month. After that the tide is likely to
set the other way.
I'VE have the greatest corn crop ever
grown, and the Iorn crop is c most i'm
portant OF all American products. The
wheat crop also is good with us and pad
in Europe. Cotton will fall below last
years production, but the price is enough
higher to counterpalnnce the shortage
and more.
THE most important factor, however.
is none of these. American securities,
now that confidence in our currency is re-
established. are in active European de-
mand, and this means more in the eX-
change market than any crop shipment
can.
'Thers landed yesterday a European
investor authorized to put $40, 010 900
into an American enterprise. There
are eight other European investors now
in the country, each of whom will invest
ITOiu @-.uUJ,ouO W fO, UOu,UOU All tHlS
money must come from abroad. and its
transfer cannot fail, with favorable crop
balances, to turn the gold tide our way.
"The notion that our government bonds
are being sent back for sale IS set at rest
by Mr.. Pierpont Morgans declaration in
yesterdays World. /. was a trans parent
ly foolish notion at any rate. The Amer
ican per cent bond at I'D is the very
best investment that any European in
vestor who doesn't want to take any risk
can find. Any such investor who wishes
to close out his account can do so on any
European course to better advantage than
he can in New York. There is, therefore,
not the slightest reason to suppose that
our government bonds in any consldera-
BILE quantity are coming back to us.
But the treasury's hoard of gold is
running down. In spite of synd cate de-
posiis il stands now very little above the
$780, 900, 900 mark.
Perhaps this decline is helped by
banks and bankers who see advantage in
oom pellng another issue of bonds. But
experience has shown that the gold re-
serve may fall below 500, 600 600 without
danger. particularly when in the ordi-
nary course of exchange gold should pres
entity come our way by scores OF mil.
llODS'