The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1896-09-25

to move the crops. taking his reward
sitiOn of our surplus productions Iar
below their intrinsic value.
The gold movement began, and in so
far IS foreign capital has been supplied
through sterling exchange loans and
shipments OF money in the FORM OF gold
has the pressure been lifted from the
mercantile community As fast as the
money pOurs in from abroad 1t goes to
the interior to relieve the banks whose
resources have been strained to the ut
most by the inadequate supply OF
money. Their withdrawal OF balances
from the New York banks has in
propOrtionate degree crippled the local
institutions. When the gold begins to
pour in faster than the needs OF the
interior require, interest rates will be-
gin to fall. but not rapidly until the
cramped mercantile community are sat
isfied.
A great portion Of the wheat, oats and
cotton crops has been moved, but there
still remains the greatest crop of all
the corn crop which is only just ap-
preaching harvest maturity.
Business operations are always con-
tracted during the uncertainties of
presidential campaign and begin to ex-
pand the moment the contest is decid-
ed. There will consequently be an in
creasing demand for money in the mer-
camille and manufacturing community
from the second week In NoVem Der.
The necessity for gold imports will ex-
tend far into the autumn, and perhaps
until the heavy January payments of
coupons and dividends abroad turn the
scale Of exchange against this country.
There will be a lulI in the gold imports
for periods, but without an unforeseen
change in conditions, the magnitude of
the gold impOrtatiOns will exceed any
thing ever experienced in this country
One clean result of the situation is
patent. Whichever party is successful
in the election, some measure must be
rnwaN
of the country automatically. The eX-
listing national bank note system has
proved a failure to supply the urgent
needs of the country in the crisis that
has confronted it. Bankers themselves
admit this. but claim that If certain
features of the system are amended
prevailing difficulties will be overcome
The success of the gold party will not
in any way change conditions
The foreign money loaned to this
country to move crops Will be with
drawn as soon as that pressing need is
over, and next spring the export of
gold will be resumed with all Its dis
tressing accOmpanimentS of bond issues
and business disturbance. Until the
sap in the money supply is permanent
~ filled the nation viii be jumping, not
from the frying pan into the fire, but
from one fire into another, each time
more destructive. The people realize
vaguely but consciously that there is
a dearth of money in circulation, and
victory of the gold party in November
viii settle the battle over the currency
question is as puerile as its inconsistent
theories regarding the gold movements
of the past five years have been alb
surd
The relief from the gold imports is
only temporary, and would have been
impossible in the preceding four years,
on account of the arrangement of the
international credits. The Belmont
Morgan syndicate undertook to stop the
gold exports in 1895, but failed, because
international credits were not restored
to a normal basis. It is no secret that
gold was exported a year ago because
in London had reached the limit of
credit They could no longer supply
bills for remittances abroad to supply
the place of gold, and the extraordinary
anomaly was presented of gold, wheat
and cotton going abroad on the same
steamship in a period when the same
steamships which took out the surplus
crops should have brought back gold
to this country. The BelmOnt-M organ
syndicate operation was the last arti-
fetal action on the part of the most
powerful bankers OF the country to con
troll an unnatural situation, and demon
strated beyond cavil that no enduring
prosperity is possible under the present
currency system
Whatever the result of the NOvember
election, the people will never rest unit
some change in the present currency
system is forced which will permit a
commercial and agricultural nation to
transact its business operations with
out constantly recurring financial dis
turbanceS