Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1895-08-15
r,c Cold n..crye-E.trn session.

We were not surprised 10 itdi" '''
as stated in our Washington tolegrams
Yesterday. the financial condition OF Inc
government had caused much speculation
In Washington. \ month ago we called
attention to the subject. and said. as
We have said repeatedly since. that the
government could not, without bank
ruptiug Itself. 20 on forever selling
bonds to raise money 10 pay the ordinary
expenses Of ,he government. we ar
cued that a lime of reckoning must
come. and that it's disastrous results
coulG not be forecast There was no
thing new 10 be said on the subject
however. All the features Of the Imam
ciaI situation had been fully presented
70 the people FOR their consideration ana
they had. many of them. concluded mat
as wise a policy as any other would be
10 let matters drift. and leave 1t to the
fu,ure 70 determine what the govern
racnt should do with reference TO the
matte Of preserving the nations gold
reserve.
But we shall be asked what has
brought this condition Of ;he Federal
finances: and we let the New York Jour
nal OF Commerce answer for IL. That
paper says that the stubborn. deadly
factor in respect TO the gold reserve Is
that. first. as affairs now stand. there
IS a certain yearly export of gold which
the United States Treasury alone j. re-
aulred to supply The Journal does not
tell us why this export should DE re-
CURED az the hands Of the government.
But II goes on TO say 'seaendly. that no
matter what amount Of gold may come
I'm from abroad. or from our mines. absO-
luiely none OF it Is allowed 10 reach the
Treasury. This explanation explains no
thing. 1t furnishes no reason why speech
lators I'm gold or other persons should
bee able thus to hoard gold on their own
account. and threaten the bankruptcy Of
the government. Here IS something in
tended TO explain that matter. We quote
the Journal:
The metropolitan and se3board banks
nave. tor nearly three years, refusa "a To-
supply any gold for export. and the gold
exporters have. therefore been compelled
t. exchange legal tenders Tor gold at
the Treasury, and. with stu more de-
ranging effect. the banks have refused
to give gold to importers for the pay
ment Of customs Guties. The action Of
the banks thus necessitatcs an average
drain OF SJ.CDpU year on the Trea-
sury. and totally shuts of the govern
meut from It's only possible source of gold
income. II Is this attitude OF the banks
towards the Treasury that alone has I'M
meliately caused the depletion Of the
gold reserve ana necessitatel the repeat
ed borrowings Of the government TO en-
able II 10 maintain gold payments.
Whence must come relief? Tho Jour
nal gives its remedy, ami We quote it.
as follows.
The only conceivable means Of real
and permanent remedy lies with the
banks No financial miracle within the
ability If tn most potent syndicates
could accomplish the complete restoIa-
ton that would instantly follow the banks
returning 10 the payment Of customs du-
ties III gold. Unless the government il
10 continue 10 borrow nifty 10 one hun
drrd millions ~ gold a year. there IS no
othtT means under the sun for saving
the Treasury except that Of the banks
ceasing 10 divert from the Treasury it,
wonted gold income. The sooner the
banks act upon this imperative neces-
sity IN their clearinghouse capacity. tie
sooner the financial horizon VIII b.
cleared Of The clouds that again begin
TO appear upon II. without their ac-
ton II is absolutely inevitable that there
must be renewal OF borrowing within
few months after the Close - the syn-
dicdte's functions; and what that means
practical hnarciers at least do rot need
to be told"
But. if the banks do not choose
thus to use their money. what T. TO be-
done? The Journal declares that with
all its hsip the syndicate has left the
main ting Wdone That paper adds:
There are those who imagine that
now that the syndicate has done so much
20 restore confidence and 10 repair the
machinery Of business. AFFAIRS may be
.afely let TO run thems elves This is "A
very narr0w-slghtei mistake. With all
its help. the syndicate has left Tho main
thing undOne The real difficulty to BE-
remedieI lies I'm the inability 81 the
Treasury - get and 20 keep enough gold
90 maintain its reserve and preserve
| gold pavment There alone centres The
| disease. The syndicate has loaned the
| government enough gold 20 satisfy its
wants for "a few months: lut IL has Gor'
rothing towards either stopping the fu-
/ ure export drain OF bringing back TO
/ The government rs wonie1 gold Income
/ through the banks in payment for Gus
/ toms duties II follows. therefore. that
| M TIE recovery Of confidence ana Of
| business il ba sd upon a transient ope.
| ration which. when Withdrawn. will leave
us where We were before last February;
unless the banks. the only possible source
| Of lasting remedy. come 10 the rescue
| boy resuming gold payments to the gov
! eminent"
And here we are left Just where the
| Journal Of Commerce found MS. for It Is
certain that the banks are going 10 con-
cult their own interests ~ this matter.
/ "A extra session Of Congress would put
! the Republicans upon their mettle and
give them an opportunity to air their
financial theories and legislate along Re-
! publican lines. The Democrats might
oppose an extra session on principle. but
they couil not be held responsible for
the legislation OF such a Congress as the
next will be. "a
The Philadelphia Press poses as the de-
| fender OF the new woman. but we much
| fear il Is wasting its gallantry. AS We