The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1896-07-30

We answer that our total stock of gold
other than about $4,000 900 or sI5,o00,-
900 circulating on the Pacific coast Is al.
ready in retirement. Practically all our
gold is in the United States treasury or
held by the banks. The gold held in the
avails Of his option to redeem United
States notes in silver. The gold in the
banks constitutes the quiet and undis-
turhed portion of their reserves against
their liabilities. 1t will continue to do
money duty as such reserves after free
coinage for silver is enacted. Hence a
premium on it will not contract the cur
rency. The utmost possible contraction
OF the currency will be the few millions
circulating on the Pacific coast, and this
will be retired but slowly. A similar
threat OF fight of gold was made for
the Bland act OF 1878. President Hayes
was urged to veto it, but congress passed
il over the veto. Instead of fight OF
gold, as had been predicted We gained by
Importation $4,000. 600 the first year,
$40. 600 900 the next and 10000, 900 the
third year. During the twelve years
that the act was on the statlte book we
gained 1921 100000 of foreign gold. In-
stead Of the destruction of our credit
abroad, as had been predicted, the Unit
ed States per cent loan, which stood at
l0l on the day OF the enactment, sold at
100 per cent within three years and at $50
per cent subsequently. Instead of defeat
ing the resumption OF specie payments on
Jan. OF the following year, the 24,000,-
900 silver dollars which were coined in
1878 and circulated by means OF the sill
yer certificate, reduced the demand upon
the government for gold. Hence the
threat of disaster now is without historic
foundation.
This is what will follow the reopening
OF our minis to silver. The gold already
10 the treasury will remain there, il COM
mon sense dictates the treasury manage
ment; that is, il the treasurer exercises
the option to redeem United States notes
in silver. A premium on gold will not
occasion contraction OF the currency,
bank boards of gold continuing to serve
as portion OF bank liabilities. A prem
ium on gold will tend to increase our ex-
ports by causing higher rate OF foreign
exchange; that is to say, by yielding a
larger net return in dollars on the sale OF
bills OF exchange drawn against goods
exported. A premium will tend to d.
minish our imports by Increasing the
cost OF bills OF exchange With which to
pay for goods imported. The tendency
our imports will be TO set our spindes
running, swell the number OF paid oper-
atives, increase their wages, thereby add.
ing TO the number and capacity Of con.
sumers and thus enlarge our market for
all home products and manufactures,
with prosperity in general as the result
assured. The tendency of increasing
our exports and decreasing our imports
will be to establish credit balance of
trade for the United States. A credit bal.
ance of trade means that Europe has
become our debtor, and must settle with
us in money. Europe's silver money is
overvalued in her gold, compared with
ours, by from to Z cents on the dollar
The European merchant or banker will
therefore make bis trade settlements with
us in gold more proftably by from 3 to Z
per cent. than in his silver. With the
instant that European trade settlements
with the United States are made in gold,
parity for our gold aud silver money is
established in the markets OF the world.
Then with the 81 % grains of pure sill
yer in our silver dollar and the 23 %
grains of gold in our gold dollar becomes
OF exactly eqnal worth as bullion in New
York"