Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1896-03-27

which They Will Purchase an
Bonds-Ruim In the W ake of Cole
Standard.
The term popular" as applied tt
the recently negotiated loan is mis-
nomer. 1t was popular only in th'
sense that it was not secret, closed
door performance like the one nego
tiated with the Morgan syndicate
But probably not one person in ter
thousand was in position to offel
gold in exchange for bonds, and hence
its popular" feature was confined
within rather narrow limits.
1t is not. however, our purpose tc
criticise the term applied to the meas
ure, but the measure itself and the
policy which gave it birth.
Just now the gold press is in state
of intense jubilation over the success
of the loan, and great leaders OF
financial thought are falling upon each
others necks and weeping for JOY.
The reason for such an outburst OF
enthusiastic delight is not apparent.
Surely, nobody had any cause to doubt
the ability of the United States govern
ment to borrow $l00,0O0,0OO or 5000
100000 or 81 ,OOO,OOO,OOO if need be.
The only question in any ones mind
was whether the syndicate had the
gold cornered to such an extent that
other bidders would be at disad-
vantage, and as result the Morgan
combination get the entire loan.
The bids show that Morgan & Co.,
did not have all the gold, but at the
same time they fail to demonstrate
that there is anything like 100000
600 OF available gold in the country.
1t must be remembered that a con-
siderable number of bids we're dupli-
Gated, but at different rates. so that if
one were not accepted another might
be-. 1t must also be kept in view that
the gold need only be paid hy INSTALL
ments, and that many OF the bidders
are calculating on getting the gold
from other sources in time to make
payment. Indeed, the dispatches
strongly suggest that a considerable
portion OF it may he taken from the
treasury itself. When gold can be
taken from the treasury as rapidly as
it is paid in, there should be no diff
Guilty about the United States borrow
ing gold.
1t is one OF the marvels OF the age,
though, that ordinarily shrewd business
men can bring themselves to believe
that there is any necessity for the gov
eminent to borrow at all. The United
States is richer by fifteen or twenty
thousand millions of dollars than any
other country it has resources and a
productive capacity about equa! to any
two nations of Europe. and what is
more, it has at all times during the
past two years had supply of legal
tender money in the treasury ample
to meet every lawful demand. And
yet the country has been plunged
$262, 600, 600 more deeply into debt.
Those who have been instrumental
in forcing this action, lay the blame
at the door OF silver. They claim that
so much silver in our currency has
awakened distrust, leading to the
withdraw of gold from the treasury
and its shipment abroad. That claim
amounts to just this:
In 1873 the creditor classes OF
Europe and America entered into a
sympathetic effort to change the
none tary standard that had existed
for centuries, by closing the mints to
silver and making gold the sole stand
ard OF value. Almost Immediately
prices began to fall, to the injury OF
debtors and producers and causing
business stagnation and distress on
both continents. An effort then be-
gan in this country to restore silver.
In 1873 the Bland Bill was passed,
and in 1890 the Sherman law was
enacted. Both werc intended to re-
lieve the people from the awful effects
which must inevitably follow the
complete destruction Of silver as
money. Both did. in fact, give some
relief. The Bland law checked for a
time the ruinous decline of prices, and
the "Sherman law" kept the business
of the country on q steady basis at a
time when the Barring failure was
threatening ruin to the finances OF
gold standard England. But in the
fullness OF time the financial storm
which had formerly swept over Europe
struck the United States, and when il
came the gold champions had the un-
blushing effrontery to lay the whole
blame upon the advocates OF silver
restoration. The fact that business
depression began long before the
Bland law was passed is kept hidden
away in the background. The circum'
stance that between 1873 and 1875
prices had taken a tremendous fall
starting the tide of depression rolling
over every civilized nation, is one that
is enveloped in ignorance. In short
they have been laborins with might