Daily capital journal. (Salem, Or.) 1896-1899, 1896-08-05
'THE COLD RESERVE
How the Bankers Gamble
With 1t.
COMING TO THE RESCUE
Offering Up Their Gold to the
Treasury.
COMING TO THE RESCUE

alarmed; business men were alarmed;
the treasury officials were alarmed;
the bankers we're alarmed; every body
was alarmed. Uncertainty and dis
trust preyaded the business atmos-
phere: "fear OF silver legislation"
stalked abroad In the land; and the
bankers, merely for their own prOtec-
tion, exchanged their legal tenders
for gold at the subtreasury just as
fast as they could get hold of the legal
tenders. The only way to help the
situation and avert untold desolation
and panic was by another issue Of
bonds: the only way to sell bonds was
by secret contract with the bankers
syndicate: aud the only way to induce
the bankers syndicate TO take hold OF
the matter was by allowing them to
take the bonds at figures at least ten
per cent below the market, so as To
leave them Il nice little profit for
''coming to the rescue" We all re-
member how II was.
But what a contrast now. In spite
OF the fact that the silver craze has
assumed unexampled proportiOns('un-
exampled" IL good word see any
gold bug speech, and there Is ten
times as much prospect now OF silver
legislation as there was then, and
other alarming symptom has been
intensihed-in spite Of all this, the
reserve falls below the 80 100000
mark without causing the slightest
uneasiness. The treasury officials
haven't the least fear that another
issue OF bonds will be necessary ito
sustain the credit OF the government,
and as for Mr.. Cleveland, why, not a
wave OF trouble rolls across his peace
ful breast. The bankers, who were so
afraid OF silver when there was little
apparent danger, have now not "A
shade OF distrust. They turn their
gold into the treasury, and take legal
tenders In exchange, and don't charge
Uncle Sam "A cent. Everything Is as
serene as a summer morning. The
reserve, which fell To 10000, 900, has
been replenished 10y these nice, patrl-
otic and phllanthropical gentlemen,
the bankers, until now IL stands at
over Sll0, 900, 900, and the beauty of IL
all is-that there is mo charge" The
bankers do this purely out OF the good
ness OF their hearts, TO save the gov
ernment from any possible embarass-
ment. How nice!
At the same time other kind old
gentlemen came forward, and, In
company with some OF those already
mentioned, enter into n combination
TO prevent the expectation Of gold.
Foreign and domestic bankers have
signed an agreement, whereby bills OF
exchange will be issued and the
foreign bankers, on whom they are
drawn, will pay them aud wait fortheir
gold for 100 days, or longer" This,
you see, will Obviate the neces-
sity of shipping any gold until after
the election. IL is a little varla-
tlon OF the Oregonian's plan OF pay
ing foreign balances by raising the
rate Of exchange" and IL will be
about as effectual In preventing the
eventual expectation OF the gold, Is
II possible that the people are such
slmpletons that they will not ln-
stantly see through this silly subter-
fugeY DO we not know that IL Is
simply 10 postpone the shipment OF
this gold until after election, and IL
will then go just the sameY There is
no great attempt 10 disguise the
former fact
"Now llsten,n When w. IL. Har-
vey, in Coins Financial School,
warned his readers that they might
expect TO see the expectation OF gold
stopped, at any time, by just such
methods, for political effect, he was
brayed at by every golden donkey In
the land, That statement was made
the text OF whole columns OF dlsserta-
tions on the yagarles of n mind dis
ceased. But isn't that one silver
fanatical prophecy which has come
literally and circumstantially trueY
How does IL compare, AS prophecy,
with the goldlte promise that the re-
peal Of the Sherman law would start
all the wheels OF Industry To reyoly-
ing inside OF 80 daysY We can now
see how much easier it is TO foretell
future events with some degree OF
accuracy when our conclusions are
drawn from correct premises.
But nothing could be palmer than
the object OF this double move OF the
haukerA Another Issue OF bonds