The herald., 1897-05-10
REVIVAL OF GOLD EXPORTA-
TON


Since the last bond sale there have not
been shipments Of gold to Europe to
such an extent as to attract very much
attention until recently. Within the
last few days considerable sums have
been exported, and the prospects are
that the outflow will be large and con-
tinuous in the near future. This ere
ates anxiety on the part OF the govern
ment, and even disturbs the habitues of
Wall street.
Gold has become 80 potential during
the last few years in consequence of the
diminished use Of silver, that all the
great nations of Europe are putting
forth the utmost efforts to accumulate
it, for the nation which gains the largest
stock of gold has the greatest advantage
in international commerce and in war,
should it occur. Ability to control gold
has become the basis of both national
and individual credit. Securities Of a
country deficient in gold resources are
discredited, and the depletion Of our own
stock is what especially alarms Wall
street, and leads to the fear that the
government will be embarrassed in
meeting its gold obligations.
The late administration was greatly
embarrassed in this respect, and in part
through the failure of our revenue laws
to yield sufficient money to defray the
expenses Of the government. Mr.: Cleve-
land had the courage to sell bonds to
meet emergencies. and, ae the country
is hostile to that method, his administra-
ton was more completely wrecked in
popular estimation than any other dur
ing the whole history of the nation. One
immediate cause of the revival Of gold
expectation is unusual importation of
foreign goods in anticipation Of the
enactment Of tariff law imposing high
er duties and decreasing the free list.
The gold obligations of the government
and Of corporations to foreign creditors
are large, and though for a time after
the new tariff bill is enacted importa-
tions will be comparatively small, yet
&c are Win dHOluGI SOQTCG
of depletion which it is predicted will
be greater than it has ever been. 1t is
estimated that larger number of Amer
leans than ever before will visit Europe
for travel and sojournment, and that
they will expend not less than 100000
900 during the next six or eight months.
Mr.. Mckinley is more sensitive than
Mr.. Cleveland to the influence Of pub
hesitate long before he will resort to his
predecessors method Of meeting emer-
gencies. He is struggling to avert en-
barrassment to the Treasury, resulting
changes in the laws that will assure ade-
quate means to defray government ex-
pensee, and avoid adverse balances of
trade through diminished importations
of foreign merchandise. The imposi-
ton of higher duties may or may not in
crease revenues, for no intelligent man
is oblivious to the factthatrevenue may
be diminished as well by increasing as
by decreasing duties, for the one re-
strains and the other stimulates impor-
tations. If, as is maintained by Mr..
Mckinley and his followers, the chief
ends to be attained in tariff legislation
are to protect our markets against for
eign monopoly, and to stimulate the en-
largement and diversif1cation of domes-
tic industries, and those objects are ac-
complished, the result will be the larger
production at home and less demand for
foreign products to supply home con-
sumption, and consequently diminished
imports and revenue. 1t is at least
doubtful whether a high tariff will pro-
tect the country against depletion of our
gold resources. With the existing large
Indebtedness of our government and
corporations to foreigners, and the ex-
penditure of large sums by our people in
foreign travel, it will not be easy to pre-
serve our stock of gold from diminution
under the most favorable conditions.
But this is by no means the worst of it.
BY making the single international
standard of value the standard in do
me@tic transactions it nece ssarily limits
our circulating medium to a volume
which can be made good by gold re-
G'emption, and hence the ability to re-