The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1896-09-27

the effect Of free coinage OF silver upon
bringing foreign silver into this country
lie says, IL this foreign silver IL brough.
here and coined. Will not those who bring
4; here buy goods with IL. or invest it. and
thus help the country by dealing with us
raore largely, and thus putting more
money into circulation?
The manner In which the surplus silver
OF the world would flow into this country
and displace our gold. under free coinage.
would De as follows: Whenever the bal
ance OF trade was against this country.
and It became necessary for us TO settle
the balances due our foreign creditors IN
gold standard countries. we would be
obliged TO export go.. for that purpose.
for they would not receive oAr silver.
When the balance Of trade was in our
favor. however. our foreign debtors would
ship In silver and settle their balances
with the cheaper metal, which would be a
legal tender in this country. At present
balances both ways are settled IN gold
Amy reader of the daily newspapers Is IA
miliar with the process. There VIII be
quite period of time during which there
are steady shipments OF gold abroad. This
gold goes 10 pay the balances due on the
transactions. involving the side
the exports OF products of the United
States. and on the other side the imports
OF products Of other countries. 1t also
represents the withdrawal OF investments
from the United States. the payment of
interest or profits on foreign investments
in this country. and lastly. no inconsider-
able item. 10y the way. the money spent
abroad by American tourists
When the stream Of geld flows from Eu-
rope this way. it largely indicates that we
have sold more abroad than we have pur-
chased there. or else that further Euro
pean capital Is seeking this country for
investment.
There is no fixed annual settling time
when these balances are finally adjusted.
but settlements occur with greater or less
regularity during all OF the year Thus.
Immediately after the surplus OF our great
food products has been sold abroad, there
is generally a marked movement OF gold
In this direction. and at the time when
our imports OF foreign goods are the heav-
lest. or when European capitalists, for
any reason, become alarmed and with
draw their investments from this country,
then the stream Of gold flows toward
Europe.
Some years the balance has been IN our
favor and some years against us For ex-
ample, during the years 1857 and lsSs this
country imported upwards of SIS. 600
more OF gold than Il exported. In 1892 il
exported more than IL imported by the rel
ativeiy small amount OF sis5.s73. In the
present year. for the ten months ending
April 80. the last date for which statistics
are at hand. the net export of gold from
this country has been SIS. ss9, 100.
Under free coinage Of silver the now OF
gold would be entirely one way There
would be no counter. current The gold
would 40 out 20 pay for what we import
from geld standard countries while silver
alone would flow in to pay for what we ex-
port. The value OF the imports into the
United States for the year 1925. exclusive
OF precious metals. was s13l. 800 96J. OF
which amount. I'm round numbers. sig. oo0,-
60 comes from the gold standard coun-
tries. and consequently will have 10 be
paid for by this country in gold coin.
II any Populist inquiries what will be-
come OF all the gold I'm the country under
free coinage these figures will tell him
II VIII all go in a little over one year 10
pay for what we buy abroad. and in pay
spar fs int .fnA A1fA
abroad. This would quickly dispose of
the present stock on hand. As the annual
production OF the geld mines OF the United
States is In the neighborhood Of $ieo. ooo ooo.
II will he seen that this VIII be less than
half enough 20 pay for what we buy annu-
ally from gold standard countries. and the
resulting balance will have TO be made up
by selling our silver Tor gold at its COM
merciai ratio
The total exports % the United States
average $50. SIS les. all OF which under FREQ
coinage and an unlimited legal tender ca
pael;y ror silver could be paid FOR In sill
yer This fact IS what win make this
country. under free coinage. a dumping
ground for all the surplus silver 81 the
world
I; VIII not b necessary, as the Populists
assert. for the nations of the world 20 buy
any more from Us than they do at pres
eut The existing trade % this country Is
sufficient 70 accomplish that result. when
va have 70 pay our foreign creditors in
gold. and they. under oar Own laws, are
entitled TO pay us in silver.