The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-01-15
COLD puTIEs.

It Is said that Representative Walker,
Of Massachusetts, will offer an amend
ment to the first currency bill which
reaches the house, providing that one
half Of the customs duties shall be paid
in gold or legal tender notes. The OBJ
ject Of this is to the better enable the
treasury to maintain the gold reserve.
Formerly 1t was required that all GUS
toms duties be paid in gold, but now
they can be paid in any form Of cur
rency except national bank notes. The
result Is that very little gold finds It's
way into the treasury from this source,
and the expediency OF changing this
has been urged by ex-Secretary Bout
well and others as an effective means
Of keeping UP the gold reserve. There
does not appear to be any valid objection
to the proposition. The requirement
that flfty per cent or even larger pro-
portion OF the duties from customs shall
be paid In gold would not be dIscrim-
ination against other forms Of money
that would impair their standing. The
soundness Of all currency rests upon
the gold reserve. and as long as this Is
maintained at the amount deemed to be
safe the credit OF no other form Of cur
rency will suffer. 1t is only when this
basis Of security is seriously reduced
that the standing Of the paper money
OF the government is in danger.
Under present conditions 1t is mani
testify impossible to maintain the re-
serve. even by frequent issues Of bonds.
II Is only little over a month since
the treasury gold was built up by bor-
rowing, and 1t is again reduced to-
about sSOOOOOOO, with the certainty Of
being still further depleted. The ship
ments for foreign account are heavy,
and 1t is reported that foreign bankers
think the outward movement will be
prolonged for some months. The gold
thus called for win be largely II not
wholly, from the treasury, for the banks
show no disposition to part with their
gold for export There Is probably not
less than s7oOoO,oOO in gold held by the
banks OF New York City. and they
seem determined to hang onto 1t, re-
gardless Of the difficulties and embar-
easements Of the treasury, or the men
ace 70 the credit Of the country from Al
declining gold reserve When gold is
demanded for export, these banks sup.
ply the exporters with currency TO be
exchanged at the subtreasury for gold.
and this process. which has been going
on for the past year and half, is
very likely to be continued When GUS
toms duties are to he paid 1t Is also
the practice Of the banks to furnish the
importers with other money than gold
or legal tender notes. This practice
would be stopped If ffty per cent Of the
duties was made payable In gold or
legal tender notes. which in effect are
the same, and the treasury would be
assured an annual income from this
source OF about siooOOO.oOO. 1t might
be advisable to make the proportion OF
duties 70 be paid in gold larger than
Representative Walker proposes, but
even that would unquestionably be a
very great help to the treasury The
proposal te retire and cancel the United
states legal tender notes Is not popu-
lar one and some other plan win have
to be adopted for protecting and main
timing the reserve. That Of requiring
q percentage Of the duties, not less than
one-half. TO be paid In sold Is practi-
cable. ana It IS believed would accom-
pilsh the desired object.
Tie present :::1leations are that un-
lees something Is done BY congress to
protect the reserve 1t win again be
down 70 the danger point within the
asxt Two months and the treasury win
Be- forced 10 Issue moro bonds In that
,reni Il would probably ind some DIFF
icully II 1Iaporlng Of them. The last
,oAda Issued have declined 70 the open
market and are now worth less thanl