The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1896-09-11
UNTIL AFTER ELECTION.
The Money Power Is Afraid to Risk the
Influence o9 Another Bond Issue.

1t is but little more than five weeks
since the gold ccutractionists, fright
ened by the rapid depletion of the
treasury gold reserve, the early pros
pect of another bond issue, and the in
evitable effect that such issue of bonds
with which to bolster up our lettering
gold standard must have had upon
voters, took steps to replenish the gold
reserve and place check on the eX-
portation of gold and consequent drain
on the gold reserve. To distract the
masses of the American people from
the consideration of the iniquities of
the gold standard has been, to the
gold centractionists,; a prime necessity
and another bond issue would have
done much to focus the attention of
voters on a monetary system that has
proven SO faulty and unstable that it
has only been kept from collapse DUR
ing the past three years by bond issue
after bond issue and the saddling of
interest charge after interest charge
on our people.
That such focusing of the attention
Of American voters on our monetary
system must upset the fond hopes of
the gold contractionists who hope to
still further profit from a continuance
of the suffering of our producing class
,es that is inseparable from the appre-
.ciating gold standard and continued
fall in prices consequent thereon, was
and is4quite evidentand to none more
SO than the gold contractionists. So,
when toward the last of July another
bond issue was threatened they strove
to avert it. The New York banks,
followed by those of Philadelphia,
Boston and Chicago, SURRENDERED to the
government in exchange for green
backs, sufficient of their holdings of
gold to raise the treasury gold reserve
to a sum considerable in excess of
800, 900, 600. But after having thus re-
plenished the gold reserve to an amount
in excess of the sum of 500, 600, 900,
fixed upon by the gold contractionists
and without the authority of law as
the minimum below which the govern
ment cannot permit the amount. of
gold held for the redemption of gov
eminent paper, of green backs and
treasury notes, to fall with saftey, the
question was how to keep it intact.
The drain on the treasury for gold has
been largely due to the demand for
gold for export and the green backs
and treasury notes presented at the
New York sub-treasury for redemption
in gold had been largely presented by
those bankers. dealing in exchange and
who had need of gold for export to
cover the drafts they had drawn on
London and to meet the demands of
remitters. To avert the shipments of
gold was the first step that had to be
taken to check the drain on the gold
reserve. And this step the exchange
bankers under the leadership of Mr..
Morgan, at once prepared to take.
But the demand for the export of
gold was urgent. For the year end
. ed June 80. 1896, as for years previ-
onsly, our exports had fallen far short
of providing the means of the pay
ment of our current foreign indebt
edness in full True, our exports had
"a been largely in excess of our imports
indeed, for the fiscal year 1896, the
trade balance in our favor was over
500, OO0, 900, but this excess of exports
over imports fell ,short of offsettipg
the interest charges accruing against
G us ON account of our immense foreign
debt. And besides these interest
charges, payment of which we had to
provide FOR and which have aggregated
for the past few years not, less than
$500, 600. 600 per annum, we are called
upon to make provision for the ex-
genses Of Americans abroad and for
freights earned by foreign shipowners.
For the payment of all of these
charges we must provide over and
above the amount of the Indebtedness
we incur on account of what we buy
g abroad. And exports of merchandise
in excess of imports failing to provide
the means for the payment of this in
. debtedness, an Indebtedness Incurred
on account of interest charges, ex-
penses of Americans abroad and
freights earned by foreign oshipowners
and aggregating not less than $780,
200. 600 year, the demand for the ex-
port of gold is great So during the
last fiscal year we exported over $780,
O0o, 900 worth of merchandise in excess
of our imports and our net imports of
gold and silver sufficed to settle in
debtedness of 500, OOO, 600 more. Yet
still large amount of Indebtedness
remained unpaid, calls for the pay
ment of which made an imperative de-
mand for gold for export -.
This condition the exchange bank
ers were called upon to face. They
had set themselves to the task Of
checking gold exports, and to do so
they were under the necessity of pro-
> viding drafts on London to all those
under the necessity of RENTING
abroad, 'and to meet the drafts drawn
on London they had to provide the
means of payment They knew that
drafts drawn by American exporters
against exports of merchandise. and
which thew could purchase, and :for,-
ward to London for.their credit, CO uld
not suffice. and had barred themselves
against the export of gold. So but
one course remains to them. They
must'borrow abroad; they must pay
their drafts drawn on London and
which they could not cover with the
bills OF exchange drawn by American