Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-07-23

is a perpetual sink Of silver, absorbing 1t,
never to return, by from thirty to sixty
dia's absorption Of silver win be enlarged
by tine steadiness of price for silver, fixed
by our reopened mints.
They threaten with a sudden retire
ment Of $GOe, 100000 gold with the accom-
panyins panic. causing contraction and
commercial disaster unparalleled We an
swer that our total stock of gold other
than about S1O,OO0,OOO or $15O0OOU circu-
latinS on the Pacific coast is already in re-
tirement. Practically. all our gold Is in the
United States treasury or held by banks.
The gold in the treasury will remain there
[ If the Secretary avails of his option to re-
deem United States notes in silver The
gold In the banks constitutes the quiet and
und1sturbed portion Of their reserve against
their liabilities. 1t will continue to do
money duty such reserve after free
coinage for silver Is enacted. Hence. a
premium on 1t will not contract the cur
rency. Tho utmost possible contraction of
the currency will be the few millions cir
culating on the Pacific coast, and this will
be retired but slowly
similar threat Of flight Of gold was
made for the Bland act Of 1878 President
Hayes was urged to veto It, but Congress
passed 1t over the veto. Instead of a flight
OF gold as had been predicted, we gained by
importation $4,O00.oO0 the first wear SO
UU.Ooo the next and $90OO00OO the third
year During the twelve years that the act
was on the statute book we gained 1921 ,OOO-
w OF Foreign gold. Instead of the destruc-
ton of our credit abroad, as had been pre-
dieted. the United States four per cent loan,
which stood at 101 on the day of the enact
,nent, sold at 10 per cent within three
years, and at 1870 per cent subsequently,.
instead OF defeating the resumption of
specie payments on January 1 of the fol-
lowing year, the 24O00,O00 silver dollars
which were coined in 1878 and circulated by
means OF the silver certificates reduced the
demand upon the government for gold.
Hence the threat of disaster now is without
dot Hon
This, then. is what will follow the re-
opening of our mints to silver; the gold al
ready IN the treasury will remain there If
common sense dictates the treasury man
asement; that Is, II the treasurer exercises
the option to redeem United States notes in
silver. A premium on gold will not occa-
sion contraction of the currency, bank
hoards OF gold continuing to serve as a
portion OF bank reserves against bank LA
oiiittes premium on gold will tend to
increase our exports by causing higher
rate OF foreign exchange; that Is to say, by
yleialns larger net return in dollars on
the sale OF bills Of exchange drawn against
goods exported. A premium will tend to
diminish our imports by increasing the cost
OF baiis of exchange with which to pay for
goods imported. The tendency of increas-
ing our exports and decreasing our I'M
ports WILL be, first, to set our sptndfes run
ming. swell the number of paid operatives,
increase their wages, thereby adding to the
NUMBER and paying capacity of consumers.
home products and manufacturers, with
prosperity In general as the result assured.
Ihe tendency of increasing our exports and
decreasing our imports will be, second to
establlsh credit balance OF trade for the
United states. A credit balance 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 cents
on the dollar. The European merchant or
banker will, therefore, make his trade set
Elements with us in gold. more profitable
by from three to seven 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 and
silver money Is established in the markets
of the world. Herewith, the S71.2a grains
q pure silver in our silver dollar and the
BID grains Of gold in our gold dollar be-
come of exactly equal worth, as bullion, in
New York.
Mr.. ST. Johns speech was loudly ap-
plauded.
A motion was made that special COM
mfttee, consisting Of enc delegate from
each delegatton.b be appointed to confer with
like committee of the populists for the
purpose Of settling the differences between
the two factions.
Half doxer men at once began to de-
bate the question and much confusion pre-
vailed NJ. L. Olmsted of Oregon said he
was q PcpuHst, and the papllfsts were
ready to meet the silver men half way,