New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-11-21
SrCPrTaRY C4RLISLE'S ERRORS.

The financial fooshness which has brought
distrrlst and discredit upon the richest Nation
On earth is not Illustrated more plainly by Secre-
tary Carlsles speech than by those VINO APP
plaud It. Let us see if they cannot be heped
to understand his and their mistake. II the
Treasury has Il surplus revenue, 1t must receive
more money Of some sort than II pays out. In
that case. not q dollar IN gold can be drawn
from the Treasury except by taking note from
circulation and the notes so surrendered the
Treasury has power to accumulate in It's vaults
until no more gold is drawn. But if the Treas
Try has deficit Il must pay ont either Of gold
or of notes more than II takes in. and If it pays
notes those may be at once exchanged Tor soid'
SO that its entire deficit goes ont OF the soid re-
serve. When Secretary Carlisle stated That the
Government had to borrow lG2,OOO.OOO Ill order
to maintain lis gold reserve, he did not state the
fact that the borrowing was made necessary
bv great deficiency Of revenue when look out
Of the Treasury gold or notes and deprived II OF
power to maintain its reserve
When the Nation buys from abroad more IMAM
II sells. gold will go ont in settlement ABOUT
$50. 600 600 has gone this year. because the value
Of merchandise exported has been about S3l.Ooo,-
600 less than the nominal and over SsOOOoooo
less than the actual value of imports But II the
inno,ts had been restricted by a wise and patrl-
otto tariff as they were for many years, theTe
would be in the long run gold 10 come III ana not
gold TO 90 out for payment of balances In the
fourteen years ending with the election OF CleVe-
land in 1892 over S100,0O0,0OO more gold came
in than went abroad, even including all the mill
ions sent 10 redeem bonds held abroad. In the
last three wears besides all the gold brought
bither Inv issuing the S1G2 600 Of bonds part
| " taken abroad over $145 900 gold has gone
| ont Of the country When that state OF things
exists the Treasury reserves are drawn down,
inst rs they are naturally Increased when gold
is coming into the country.
Thus the same law which restricts imports by
odeouate duties, and yields an adequate revenue
to the Treasury. operates to stop both the outgo
Of gold from the Treasury and the Outgo of gold
from the country That intelligent National pol
lev was broken by the election OF ls32. Eoid
which had been coming IN during the month OF
October went out in November after the cleo
ton. The Treasury gold reserve, which was
S124. 400 6J7 November l, just before Cleveland
election. has run down below 500, 900 in spite
of the borrowing Of $lG2 100000. and Is running
down each week Those who are Incapable OF
understanding such facts as these naturally ap-
Maud Secretary Carlisle for saying that the
source Of peril is the circulation OF notes when
may be ressued. For fourteen years such notes
circulated, and gold did not go out but came in
largely in spite Of the payment Of S1,2O9, 'OOoOO
bonded debt much Of it originally held abroad.
In three years under different policy the same
notes are alleged to have increased the debt
and taken out the gold. The assertion may do
for politicians who have been phenomenal fail
ures in finance 1t ought to be too absurd for
practical business men.
For the sake Of clearness, the influence OF pos
sibly overrapid debt-paying during the fourteen
wears. Of the mschiev0us reduction OF duties
on imports in 1888, and Of the large increase in
issues Of notes under the Sherman act, has Deen
omitted If the debt payment had been little
more gradual If the reduction Of duties in 1883
had been smaller and less hurtful, the Treasury
and the country would have been in stronger
postion TO meet any strain. The issue of silver
notes was forced upon the country as the only
means Of avoiding free coinage Of silver, de-
manded by Secretary Carlisle's party and sup
ported by Secretary Carlisle himself. But in
splte Of any and all mistakes or difficulties, the
National policy Of Protection kept the Treasury
fortified with an adequate revenue and reserve
down 10 the hour Of President Cleveand's cleo
ton. The contrast has been so glarng that most
Of the voters see it, whether Mr. Carlisle does
or not.