The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-07-27
LETTER OF HENRY cLEWS.
EFFECT OF SILVER ON BUSINESS
HAS REACHED AN ACUTE
STAGE.
SPECTATORS SEIZE ADVANTAGE.
They Have Not Hesitated to Turn
Apprehension Into Danger and
Pound Down Prices.

NEW YORK, July 26-During the
past week, Wall street seems to have
reached the acute stage of the excite
ment connected with the silver issue
to be fought in the approaching cleo
lions. Unquestionably, the situation
is, at the moment, regarded here as
serious. The Chicago convention has
produced a deep impression as to the
earneStness of the South and West in
respect to free coinage. The country
has been taken by surprise also by
the revolutionary sentiment expressed
In the platform. A sharp shock at the
financial center Is nothing more than
might have been expected from such
occurrences. In addition to serious
question Of finance the situation now
includes some political problems new
to our people, exciting in their nature,
and calculated to produce unexpected
disturbances Of confidence.
The first feeling suggested by such
a concurrence of circumstances is one
OF distrust. None of these things had
been anticipated or prepared for; and
as with all 1ll-omened surprises, the
worst features and possibilities of the
case are chiefly or alone considered.
and consequently there Is a general
surrender to degree Of alarm exceed
ing any real occasion. This is the stage
OF this political disturbance through
winch Wall street is now passing. The
attendant unsettled feeling is intensi-
ned by the absence Of definite knowl
edge as to how far the proceedings
OF the Chicago convention represent
the real feeling and sentiments Of the
people Of the West and South. The
intensity of the declarations Of the
platform strikes the people OF. this sec
t1oh as Tie tIs, of a revolutionary pro-
nunclamento; and thrown off their
guard, the hasty and the timid resort
10 defensive measures which only in
crease the public distrust This. how
ever, is not the worst form of artifi-
c1aI aggravation of the situation.
There are professional spectators who
DO not hesitate to turn apprehension
into danger and thereby precipitate
a great fall in prices. Others are at
lacking the position Of the treasury
by exchanging legal tenders for gold
for the purpose of increasing the pub
lie distrust.
These are the kind of elements that
have been brought into play by reck-
less spectators during the past week.
The case was made more serious by
an unexpected increase in the exports
OF gold, under which the treasury
gold balance fell below ninety mil
lions. That fact, together with in
creasing decentralization on the Stock
Exchange. brought the banks to the
rescue. on Monday, informal consul
tat1on among the managers brought
about an agreement to replenish the
declining gold reserve Of the treasury.
and during the week SIS, 755 900 Of gold
coin was pledged for exchange at the
sub-treasury for legal tenders, to be
paid in as needed. This courageous
defensive action was an unmistakable
expression of the confidence of the
banks in the situation and in the abiI-
lty or the government to maintain
gold payments. 1t is also evidence that
the banks are satisfied that the out
come of the elections will be to estab-
l1sh the gold standard upon a perma-
nent basis Some such action by men
pest situated to judge Of the situation
was the one thing needed to HELM
timid and pessimistic holders of in
vestments to hold their own against
their fears; and the course taken by
the banks has materially contributed
to the restoration of public confidence
henceforth be cessation Of hording of
gold. 1t Is that most unworthy form
OF cupidity which seeks to enrich self
at the expense of country At present
there is no danger of gold going to a
premium, except such as may arise
from these very attempts at hording:
for the banks will certainly take care
of the treasury This is one Of the sit
uat1ons in which courage is saving
while fear becomes danger. If there
are any spectators deliberately bent
upon forcing gold to premium. thew
must count upon bucking against the
banks Of New York, Boston, Phila-
delph1a, Chicago, and other large
cities; who know a good many ways
in which such gambling against the
nations credit may be made very un-
profitable.
The true attitude for the moment
is to wait for fuller information upon
the factors that are to determine the
future. At present all is chaotic in the
field of politics. The young GoIiah
large place in the public imagination
that all people of the tinid sort are
beginning to tremble for the cause Of
sound money. The best thing that
timorous class can do, both for them
selves and the country, is to tie them
selves up and keep their tongues still.
until sufficient Is known about the
strength of the opposing forces to form
the basis of an intelligent Judgment
on the outcome. The present estimates
of the probable results of the election
are based largely upon political bluff,
deliberately gotten up by party man
ayers. Upon tine one essential ques-
tion-how far the spirit and letter of
the Chicago platform represent the ma
jority of the West and the South-we
have as yet no trustworthy informa-
ton. Before we can credit the claims
of the Bryanite politicians we must be
prepared to abandon all we have ever
known or believed as to the loyalty
and common sense Of this particular
forty millions Of our citizens. This is
a factor of which we know something;
we have seen 1t subject to generations
Of test, and we have reason for putting
some confidence in it. But when a set
of sensational politicians come forward
with pretensions which call upon us to
abandon all we have ever known about
the people of the West and the South,
1t is simply contrary to all principles
of sound judgment to accept testimony
so full of improbability.
The enactment of a free, Independent
Is to 1 silver law would work out it's
own destruction by the following
means. even Independent of others:
At the present time the Mexican sill
yer dollar brings in this country only
about 81 cents in exchange for
our silver dollar, although it contains
a larger quantity of silver than ours
does. It is simply taken here at it's
commercial value, whereas the United
States silver dollar goes in Mexico in
it's purchasing power for two of their
dollars fc quito evident therefore