The Prince George's enquirer and southern Maryland advertiser. (Upper Marlborough, Md.) 1882-1925, 1896-01-03
COMMERCIAL SUPREMACY.

/ COMMERCIAL SUPREMACY.
It Is Within Our Reach II We 0eg
Onto q Solid Gold Basis.
That most eminent of all financial
writer's, Paul Leroy Besulieu. has IN
article in the December Forum entt-
tied Conditions for American Com
mercial and Financial Supremacy.
He points out clearly the injury Ne
are inaicting upon ourselves by agi-
tating for cheap dollars, and by keep
ing our Government in the banking
business. These destroy confdense
and scare investors away.
Discnssingour 'greenbaoks (which
are responsible for keeping our Gov
eminent in the banking business--hel
finds that while other great countr1eg
have issued or caused to be Issued
considerable amounts Of paper money
during critical periods ours is the first
10 refuse to take up and cancel IT.
notes a. soon as possible. This was .
great and vital error which we did noe
repair entirely when We resumed
specie payments in 1879. "a govern
ment," he says sis i'll fitss6
and IN equipped to msintai3
paper money in circulation, even Il
the paper is redeemsble in specie. The
redemption done is in itself . great,
trouble and . continual embarrass.
ment." He thinks that the junction
aries Of government 'swho must ask
by fixed and always identical rules.
cannot make q flexible and safe cur
rency out of Government paper.
II the government were out OF tho
banking business and private banks
were left to deal with the expectation
of gold problem they would. when
harmful expectation begins, raise thu
rate of discount untilsuch expectation
is checked. This is what European
banks do in similar emergencieA
When the gold movement is controlled
in this way. it produces ''only light
and momentary embarrassment, not To-
be compared with The shock and the
discredit resulting from an outgo q
gold the end of which cannot be oal-
culated.
IAN advance in the money rate in
order to arrest the outgo of specie
particularly gold, is sure to succeed IL
the Government does not disturb the
natural course OF operations by ari0-,
cial measures Such an advance cheoka
| the imports of merchandise, and, on
the other hand, stimulates expofts e
draws capital from abroad to sesk the
better returns wkich are the conso-
quence Of this advance. !
''Thus whenever the banks, pubic
or private, are charged with the pro1
lection Of the metallic reserve OF the
country, they accomplish it with osR-
tainty by this sovereign method e
raising the money rate. On
the contrary. when the state isgue0
he fiduciary currency, as in the Uni5
ted States, it has no real means @
protecting the metallic reserve. -
cannot raise the discount rate, for y
does not discount commercial pepsE.I
Il is under obligation to pay gold "a
oil who demand it, without any poweE
to regulate or reduce the demand Il
is absolutely disarmed. It's sole re-
source is to secure specie by lcana
abroad. But a. these loans have nj
effect ON the general current Of buaia
ness. their proceeds are soon exhanse4
ed and they must be renewed Thl
inoapscity to protect its reserve y the
chief reason why state is not httso
to issue fduciary money"
After Q discussion of ''Bimetallim,
which should be read by ell, II
Leroy eaulieu concludes - follows3
Gas soon a. the capitalists, small
and great, of Europe shall know thaa
the United States have definitely
adopted the gold standard and rs3s1
gated silver to . subordinate none
tary role the savings of WestsE1
Europe will flow toward that county,
Freed from the fear that he may soele
day be repaid in Deprecated money.
every person with savings IN ~
Europe will be happy to find RETURN
of 81 to 4 per cent in good Americas
securities, and Of to 81 per cent IN
the shares of well established AmsEi1
can enterprises Then the immense
territory OF the United States viii ind
its vast resources rapidly and oo0-
pletely put in the way of exploitatioa-
The abandonment Of notes or pape<
money issued by the state. the definite
adoption of gold as the sole standard
these are the two necessary cond1-
tions on which tho United States can
secure financial position a. import
ant as that they now hold in agfioal-
ture and in industry. On these two
conditions they can some day approach
and equal Great Britain ~ . financial
power. If. ON the contrary, thsy
persist in their system Of governmene
paper money and in the :rehabihta-
ton of silver, their industrial and
commercial development alike Will b
trammeled, and they will undergo
marked and permanent experiences OF
SranNia1 woakneaao