The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-09-23
Danger Height Of
THE GOLD MOVEMENT.

We observe that the Populist orator
IS telling his audiences that the turn
in the movement of gold and the heavy
imports to this country are all part
of the manipulations of the money
power. He assures them that goldbugs
are able to make gold flow in or out at
their pleasure; that they have it COM
pletely cornered; that they sent it
away from the United States, when this
was necessary In order to force bond
sales. and that they are bringing 1t
back again now to make things easier
before election, and prevent free sill
Yer triumph. We have no doubt that
there are some people who believe this:
and to such, as well as to our high
protection theorists, we would COM
ment brief study OF recent trade
reports. The condition of our foreign
exchanges is largely determined by
the relative volume of our imports
and exports. 1t is affected, also. by the
state of the investment market.
Just at the present time so
drawn from investments in this coun-
try-so much Of our own capital
with coin locked up in places of safety.
that a demand for money has been
created which operates on the foreign
money market. and tends to draw for
eign capital in this direction.
But the real force of the gold move
ment Is explained by the reports OF
the treasury bureau of statistics. For
the month Of August the merchandise
exports of this country increased s12.-
672.04S over those for August. 1895
while the imports for the same month
decreased $21, $3.50 Here is an al
most unheard-of change of some s34.-
100000 in the condition of the trade
balance for a single month of the
year Whereas, in August 1895, we
had to settle for $21, 0O0,G GOO worth of
the goods purchased in excess of what
we sold, this year we have over s12.-
oOOO0O balance coming to us. Usually
such a margin is covered by a flow of
capital to this country for investment.
AS foreigners are not investing here
until the silver agitation is settled
we get, this year, the actual cash
This change in the trade movement is
not confined, however, to the month
OF August. The imports of gold are
as steady and as large in amount as
hanoucn
mlnation of a trade condition that
stimulates them.
The condition of the markets
has been favorable to heavy
purchases by other countries in the
United States. We have had a big
surplus of bread stuffs, while the
worlds supplies are short. On the
other hand, circumstances have been
as unfavorable as possible to large
purchases by our people abroad. Dis
tress at home has forced economy
and restricted extensive purchases or
material Therefore, our imports have
been decreased Immensely. Summing
up these effects for eight months,
iicluulng the first three-fourths
OF the year 1895, the United
States imported something over $685.
0ooeo0 Of merchandise more than II
exported. For the same period In the
year 1896 the process was reversed. and
our exports exceeded our imports hv
only little less than S100. eoO. coo.
Here is difference In the trade bal
ance Of s136.ooo, GEO in a comparison Of
eight months OF 1886 with eight months
of 1896. To compensate for such an
extraordinary change in the direction
OF commerce, these imports of specie
are necessary.
While the balance of trade is a mat
ter of consequence to us principally
because OF our patehed-up monetary
system, in which imports and EXPORTS
CT gold are able to shake or establish
credit, the most impressive lesson of
these figures, after all, is their bearing
upon tariff policies and tariff .aeoviesz