The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-02-13

on the whole a conservative sheet on
business affairs:
With $685., O0O, 600 bid by 1900 banks or
persons, the tremendous strength of
the national credit is demonstrated as
it has not been before for many years.
The influence of this event upon all
manufacturing and all trade cannot
be lightly estimated. 1t strips the sill
yer agitation of all it's power to hurt.
1t puts the treasury on a safe basis for
the time, whether congress does any
thing useful or not. 1t notifies foreign
nations that the United States have
power as well as purpose. 1t unlocks
millions of gold which have been gath
cred in preparation, brings directly sew
eral millions of gold from Europe, and
stimulates the anxiety of foreign in
vestors to obtain American securities.
This being from a conservative pub
LEGATION. the readers of The Herald will
doubtless be able to form some opin-
ion as to what publications which are
not conservative say.
But look at the facts from another
standpoint. The government asks for
bids for $100,00O,OO0 worth of bonds,
and the bonds are bid for five and
half times over, that is, bids aggre
eating $56S, 900, 900 are made. Suppose
that the bids are genuine, and that
the people have the money on hand
without drawing it from gold already
in the treasury, what does it mean? 1t
means, if 1t means anything, that there
is in this country five hundred and six
ty eight millions of dollars of idle cap
ital, the owners of which are willing
to invest it in government bonds at
the low rate of interest of 31S per cent!
And we would like to know, all things
considered, if that is anything Of which
to be proud? We live in a country
that is new, the resources OF which are
not half developed, and which, from
their extent, variety and richness, have
made the United States the most de-
sfrable country on earth as a field for
the investment of capital. How comes
it, then, that we find such a vast
amount Of idle capital willing to be
tied up in a purchase of government
bonds at So per cent interest, when
we have innumerable factories to erect,
railways to construct, mines to de-
velop, desert lands to reclaim by the
building of reservoirs and canals, and
a thousand and one other enterprises
that might be engaged in and which
ordinarily would yield in a short time
three and four times the income for
capital that this investment in gov
eminent bonds will? Why is not this
vast store of gold invested in indus
tries and other enterprises that would
be by long odds more profitable than
purchasing bonds will be? why? Be
cause we have been doing business so
long on a falling market that owners
OF capital look upon business enter
uncertain. Property has so deprecated
in comparison with gold, and because
of the appreciation of gold, that prop
erty has become undesirable. Gold is
your only ware. Gold is your only
wealth. Don't risk your gold in bust
ness. Don't invest your gold in indus
tries; you may lose it. Run no risks.
gold to the government at three per
cent than invest it in railroads, fac
tories, mines, reservoirs, or stock, and
make eight per cent, twelve per cent,
or twenty per cent. because you run
such great risk of losing all. That is
what the success of the government
loan means. It proclaims a sad con-
dition Of things industrial in the Uni
ted States. 1t says to the world that
fear turks in the hearts of the Ameri-
can people. The bold and enterpris-
ing have suddenly become timorous
as hares. Why? Because enterprise
has become dangerous; investment so
hazardous, that brave as the American
people are by nature, they fear to IN
dertake it; and prefer the safety of
government bonds at a miserable low
rate of interest than to venture into
the field of enterprise and run the
risk of losing all.
This condition arises from the de-
monetization of silver, causing gold to
appreciate that all property has so
apparently sunk in value that produc-
ton of it becomes absolutely unsafe;
and possession of it threatens to be a.
burden. Yet we are asked to rejoice
over the circumstance which throws
this fact upon a screen that it may
be seen and read by all nations! We are
asked to take this evidence of Ameri-
can fear, the peoples lack Of confidence
in industrial enterprises in their coun-
try as cause of joy! It's all very
well to talk of the confidence of Amer
leans in their government; but would
it not be better cause for joy if we
could point to something that would
give evidence of American confidence
in America? In her industries, her
mines, her farms, her railways, the
future of her innumerable business and
industrial enterprises?