The Saint Paul globe., 1897-10-05

The argument that the prices of
wheat and of silver are connected in
separably and vary with each other
has suffered no more from contact
with fact during the last few months
than has the other principal argument
of the free coinage people-namely,
that the world is suffering from
scarcity of gold.'' Last year this
played a very important part in the
campaign. We were told on all sides
that the gold stock of the world was
too scanty to do the business of the
world. Gold had disappeared from
circulation. This, it was said, was
witness of it's inadequacy to perform
the work thrust upon it, and of the
need of an enlargement Of our money
basis. Probably no one argument had
more effect upon the mass of the peo-
pie than this. They did not see or ham
die gold coin; they found the banks,
still under the memory of the panic,
reluctant to pay out gold, and they
heard constantly reports of a dWin-
ding gold reserve at Washington and
continuous exports of the yellow metal
1t was not wonderful that this situa-
tion should convince many intelligent
people that the whole world was united
in a policy of boarding gold, and that
the demand for it would continue to
be more and more troublesome.
The contention of the sound money
people that gold was driven out cf
active use and was being hidden i'll
safety deposit vaults and accumulated
in bank reserves, solely through fear
of a deprecated currency, has been
amply justified by the facts. Nothing
more than an assurance that the golu
standard would be maintained has
been necessary to not merely brins
into sight an ample supply, but to
make it almost a drug in the market
Any man who wants gold today in ex-
change for any other form of currency
can get it, and will receive with it th.,
thanks of the person who pays it out
Several million dollars in gold havo
been shipped from Europe to this
country, and an immense amount Is
sure to follow. Three of the New Yorh
banks have started to pay their clear
ing house balances in gold coin or golG
certificates. This means that it is, fol
the present, to them the least avail .
able form of money in their stock They
ujl1inr nd
rid of it. Still more impressive is the
fact that an offer was made from San
Francisco to the treasury department
to send $1,000,060 in gold in exchange
fer paper currency. When this propo-
Sition was refused, the owners of the
gold offered to pay all the express
charges if they could make the trans
fer. This, also, the treasury declined
because it has gold enough on hand
for all purposes, and ships money from
one part of the country to another
only when it's own interest or safety
requires it,
These facts sufficiently demonstrate
that the scarcity of gold'' is a myth.
OrOiC IL SCetICC W1lSIl pSOplC DSIIeNG lQdl
there is some prospect that it will be-
come mere valuable shortly. In this
it follows the course of every other
commodity. IF a man believes that his
house or his horse will sell for moro
q week or a month hence than he can
get for it today, he refuses to part
with it. The boarding of gold and the
resulting apparent scarcity was due
to a. financial situation that offered at
least a possibility that gold would go
to u premium. When that possibility
disappears, we find not only all the gold
in circulation that anybody wants, bUl
mere than can be used 10 advantage
commercially. The conditions Of the
times are teaching US iIorc lessons,