The Coconino weekly sun. [volume] (Flagstaff, Ariz.) 1891-1896, 1895-10-03
THE GOLD RESERVE.
Peril0us Condition of tho Treasury Under
Democratic Administration.

Perilous Condition of tho Treasury Under
Democratic Administration.
The withdrawal of four million five
hundred and fifty thousand dollars OF
gold from the sub-treasury in New
York. for export, and it's effect upon
the markets, strongly calls the atten-
tion of the country once more to the
unsatisfactory, not to say perilous,
condition of the nations finances.
The peculiar thing about the gold
movement Is that no one appears able
to give q thoroughly satisfactory ex-
PLANTATION of it The ''par of exchange"
is four hundred and eighty seven.
That is to say, when bills of ex-
change sell at four dollars and eighty
seven cents for an English pound sterl-
ing, gold shipments become possible; it
is as cheap to ship gold as to buy
drafts If the exchange rate goes
higher than this, there is profit in ex-
porting gold.
The first cause Of the heavy move
ment Of the yellow metal is that our
exports are small. Not only is their
volume diminished. but the prices are
low the world over. and the bills of
exchange drawn against our exports
do not meet the demand for funds pay
able In Europe. Second, there has been
an unprecedented number of Ameri-
cans travelling in Europe this year,
and they have expended total OF not
less than one hundred million dollars
The bond syndicate disposed OF large
amount of our bonds abroad, at prices
lower than rule at present, and it is
SAID large number of these have been
sent here to find market, the demand
being good, and the prices high. These
are the factors which are causing the
drain of the yellow metal to Europe.
This movement would be of no inn
portance were it not for the fact that
the treasury of the United States is
the holder of the gold reserve of the
country. The greenbacks and treas
ury notes of 1890 afford an easy way
Of obtaining gold in large amounts. All
that is necessary is to present these
notes at the sub-treasury in New
York, and demand gold for them. We're
it not for them. the banks would have
to rely upon themselves for the gold
needed. and hence its shipment to
Europe would have no effect upon the
treasury, nor affect the stability of our
financial system.
From a business point of view, there
could be no wiser step than for the
government to retire these notes. and
thus get out of the banking business.
To minds of the Coxey calibre, gov
ornamental legal tender notes are the
ideal circulating medium. They are a
loan bearing no interest, and hence
are deemed cheap by peanut states
men. The fact is, the greenbacks have
cost us, as q people, many times their
total volume since they have been in
existence. 1t would have saved many
millions to us had the grecnbacks
been redeemed and retired years ago.
1t would, ut this juncture, be q profit
able thing to do. And it is certain Mat
some step of the kind must be taken,
before our finances are put on u stable
basis
The heavy gold shipments make it
more and more probable that the gov
eminent will have to resort to another
oond issue. Of course the treasury Of
ticials stoutly deny that any such step
is in contemplation, but it is clear that,
if the outflow continues, the reserve
can only he maintained by another
bond issue, which will also serve to
make up for the shortcomings Of the
present unsatisfactory tariff law. The
purpose of such law is to raise rev.
cnue. The Gorman-Wilson measure
mas so far been the creator of de-
liciency instead of 4 revenue-raiscr. 1t
reduces the duties ON the leading
lines of imports to such an extent that,
though our import trade is brisk, the
duties collected fall short of meeting
that portion of governmental expenses
that they should.
Hence the Fifty-fourth congress,
when it assemblies next December, will
have two grave questions confronting
1.-THE maintenance of the public cred
it, which is constantly menaced by the
raids on the treasury gold, and the
amendment Of the tariff law so that it
will produce sufficient revenue to meet
the wants of the government. The
president certainly should recognize
the perilous condition of the national
finances, and, even at the sacrifice of
some of his free trade theories, agree
to some measure of relief, which it
will be the duty of the republican
house to originate. Toledo Blade.
False Throughout.