Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-10-05
How Silver Would Come In.
Seattle Observation-Disclosures

A correspondent writes to inquire as to
the effect of free coinage of silver upon
bringing foreign silver into this country.
He says, if this foreign silver is brought
here and coined. will not those who bring
1t here buy goods with it. or invest it.
and thus help the country by dealing
with us more largely, and thus putting
more money into circulation?
The manner in which the surplus sill
Yer of the world would flow into this,
country and displace our gold under free
the balance of trade was against this
country. and 1t became necessary for us
to settle the balances due our foreign
creditors In gold standard countries. we
would be obliged to export gold for that
purpose. for they would not receive our
silver When the balance of trade was in
would ship in silver and settle their bal
ances with the cheaper metal. which
would be n legal tender in this country
At present balances both ways are settled
in gold. Any reader of the daily news
papers is familiar with the process. There
VIII be quite period of time during
which there are steady shipments OF gold
abroad. This gold goes to pay the bal
anccs due on the transactions involving
on the one side the exports of products
OF the United States. and on the other
countries IT also represents the with
drawal of Investments from the United
States. the payment of interest or profits
on foreign investments in this country.
and lastly, no inconsiderable item by the
way, the money spent abroad by Aneri-
can tourists.
When the stream of gold flows from
Europe this way. it largely indicates that
we have sold more abroad than we have,
purchased there. or else that further F.u-
ropean capital is seeking this country for
investment.
There is no fixed annual settling time
when these balances are finally adjustcd
but settlements occur with greater or less
regularity during all of the wear Thus
immediately after yr11l Of
great food products has been sold abroad
there is generally marked movement of
gold IN TINS direction, and at the time
when our imports of foreign goods are
the heaviest or when European capital
lists. for any reason. become alarmed and
withdraw their Investments from this
country. then the stream of gold flows
toward Europe.
Some years the balance has been in
our favor and some years against us,
lSSS this country imported upwards Of
s.. COG. 900 more of gold than it exported
IN 1892 it exported more than it importe ed
6y the relatively small amount of siaI.-
~. In the present year. for the ten
months ending April 80 the last date for
which statistics are Mt hand the net ex-
20 port It, Of gold from this country has been
Under free coinage of silver the flow OF
gold would be entirely one way. There
would be no counter current. The gold
would go out to pay for what we import
from gold standard countries. while sill
yer alone would flow in to pay for what
we export. The value of the imports into
the United States for the year 1895. ex-
elusive of precious metals. was s131 $50 96.55.
OF which amount. in round numbers S427-
ooo.WO comes from the gold standard
countries. and consequently will have to
be paid for by this country in gold coin
If any Populist inquiries what will be
come OF all the gold in the country un-
der free coinage. these figures will tell
him. 1t will all go in little over one
year to pay. for what we buy abroad and
held abroad This would quickly dis
pose of the present stock on hand. AS
the annual production of the gold mines
or the United States is in the neighhor-