The copper country evening news. [volume] (Calumet, Mich.) 18??-1907, 1896-08-04


Pacific coast is already in retirement
Practically all our gold is in the United
States treasury or held by banks. The
gold in the treasury viii remain there u
the secretary avails of his option 10 re-
deem United States notes in silver. Inc
gold in the banks constitutes the quiet
and undisturbed portion of their reserves
against their liabilities. Ii will continue
10 do money duty as such reserve after
free coinage Of silver is enacted. Hence a
premium on il will not contract the cur
rency. The utmost possible eontrae-
ton of the currency will be the lew mil
lions circulating on the Pacific coast,
and this will be retired but slowly.
A similar threat OF flight of gold was
made for the Bland act in 1873. Presi-
dent HAYES was urged to veto IL, but
congress passed il over the veto. In
stead Of a flight of gold, as had been pre-
dicted, wegained by importation 81 ,OOO,-
900 the first year. $40 ,000,0 00 the next
and 500, 000, 900 the third year. During
the twelve years that the act was on the
statute book we gained Sl2l, 100000 OF
foreign gold. Instead of the destruction
OF our credit abroad, as had been predict
ed, the United States 4 per cent loan,
which stood at 101 on the day OF the en-
actment, sold at 100 per cent within
three years and at 1870 per cent subse-
quently. Instead of defeating the re-
sumption OF specie payments on January
l OF the following year. the 24,OOO,OOO
silver dollars which were coined in 1873
and circulated by means of the silver GER
tificates reduced the demand upon the
government for gold. Hence, the threat
of disaster now is without historic foun-
daiion.
This, then, is what will follow the re-
opening of our minis to silver the gold
already in the treasury will remain there,
il common sense dictates the treasury
management, that is, if the treasurer ex-
ercises the option to redeem United States
notes in silver. premium on gold will
not occasion a contraction of the cur
rency, bank boards OF gold continuing TO
serve as portion of bank reserves
against bank liabilities. A premium on
gold will tend TO increase our exports by
causing higher rate oiioreign exchange;
that is to say, byyielding larger net re-
turn in dollars on the sale OF bills of ex-
change drawn against goods exported.
A premium will tend TO diminish our i'm
ports by increasing the cost Of bills OF ex-
change with which to pay for goods i'm
ported. The tendency of increasing our
exports and decreasing our imports will
be, first, TO set our spindles running,
swell the number OF paid operatives, in
crease their wages, thereby adding to the
number and paying capacity OF consum
ers, and thus enlarge our home market
for all home products and manufactures,
with prosperity in general az the result
The tendency OF increasing our
exports and decreasing our imports will
be, second, to establish 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 3 tn cents on the dollar.
The European merchant or banker will
therefore make his trade settlements with
Us IN gold more profitably by from 3 to Z
per cent than 10 his silver. With the in
slant 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 37lh grains of pare silver
in our silver dollar and the % u grains
OF gold in our gold dollar become of ex-
actly equal worth as bullionin New York.