The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1896-05-18
and in his long term of service never had
an accident.
THE FREE SILVER SPECTRE.
1t Looms Up Bigger Than Ever on Ma
tiOnaI Horizon.

Panic Feared in Case of McKinley's
Northumberland if the Chicago Conven-
ton is Controlled by the Infiationists.
Washington, May 16.-The influence of
those whiffiing politicians who are more
anxious to climb onto che Mckinley
band wagon. than to make sure of their
candidates. soundness on the all tmpor-
tant money question, is making itself felt
in an unpleasant way. This, supplement-
ed by the continued export of gold, the
renewed agitation in the Senate against
the issue of bonds and the activity of
the silver element in both political par
ties, is causing concern in administration
circles. 1t is believed that the loss Of
gold would cease with the tightening
OF the rates for money and the Gxpira-
tlon OF the spring expectation if 1t were
not for the uncertainty of the political
situation. 1t is considered by the friends
Of the administration to be of the high
est Importance, not merely for party or
political reasons, but for the maintenance
of the public credit, that both political
parties and their candidates should plant
themselves upon an unequivooal gold
platform. If Mckinley should be nomi-
vention should then be carried for free
silver, 1t is feared that serious panic
would follow. The amount OF gold with
drawn from the subtreasury at New
York yesterday for export WAS 81, 600, 600,
and the smaller Withdrawals of the day
for domestic purposes were $l07, 700 in
gold coin and SIS, 800 in gold bars. These
losses reduced this net reserve to sl13, 141,-
462 representing a.net loss since May
of about $4,000, 0o0 The redemption of
legal tender notes at the subtreasuries
since the advertisement for the bond is
sue on January 5, have been about $780,,
600. COO large part of this sum was
withdrawn in anticipation of payment
for the bonds and only about $40, GOO, QUO
has been taken for export. The export
demand is now the controlling factor and
other losses are comparatively trihing.
The present rate OF losses would carry
the reserve close to 800, 900, 900 on June
!, and the country would again be
brought fnce to faoo with serious finan-
cial situation. 1t has been the purpose
and expectation Of the administration to
avoid another issue of bonds and 1t has
been supposed that under nominal busi-
ness conditions the increase in the gold
reserve caused by the last bond iss
would maintain an adequate gold fund
until President Cleveland laid down his
responsibilities for his successor. The
net proceeds of the bond sale are said to
have been about Sill, 1866 1913, and already
S65, 900, 900 of this gold has oozed out of
the treasury, including that which was
taken ouring January with the purpose
of making payments for new bonds. Seri-
Gus difficulties are feared in the money
market, sand serious temptations will be
held out to the next Congress, il another
sum of $50, 000 00O or $780, 600, QUO is with
drawn from circulation and locked up
in the treasury. The general cash balance
now stands s267, sos, ,903. The withdrawal
of another sum of 500, 900, 900 or $110,-
100000. including the premium, would
raise this accum ulation of idle currency
to $377, 900, 600. 1t would be an amount
which might seriously cripple business
operations by raising the rates for money
for legitimate enterprises and would
afford temptation to Congress to MAKE
appropriations which would be almost
irresistible. 1t is felt by many that the
issue Of bonds, adding to the permanent
debt OF the country, cannot be continued
indefinitely in order to maintain the
party of the legal tender paper. This
outstanding paper has already been re-
duced to about 1850, 900, 900 by the aocum-
ulation of $S5, 029, 1l6 in United States
notes, and s32, 436, 597 in Sl>r notes
in the treasury cash. Another issue Of
bonds with the usual exchange of the
gold proceeds at an early date for paper,
would still further reduce this outstand-
ing mass of paper money. 1t is felt. how
ever, that contraction has already ad-
vanced far enough il confidence in our
monetary system and our intention to
adhere to the gold standard WAS not seri-
ously impaired in Europe. Mr.. Cleve-
lands administration has only itself to
blame if It's financial calculations are
upset by existing political conditions.
Early in the session Of Congress. Speaker
Reed and Mr.. Dingley proposed, and the
House passed bills, that would have CIV
en- ample relief. The aid of the sound
money Democrats would have passed
those bills through the Senate, but Mr..
Cleveland did not lift bis. finger to aid
in this. The effect of the uncertain at
titude of Mckinley on the money ques-
tion is consolidating conservative senti-
ment against him, although it has not
alarmed some Of the politicians who are
anxious above all to get something for
themselves BY climbing on to the band
wagon.