The Dalles daily chronicle. [volume] (The Dalles, Or.) 1890-1948, 1897-12-07
DELAY IN cURRENcY REFoRM


The advocates of the program Of
delay in currency reform would dc
we'll to consider certain facts which
suggest that all may not be clear
sailing for the national finances, even
now when business prosperity is evi-
dent. 1t is by no means too soon to
prepare for that stress of weather
which brings into unpleasant relief
the evils of our currency system.
With $156, 100000 of free gold, ac
cording to the latest figures at hand,
IN the treasury, and with the inter
national trade balance strongly in
our favor, the United States may
feel a sense of monetary security.
But there are certain features of the
situation which, if looked at conserv-
atively, will suggest that no assur-
ance may be had that fresh strain
may not be put upon our financial
fabric earlier than has been gener-
ally expected.
The So called struggle for gold,
which has been a pronounced char
acterlstic of recent times, is by no
means over. Nearly every cable re.
ceived in banking circles of late, ac-
cording to a recent statement in
leading financial journal has spoken
of the strong demand IN London for
gold for the continent. The state
ment goes on to say that the demand
is traceable, in large measure, to the
continued accumulations of the vel.
low metal by Russia. The reorgani-
zatlon of that country's currency on
gold basis and the extensive trade
expansion expected by the Russian
government as a consequence of its
acquisitions in China and the COM
pletlon of the great railway across
Siberia, may partly explain the need
of the Muscovites to increase their
stock of bullion. But the magnitude
and persistence of the drian through
Berlin to St. Petersburg suggests even
more than this-it has an ominous
sign of the gathering of war chest
in anticipation of the next dreadful
clash OF arms in Europe or Asia.
And, naturally, part of the accum-
ula,ions of any military fund must
be withheld, even in time of peace,
from commercial availability.
The Austrian government has not
yet acquired all the gold requisite to
the execution of currency reform in
the dual monarchy. The critical
state of the controversies between
Austria and Hungary holds out a
danger-signal of possible collapse
on the Vienna Bourse, which would
lead to a great demand for money,
and high interest rates would hurry
gold to that center. Now, in pres
ent conditions, any continental de-
mand for the precious metal must
pull strongest on the purse strings
of Great Britain. AS London wishes
to keep enough gold to render the
British financial and commercial po-
sition secure, where could that CITY
turn for gold IN an emergency ex-
cept to the United States? The
supplies now pouring into London
from South African and Australian
mines are promptly absorbed by the
Bank of England or the open mar
ket.
It is true that this country is bet
ter buttressed against foreign call
for gold than it has been in years.
Allowing for all deductions of items
IN the International trade balance
which are averse to us-such as
freight moneys, undervaluations
shipments from abroad of American
securities, etc. conservative author
tiles estimate that on the total ac-
count. of course including merchan-
disc and the years bullion move
ments, Europe must he indebted to