The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-05-20
CONTRACTING THE CURRENCY.

Much stress is laid upon the supposed
necessity of keeping up the gold reserve
in the treasury TO the $100,000,000 STAN
dard by Mr.. Cleveland. He declares
1 that in no other way can the credit of
the country be sustained and the paper
and silver dollar be kept at parity
with gold. But there is another side
to this enormous treasury reserve bnsi-
ness not often thought of, certainly not
dWelt upon. Each successive sale of
bonds is followed by a contraction of
the currency. Only last week the U.
S. treasury was calling for per cent
OF the reserves in the national banks,
to be followed in few days by another
call for S12,OO0,OO0. This call is for
gold, and in being turned into the
treasury will be taken from the total
volume Of money in circulation The
gold called out Of the treasury does
not go into the circulation of this coun-
try but into that Of Europe. Our cur
rency was artifcially contracted by
$4,000. 900 consequent on withdrawing
money from circulation and piling it
up in the treasury. Prices have been
depressed at least per cent, but this
fall in prices has proven not enough.
The sacrifice of business interests re-
sulting from a fall of prices of per
cent within four months has been diSas-
trously great, but the gold standard de-
mands a still lgreater sacrifice. To
maintain it, will necesSitate a further
contraction Of our currency. Indeed
the export Of gold automatically con-
tracts our currency. Greenbacks and
trtasury notes are presented at the
treasury for redemption and the gold
thus obtained exported, and just as
greenbacks and treasury notes are thus
Withdrawn from circulation and piled
upon in the treasury, taking the place
of the gold withdrawn, our currency
must be further contracted and prices
further depressed until the final result
will be again, if our suicidal policy is
not reversed, the exhaustion of our gold
reserve, and our fatuous leaders will
be confronted again with the necessity
of resorting to renewed borrowing to
maintain gold payments.
SO the fourth bond issue to maintain
the gold reserve has proven a dismal,
costly, failure. 1t has failed to bring
prosperity. On the contrary, it has
sunk our producing classes further in
to the slough of dependency. 1t has
failed to prevent gold exports, though
it has shouldered untold losses on our
producing classes. 1t has injured our
producers infinitely, yet all the sacri-
flee entailed upon them in the shape of
depreciation Of property has proven of
no avail to protect the gold reserve.
Finally, it has reduced the customs
revenues, and resulted in making an
inroad on the cash in the treasury to
meet a growing deficit without check
ing the drain on the gold reserve for
redemption of greenbacks and treasury
notes.
The policy Of contraction. by issuing
bonds and thus Withdrawing money
from circulation and piling it up in the
treasury, has been tried and found
wanting. Yet, if We adhere 10 the
policy of gold-monometallism we will
soon be called upon to repeat the costly
blunder. Persistency in following our
present path must lead 10 the ultimate
bankruptcy Of the nation as well as TO
the universal bankruptcy aud ultimate |
enslaving of our producing classes to
the money cliques. The only path 10 |
safety lies in returning TO bimetallism.