The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-03-24
OUR NEMEsIs-THE GOLD RESERVE.

The absurdity of our financial COM
| plicationS seems to center in the effort
| TO maintain our gold reserve. Not
withstanding it is authorized by law,
and maintained in operation for years,
! it is, in fact, nothing more than an
absurdity. The most that can be said
! of it is, that it come of the eXigency
of the war, adopted to give stability
to our legal tenders at Il time when
credit was needed, and a time when the
issue of great conflict was in doubt.
That S10O,O00000 was the amount des-
ignated is one of those accidents of
legislation which might have resulted
in making the amount greater or less,
according to the crude and uncertain
estimate of a legislative body. The
figures then made have been allowed
to stand under the varying conditions
of peace and war-of unlimited credit
at home and abroad, and credit i'm
paired by the manipulatiOnS of gold
gamblers and stock jobbers for over
thirty years.
The simple proposition Of floating
$500, 100000 of our demand notes on 4
reserve of one-fifth of that amount
Independent of the good faith upon
which they were issued and which is
the real security today, is one that
would not be entertained for Il mo-
ment in ordinary business transac-
e. All int
that the very thing which has hap
pened, and which now hangs like a
pail upon our financial horizon, is liza
bic to occur at any time, the abSurdity
riseSe to its true significance. The
very paper which the reserve is held
to secure is used as the means for
drawing it out without notice, after
which the law makes it obligatory
to replace it, subject to the same de-
pledng process. The abSurdity is
| further emphasized by the fact that
it supplies the means to those who are
boarding gold, both at home and
abroad, to gather it in in good round
sums, without even the expense of a
brokers commission. 1t is no secret
that France, England, Germany and
Autria have been laying up gold
against the day Of possible need, and
that they have liberal use of this art
less device so literally provided by our
government. There is no Disgusting
the fact that the gold of the world is
practically out OF circulation today.
The probability of general European
war has driven each of the great pow
ers TO provide amply for any emer-
gency. The great standing armies, the
navieS and the ordnance in every
quarter of the world call for a full
treasury, and very naturally they have
made provision for all emergencies.
Complaining the situation still fur
Their, the Chinese indemnity is soon
to be paid, and there is not n doubt
that the demand will be made in gold.
\ quarter of billion dollars. drawn
from the worlds supply of gold, is no
small draft just at this time. Mean
while the endless process of drawing
il from the United States treasury
by means of issuing new bonds of in
debtedneSs, and selling in the markets
OF the world, in order to keep our
reserve intact, will go on, but where
will the end be?
1t is thus We are bling used as the
vehicle for supplying the demands
of every nation, every syndicate and
combine who chooses TO ill its Golfers
| through the means we have provided.
This So-called reserve is not only an
absurdity. but an notwithstanding up
a ruinous drain upon the resources
OF this country, great as they are, but,
like everything in this world. have
their limitations. 1t is our Nemesis
in the day of peace. but where would
we be in the event of war with, even
an insignificant foe: