The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1896-01-09
WORKING FOR EUROPE.
That Seems to BE the Condition to Which
This Country Has Been Driven.

That Seems to Be the Condition to Which
This Country Has Been Driven.
We had little bit of political econo-
my in our recent Washington dis
patches, credited to some unnamed of
fetal of the treasury department. In
explaining the heavy Withdrawals of
gold he said that money, like every
thing else, seeks the best market, and
that market at present is in Europe.
In further eiucidation of this point he
explained that money was worth more
there than in the United States at the
present moment, because of the break
in Kafir stocks, which had created
large and immediate demand for gold,
and in order to get this gold foreign
holders of American securities were
forced to sell. They were thrown back
on the American market and our gold
Withdrawn. But there is sonnet thing in
this statement more than the simple
law that money always goes To the
best market There is the fact that
every sudden and extraordinary de-
mand for gold in Europe makes its
heaviest draft in the United States.
This country is the great debtor
country of the whole world.
Its whole Industrial system is
bottomed upon securities held
in Europe, and this indebtedness is in
creasing every year. New debts are
created for new enterprises and accu-
mulating interest is funded into new
bonds These securities are praeti-
cally sight drafts upon our gold supply.
With the first breath of a panic in
Europe they begin to flow back upon
us and draw off our gold. What is
happening now happened after the
Argentine collapse, after the Aus
tralian bank failures, and it happened
when Austria Hungary went to the
gold standard and began to accumu-
late gold reserve. The reasons then
were even more obvious than now,
though it suited the purpose of certain
people to lay the whole blame on the
Sherman law and ignore great finan-
cial collapse that shook the business
world like an earthquake, as though it
had never occurred Now that this
supposed cause of all our woes has
been removed the outflow of gold goes
on and other causes must be as
signed. The treasury department
now gives the true reason 1t
is not due to any distrust of
our currency, but simply to an indie
pendent foreign demand for gold and
the ability European countries possess
by reason of their control of our Sc
curities to throw off their troubles on
our shoulders. This condition will eX-
ist under any monetary system. We
may wipe out all the legal tender notes
and relieve the treasury of any obliga-
tion to maintain the par of all our cur
rency, but the ''endless chain" will be
as effective in the form of American
private securities as in the form of
legal tender notes. The country must
always DO prepared to meet drafts
upon its gold and whether the gold
comes from the banks and is drawn di-
rect from the channels of trade or
from the treasury, it makes mighty
little difference to the country. There
is this feature of the situation also to
be remarked: Heretofore, when for
eign countries raided our gold, we had
something else to fill the gap in our
currency Now we have nothing
The gold mines of the country do not
add one dollar to our circulation.
They are worked for the sole benefit
of Europe. Memphis Commercials
peal.