The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-07-23

notes in silver. The gold in the banks
constitutes the quiet and undisturbed
portion of their resources against their
liabilities. 1t will continue to do money
duty as such reserves after free coin
age Of silver is enacted. Hence
premium on it will not contract the
currency The utmost possible con-
traction Of the currency.sviIl be the few
millions circulation on the Pacific coast
and this viii be retired but slowly.
A similar threat Of a fight Of gold
was made before the Bland act Of 1878.
President Hayes was urged to veto it,
but congress passed it over the veto.
Instead of a flight OF gold as had been
predicted, we gained by importations
$4,000,000 the first year, $1,000 600 the
next and $4,000, 600 the third year. Dur
ing the twelve years that the act was
on the statute book we gained 1921, Co.,
600 of foreign gold. Instead or the
destruction of our credit abroad as had
been predicted, the United States per
cent loan which stood at 101 on the
day of the enactment, sold at 12O per
cent within three years and at $50 per
cent subsequently. Instead Of defeat-
ing the resumption Of specie payments
on January 1 of the following year the
"A, 00O, 900 silver dollars which were
coined in 1873 and circulated by means
of the silver certificates, reduced the
demand upon the government for gold.
Hence the threat of disaster now is
without historic foundation. This, too,
is what will follow the reopening of our
minis to silver. The gold already in
the treasury will remain there if COM
mon sense dictates the treasury man
agement; that is, if the treasurer ex-
ercises the option to redeem United
States notes in silver. A premium on
gold will not occasion a contraction of
the currency, bank boards of gold con-
tinuing to serve as a. portion Of bank
reserve against bank liabilities. A pre-
MUM on gold will tend to increase our
exports by causing a higher rate of
foreign exchange; that is to say, by
q larger
on the sale of bills of exchange drawn
against goods exported. A premium
Will tend to diminish our imports by
increasing the cost of bills of exchange
with which to pay for goods imported.
The tendency of increasing our ex-
ports and decreasing our imports will
be; First, to set our SpindIeS running,
swell the number of paid operatives,
Increase their wages. thereby adding to
the number and paying capacity Of
consumers, and thus enlarge our home
market for all home products and man
ufactureS, with prosperity IN general as
the result assured The tendency of
increasing our exports and decreasing
our imports will be, second, to establish
a credit balance OF trade for the United
States. A credit balance of trade means
that Europe has become our debtor and
must settle with US in money. Eu-
ropes silver money is over valued in
her gold, compared with ours, by from
to cents on the dollar. The Euro
pean merchant or banker will therefore
make his trade settlements with US in
gold, more probably by from to
per cent than in his silver. With the
instant that European trade settle
ments with the United States are made
in gold. parity for our gold and silver
money is esta blished in the markets Of
the world. Herewith, the 371-24 grains |
of pure silver in our dollar and the 1922
grains of gold in our gold dollar be
comes of exactly equal worth as bull
lion in New York.