The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1896-08-18

tirement of $500 oOO. 900 gold with the ac
Iconpanying panic causing contraction
ana commercial disaster Unparalleled.
We answer that our total stock of golt
other than about $4,000, 900 or SIS, 600
oVo. circulating on the Pacific coast, i.
Already in retirement. Practically al
our gold Is In the United States Treas
1 mrY or held by banks. The gold IN tho
tarv ayails Of his option to redeem
United States notes IN silver, The gold
In the banks constitutes the quiet and
undisturbed portion OF their reserves
aeainst Liabilities. 1t will continue to
90 more duty as such reserves after the
ir"E coinaE. Of silver Is enacted Hence
premium on II will not contract the
currency. The utmost possible contrac-
tion OF the currency will be the few
millions circulating on the Pacific Goa ST
and this will be retired, but slowly.
A similar threat of a flight of gold
was made for the Bland act of 1878.
president Hayes was urged to veto IT.
but Congress passed 1t over the veto.
instead or flight of gold. as had been
predicted. we gained by importation
S4.00e.OOO for the first year. $40. O0O. O0O
the next and $4,000, 600 the third wear.
During the twelve years that the act
was on the statute books we gained
S22l 100000 of foreign gold. Instead of
the destruction of our credit abroad,
as had been predicted the United
States per cent. loan which stood Mt
10l on the day Of the enactment, sold
at 40 per cent. within three years, and
at 100 per cent. subsequently. Instead
of defeating the resumption of specie
payments on January LIST of the follow
ing year. the s2i,000,000 silver dollars.
which were coined in 1878 and circulat-
ed by means of silver certificates, Te-
duced the demand upon the Govern
ment for gold. Hence the threat of dis
aster now is without historic founda-
ton.
This. then. is what will follow the re-
openinE of our minis to silver: The
gold already in the Treasury Will re-
main there and common sense dictates
the Treasury management; that IT,
the Treasurer exercises the option to
redeem United States notes in silver
premium on gold will not occasion a
contraction of the currency. bank
boards of gold continuing to serve as q
norton of bank reserves against bank
liabilities. ~ premium on gold will tend
to Increase our exports by causing
higher rate of foreign exchange, that is
to say. by yielding a larger net return
in dollars on the goods exported. A
premium will tend to diminish our i'm
ports by increasing the cost of bills of
exchange with which to pay for goods
imported The tendency of increasing
our exports and diminishing our i'm
DortS will be to establish q credit ba-
lance of trade for the United States
means that Europe has become our deb
tor and must settle with us in money.
Europe's silver money is over-valued in
her gold. compared with ours, by from
to cents on the dollar. The European
banker or merchant will, therefore,
make his trade settlement with us in
gold. more prolitably by from to
per cent. than in his silver. With the
instant that European trade settle
ments with the United States are in
gold. parity for our gold and silver
money Is established in the markets of
the world. Herewith the 371h grains
of pure silver in our gold dollar are of
exactly equal worth as bullion in New
York