The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-17
THE GOLD RESERVE AGAIN.

The effect of the disturbed condi-
tons in the financial world is again
apparent in the renewed raid upon the
treasury's gold reserve 1t seems
strange enough that this one concrete
fact, standing out before the eyes OF
all the people, does not teach them
where the trouble lies The treasury.
is able to keep all the gold that it
wants as long as there is no threat of
action that will make. the gold dollar
worth more than any other kind OF
dollar. The instant, however, that
conditions appear or threaten to ap-
pear which would place a premium
upon gold, ten thousand hands are
reached out to grab at the vanishing
dollar, and the treasury reserve dis
appears like water poured upon the
sands. The present renewal of with
drawals from the treasury is not a
consequence of any commercial or in
dustrial conditions whatever The
gold that is being drawn out, like a
large part Of that which has been
demanded within the last year, in re-
demption of greenbacks is desired for
| boarding. The process of currency
contraction, which the advocates OF
free silver affect to depIore. and which
| has been in steady progress In this
country during the last three years,
becomes graver and more pronounced
from the moment that free coinage
becomes an actual living issue In our
politics. For there has been a CON
traction in the media of exchange that
Is the source of large share of all
our industrial misfortunes. 1t is only to
small extent a contraction of actual
money. This consists of the gold which
has been withdrawn from actual use,
owing to the belief that it will later
on, command a handsome profit If the
plans of the silver monometallists
should succeed.
But that is mere bagatelle as com
pared with the contraction Of our
credit money. The banks of this coun-
try alone pass through their clearing
houses every year from $50, 000. 900 900
to $4,000, 100000 of checks, drafts and
other substitutes for currency. This
is the real circulating medium of the
country; so vast in it's amount and so
flexible in its adaptation to the de-
mands Of trade that any interference
with 1t is ostIdangerous to the health
of the body polite What is the ut
| most contra ctinn +bo+ oo, -
IN the money Of the country which,
all told, amounts to only about 50, 0O0.-
000,00O, as compared with the contrac-
ton of from $4,000 600, 900 to SEE. 600.
100000 in the circulating paper that
plays the. part of money and that re-
spends with the utmost sensitiveness
to confidence and to doubt? It is this
credit money which has been contract
ed and contracting ever since 1893. It
is this movement that is the source of
our deepest troubles, and that can be
remedied only by a return of conf
dence. The dollar Of gold which is
pulled out Of the treasury reserve is
mere nothing in comparison with the
thousands OF dollars Of credit paper
which that one dollar represents and
can support. but which will not be cir
culated failing the existence of solid
basis of redemption. Therefore. the
REVIVAL of gold Withdrawals from the
| treasury, as the result Of the greater
prominence given to the silver cues
ton, means more distress growing out
of further contraction of the vast
volume Of circulating medium with
which, and not with the metallic basis
our business is and must continue to
be done.
Tne gold reserve, while maintained
under present conditions, is as infaI-
| lible an indication of the financial CON
d1tion as a barometer is of approach
Ing weather changes. The new raid
that has begun means nothing more
| or less than that a certain number of
people who have money to invest be-
lieve that by putting their capital into
gold dollars they will get back com
| Portable premium in the event of
| free silver victory, and that even the
agitation of the question may pos
slbly bring them profit within the
next few months: 1t is a diabolical
speculation upon the life and dasil. oe
the nation. sbutsfit is h,anoan notrra
al az resentment of the peo-
/ PIG A-ould be directed, not only against
men who are ready to traffic in the
country's misfortunes, but also against
those who create for them an oppor-
| tunity.