Capital journal. (Salem, Or.) 1893-1895, 1895-06-28
A CRISIS AHEAD.
lpsrtIand ore.onIan. June II


completed that part OF lie contract With (
the government, whicii Obliged q 10 /
furnish the treasury with $500 600
ounos Of gold. All the gold has been
depo,ited Ia the treasury, aud The
reserve now Is several millions oluye
the legal limit. That part Of The cou-
tract which required half the gold to
be brought from Europe has not been
completed, the amount still beii g
several millions short. The syndictte
has turned ia domestic gold to ma Q
the total, but will not got Its tonds
Il / 1t has imported an equal amount.
Another obligation assumed by the
syndicate was TO prevent the export Of
gold while It's contract lasted. This II
has been able TO do so far, by control
ing the market for foreign exchange,
n practically by paying premium t.
Keep at home gold for which there was
export demand This obligation will
last until all the foreign gold called for
by the contract shall have been i'm
ported. Tnen the syndicate will cease
TO control the exchange market, aud
II will again fall under operation OF
natural commercial conditions.
This is the crisis In the financial op-
erations OF the government 10 which
persons who understand the nature Of
the Belmont Morgan contract have
been looking forward with SOME hnX-
iety. Export Of gold has been pre-
vented artihcially for several months,
That IL, in consideration Of contract
for purchase Of bonds, on which they
made profit Of SlO,OOOOO0 10 Sl2O00,.
900, the Belmont Morgan syndicate has
kept gold in this country, in spite Of
rates OF exchange which called for ex-
port, by paying premium upon g..
They have exactly reversed the opera
tion Of the German bankers, who
placed the Austrian gold loan by pay
Ing premium for expectation Of gold
from New York when the rate " eX-
change did not call for lt.
The question now IL, What will b,
the moysment.of Of gold when this arIi
ncial check Of expectation shall be re'
moved sy completion of the contract
Vita ai.s syuuIcaIe anu explry Of th'
term " Its obligation 10 enforce II u
the Outflow Of gold which was stopped
by the bond sale last April shall be- re-
sumsd aud continue, all that has been
dsDs Slnes then will ~ for nolhlng,
Drain upon lhe gold Va ihe New iofh
tanks 10 meet demand for export
wsuld revive the panic ~ last spring.
aud there would b. new raid upon
the treasury, Ths hanks have an enor.
nous stock VI legal tenders % eHohanEs
foT gold II the sublTsssury, aud oould
exhaust tbs reserve ins few woshf,
oompsllings nsw baud sale to ivplsnisb
II, aud ~ enssinR ihs fatal sss sas
~ lasl vlnisT, vbsn gold soid for bonds
vss ai onos drasn 0ul " lls treasury
~ boy nss bonds silh
The hops u tbs treasury ls tbai ibls
gsfll msy Ia sgsIisd w ehspgs ~
oolpmsTslsl snondiiions u 10 unde
nisbls that iinass haYs improved slnos
ihs baud ospilael sss mads, lhpuEh
ils siisei 10 pgsFsnisd ffom apIssnpg
ig ihs publls fsFspuss ~ lls lnsspsais
fslit ~ Dsmsefslle laun isEislsiionI
indasily wAs fsglFed SONS . hsi in ihs
sssl ssd lb,a,sb hisiTp 1sds sspdi
ilsns ass npl isFHsiis, ihfle 10 sans
ssw dsasisa fgf AHlsnasn ssnunilss
shisl aasy dlseegni ibs dsiasad go
ssla ~ ssliis iIsds bslsnoss % esu,
nsl ~ dsifinlnsd phabH ihfs
slsnKss 80 eapslaHsiis fHaufb a
kssp iis isls ~ sseasprs iflns Ha
sid sspfi lsiHi unln ihs wHf 81
el,sfk " lhs haad psFlnEfnasalt HsI
hsss lssH fsm0fed HH1 ihH HaIsIaI
ssasss " baslnssi sfslH hnHHNi $500
f,ss oisfsii,a Ws fhsli nai kHas tH
ssgasl ssfts shslha ihf fi iAsi
hsnT sysi ll,s sai'5 lsi HFHH bee
i.ssn sEsfisa ~ oall silalHaf
NhfHlH Hniigm
tskffWla Az A HlHsH Al iiH rIHf