The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-02-04
NO CAUSE FOR ALARM
VIEWS OF HENRY CLEWS ON THE
APPARENT SCARCITY OF GOLD.
Mostly Held by Banks for Legal Re-
serve-NOthinE Serious Would Fol-
low Suspension of Gold Payments

in discussing the treasury emergency and
the disappearance of gold, says:
The followin statement should be suffl-
cient to base confidence upon, notwithstand-
debt Of the United States government was,
on Jan. /, $1,O64, al Go. as against the debts
OF the following European nations:
Austria-Hungary ......-.........S2 81, S6S, S39, $50
Great Britain. $3.50, liz, 5o3
Germany. Prussia, etc............ 2,5Sl. 422, 1I2
Italy Z,5Z3, SZb,oZJ
Russia !, 49l, 04S,074
The United States government, therefore,,
has not only the smallest debt, but is also
the richest in resources. The debt of Can
ian coionies of New Zealand and South
Wales average $3.50 per capita and Victoria
500 per capita. while the United States
growing out of the failures of 1928 in
this country, which was the worst general
panic period that the United States ever
had, considering it's pr~olongaton and the
fact that it covered every locality without
an exception, amounted to less than l per
the 100000 population. No one Can APP
preciate these facts without having faith
in our country, hope of better times in
the near future and charity for the limited
intellect of many of those who obstruct
the necessary national legislation, which is
the cause of the present troubles.
Come what WI, ana under any circum-
stances. loyal people will continue to be-
lieve that every dollar of such promises
Will eventually be redeemed IN gold. THOSE
who think otherwise can easily relieve Their
minds my making an exchange of their
United States legal tender notes for real
estate or stocks and bonds-in other words,
get out of government promises to pay
into property of some kind or other. A great
many people may doubtless do this, in which
event it will not hurt the confidence OF
others in legal tender money, but 1T viii
surely advance the pr.ce of what COM
petition is getting out of the one into the
other; for that reason the effect may prove
to be imitation of values. The legal tender
notes under any circumstances will not
lose their present money quality.
THE SUPPLY OF GOLD.
The fact that the Bank of England has
just reduced the price of gold I'D per ounce,
being the second reduction within a short
period, goes to show that London is not
anxious to draw gold from this country.
The world will most likely produce between
SITS, 600, 900 and $500, 100000 of god this year.
This country will contribute close on to
$50, coo, 900 and South Africa and Australia
as much more. The last-named countries
are under the control of the English gov
ernment, which makes England equally as
well off In the obtaining of gold from the
fountain head as this. country. The other
important nations OF Europe have all large
supplies of gold at the present time. This
apples to france, Austria, Germany and
Russia. The two latter have their war
chests full of it. OF these nations, there
fore, none can be sufficiently anxious for
our gold to pay a premium for it, as was
done during 1899. For the moment, how
ever. Almost all over the world gold is
the fashion and not silver. Owing to the
increased demandg every conceivable effort
on the part of the human race is being
made to discover and work gold mines and
not silver mines. England is now drawing
her gold from Africa and Australia, is in
Dependent of this country in obtaining her
supply. In the past it was very different,
as England relied upon the United States
to recoup her gold.
1t is claimed by alarmists that if the
government suspend gold payments god will
be boarded and taken out of circulation and
make money t ght. This might be true so lar
as gold was driven out of the country,
but it is to be remembered that gold is
now used principally for reserves and not
for circulation, and the effect of stringency
would only come after the gold reserves
of the banks had been severely drained by
export. Eighty-two millions of gold are held
by the New York banks and probably about
as much more by the banks Of other cities;
this gold will continue to be held as a
reserve as it has been ali along. 1t will
make no difference in that respect If it
goes to a premium. In that position it
will perform the functions of money the
same as heretofore. If the banks did not
PEELED to hold a corresponding amount of
legal tender notes tlistead and take them
out Of .t eire e; u at. hs1 19r hJ Their tbg LEGAL ressrye;
Is held by trust companies and savings
banks. AS such holdings have not been in
circulation they can't be taken out. | VEN
ture to affirm that there is but little gold
coin now in the hands OF the pu-i-c any
where in this country, consequently there
will be but little gold taken out of circula-
ton by a suspension of gold by
the government, SO that a suspension of
gold payments should nave no immediate
effect upon the money market. The do
nestle business situation, therefore, would
not be materially disturbed by a saspen-
sion of god payments by the government.
importers and others who nave foreign re-
lat .ons might suffer some loss and incon-
venience hy their inability to exchange
sreenbacks for gold at the United states
treasury as formerly If gold payments are
subscribed. In any event suspensions of gold
could only last UNI. Congress passed the
necessary legislation to admit of the use
of the governemnt's high credit to obtain
gold abroad.
GOLD CAN BE SECURED ABROAD.
A United States bond bearing 3 per cent.
interest, payable in gold coin, will COM
mand in European markets all the gold
the government needs at any time. This
every intelligent person knows. consequent
ly, under the circumstances, there should be
no serious shock resulting from a sus-
pension of gold payments by the United
States treasury. These views are presented
not because there is any really serious
ground for apprshending a suspension of
gold paymenEfor in my judgment such a
thing Is to the last degree inproba bie-but
fners-~ 80 satisfy the ovar->inl!d that. IL