The times. [volume] (Richmond, Va.) 1890-1903, 1896-02-22
Position of tie Treasury.

Editor Of The Times:
Sir,-I have read with interest your
editorial remarks upon my letter concern
ing The strong position Of The United
! States Treasury.
II it De true. a. YOU seem 10 think, that
Europe really ears We arc going TO
descend 10 a nfty-cent dollar. and is going
TO continue to send back American Sc
curities. IL would follow, as you sug
gest. that the present strong position
Of the Treasury would he liable TO be
weakened by a future drain of gold.
1 think, however, with Difference 20
your opinion. that you lay too much stress
upon past conditions and attach too little
importance 10 the recent changes IN
the financial situation.
We all know that Europe. soon after
the passage of the Sherman law, and
about the time Of the Barring panic, be-
came alarmed at the reckless manner in
which we were initiating our currency
With cheap silver dollars. and has since
been persistenty selling our securities,
calling home her balances and draining
US of our gold.
But We also know that those drafts
upon our gold supplies were greatly Ia
cilitated by the redundancy OF our paper
currency and the low rates OF interest
which have prevailed In this country from
January l, 1894. 10 December l, 1895.
Great changes have been wrought in the
financial conditions during the past three
years: and while much remains to be
accomplished before the country is placed
upon sound foundation, | am inclined
to think that We have descended to the
lowest grade OF depression, and that the
future movement will be upward and
onward. Let us briefly review the
changes which 1 claim are inspiring con-
iidence at home and abroad.
First -Four years ago this country pro-
duced only s33 900 of gold annually
and was purchasing 5OOOOOOO ounces of
silver per annum for coinage, under
compulsory enactment of Congress. To
day she is buying no silver for coinage
and is producing gold al the rate of
$4,000, 900 per annum. Our ability, there
fore, 10 stand a drain Of gold Is greatly
improved.
Second. Ever since the panic OF 1898 there
has been redundancy Of paper money,
which has, In accordance with well rec
ognized and memorable laws, heen driV-
ing our gold from circulation and out of
The country. We have taken i'm and
locked up in the vaults OF the Treasury
more than one-thrd Of our legal tenders.
where they viii be held during Mr.
Cleveland's administration. We have no
meet the demands OF business This
being the case. there is 10 good reason
why the New York banks should not as
sumo their old custom of furnishing gold
FOR export instead OF calling on the
Treasury.
Third. The very low rates OF inter
est which have prevailed for more than
two years have rendered il impracticable
FOR foreigners 10 use their gold balances
them to be dawn home. The locking
up of Sil2,00O.0O0 of money. proceeds OF
the bond sale. or d large part Thereof,
has raised interest rates, and will keep
money 80 active as to create demand
for foreign gold, which will surely re
spond 20 the demand.
Fourth. \ condition Of distrust has
prevailed AT home. in Wall street. in the
banks Of New York, ever since Mir. Car
isle announced. in April 1898,
that the South and West needed an OBJ
ject-lessou IN finance.
The result Of the late bond sale shows
that the people. Wall Street. and the
New York banks have recovered conf
dence IN Themselves In the Treasury, and
In the Government
Firth. Tho peoples representatives.
who were elected with the frce-coinage
issue squarely before them. have. by tho
magnificent majority OF two and a half
TO one, pronounced, decisiyeiy. adviscdly.
and after fun consideration. against TINS
frec-coindge delusion. Europe sees that
We no longer rely on her for help. that
We are able 10 help ourselves that We
have. IN the most splendid manner, DEM
Onstrated our confidence in ourselves. in
our currency, ana in our Government
bonds.
Naturally. she says. If you have con
hdence. 81 the New York banks and the
great capitalists Of your country have
confidence. we also must have confidence
that gold payments will be maintained.
AS evidence OF this. Il Is well known that
London has been buying our securities
ever since the grand success OF the bond
issue became known and thoroughly I'M
derstood. Here is telegram received
here to-day from the great banking
house Of l.adenburg. Thalman q co.
who are partners of the Bleichroder bank
iEg-house. In Berlin:
The new Government As sold al IFS
and further advance In their price is
considered not unlikely The speculation
in the new bonds IS based upon an inn
preston that no further bond issues viii
he needed during the remainder OF the
term OF office OF the present Administra-
ton. IL is argued that the tendency OF
Europe 10 purchase stocks here implies
a cessation Of the drain on the Treasury
gold reserve. and that the recent events
at Washington have SATISFIED foreign in
yes.--- md indigo .hAf thu limited