The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1896-07-03
THE GOLD RESERVE.
The Reason It Exists aud what II
u Means.
A COMMON NEUTRALITY-SUSPICIOUS.
Concerning II Explained hway--IIow the
Gold Reserve was Drpisted-Thr chief
Cause tho Wilson .GormHn Tariff Art-A
Proper TnrIrwonld Enable the Gorern,
mrnt 10 Keep II Intact

The New York Press publishes the fol.
lowing Inquiry and replyN which con-
talns a comprehensive reason for tho
gold reserve IN the treasury and the ne
ccsslty for maintaining It:
TO the Editor Of the Press:
sEr-I confess stupidity, Ignorance
and lack of ull those elcmnts which go
to make up the Statesmen OF our coun-
try. This Is why cannot understand
why our government needs n hundred
millions OF gold slumbering far all time
In Its vaults, In the little city where
reside and In the greatest city In tho
world we conduct our business without
any gold reserve" We Issue bonds,
and the security buCk OF them IL not
gold but our real estate. Our stnte car
rles no gold reserve In its vaults.
Now, II cities and states get along
without u gold reserve independently,
why can't they do 1t collectively MS q
nation? To my unstatesmanlike In
stlnct II seems to me that our banks
md BANKERS. and not our government,
are the PARTIES who should decker In
gold, and can't see why such rich
as TO be- getting its notes discounted for
time to time. 4 private business, con-
Quoted as our cOuntry's financial affHls
have been recently, would bring chaos.
The only safe rule for families. states
and nations IL to provide for their sup
port by themselves and not by borrow
ing from foreigners. A nation cannot
be truly independent which has to beg
Its pocket money from the money kings
OF Europe. G. G. LOWELL.
Mount Vernon. n. Y, May 80.
This Is good example OF an hmerl-
can citizen who does not, stop to think.
Unless all Amerlvan citizens stop to
think there Is going TO be n great deal
Of trouble In this country.
II this citizen had stopped TO think he
would have reCOgnizcd-for he is plain
~ an Intelligent although needless.
citizen-that the government Of the
United States has function which the
cities and states that get along without
gold reserve do not possess. That Is,
to provide n safe md sufficient currency
as medium 0f exchange for the citizens
Of the country. What Is called the bas-
Is OF that cursncy-1that Is to say, II GER
tain amount OF standard money, good
the world over with the same face and
intrinsic value-must be constantly
maintained. The government must, In
short be able to redeem ut a moments
notice every ono OF It's promissory notes
which It has put atloat for ITS citizens to
do business with. For this purpose. and
not TO pay Its expenses or supply It with
pocket money. It Is obliged to keep its
gold reserve.
Now. under normal conditions there IL
no difficulty In keeping that reserve
For fhirtPaD t'HafG frory, 1870 iii 1900
the average American citizen outside OF
banks and brokers' Offices did not know
that the government had gold reserve
any more than 4 man with q sound
digestion knows that he has stomach.
This was because the reserve WINS main
tained out OF the governments ample
revenue. II was maintained the more
easily because prior 10 1890 the promls-
sorry notes OF the government, payable
In gold-the greenbacks-weref fixed and
limited Il: .s.:na,mt 80 TINT no one could
doubt the governments ability to meet
Its obligations. When in that year the
Sherman act was passed. adding $780,
900 I month to the governments gold
liabilities. while adding nothing to Its
gold stock, doubts began to be felt Of
the continuance OF the governments
ability TO redeem Its promises SO gold
ceased to come TO the treasury. But
this would have made little difference
had the notes paid into the treasury
even In exchange for gold been allowed
10 remain there. AS long as note was
In the treasury II was as good as gold,
for 1t was gold obligation eXtlnguish-
ed. When the supertuous currency OF
the country was thus locked up and de-
privcd Of Its depicting power. no harm
could come to the reserve. simply be-
catr-c there could be no further means OF
lowering II. 1t was hoped and expect
ed. OF course. that the increasing busi-
ness OF the country, with Its natural
growth, would absorb the extra $1,000
900 month provided by the Sherman
act.
Under these circumstances came the
election OF 1892. Imports fell on. rs
importers believed that lower RI ties OF
duty Would be enacted by the success
full party. according to Its promise
Revenue fell off In consequence, and
long before the promised act was passed
the deficit began eating into the gold
reserve. Between the decrease Of I'M
ports, due to the expectation or the act
the present tarlfr-and the decrease
In duties fixed by the schedules OF the
act. the entertainments up TO last De-
cember OF that deficit on the gold stock
amounted to Sl35,000, 900.
But this Is by no means ull the harm
that came to the gold reserve by reason
NJ the election OF 1892. Business. In the
first place, stopped In pnnic-strickcn
realization OF the fact that system
which endured during the Motive man
hood OF all men living was about to be
violently ovcrthrown. Consequently the