The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-01
THE EXPORT OF GOLD.

The fact that a few millions of gold are
being exported at the present time will af-
ford the advocates of silver recommendation
in this country much satisfaction. Already
they are pointing to it and claiming that
it is due to the fact that there is not gold
enough in the world to make it the basis
of the worlds money, and that the remedy
is free and unlimited coinage of silver by
the United States. The movement of gold is
not an evidence of it's scarcity any more
than is the evidence of the export of sill
yer bullion or wheat an evidence of it's
scarcity. Never was so much silver bullion
exported as during the past three years.
AS for wheat, it's export has little to do
with the stock in this country. During the
past two years the United States has had
short wheat crops, but in few periods of
two years has the aggregate export been
so large as during the past two seasons.
Why does wheat go abroad when the
stock at home is not large? Simply because
wheat is wanted elsewhere so much more
than it is needed at home tina it is profit
able to ship it. The same is true of gold.
The United States has never had so much
gold as at the present time. The treasury
has $155, 900, 600 and banks throughout the
country have large stocks, so that there
never has been a time when this country
could so well spare several millions as now.
on the other hand, there are conditions
abroad which cause a temporary demand
for gold. The possibility of war in Europe
is a sufficient cause to lead governments
and bankers to increase their stocks. Rus
STA and Japan nave been in the London
market purchasing gold. the former as a
part of it's armament in the event of war.
for which it is always prepared, and the
latter preparatory to a change from a sill
yer to a gold basis. 1t is possible that the
recent heavy importations of merchandise
Incident to a higher tariff have had some
thing to do with the outflow of gold, de-
spite the fact that the value of our ex-
ports of merchandise are in excess of our
imports. AS with wheat. there is in Europe
temporarily a more active demand for gold
than there is in this country, and it's ex-
port is caused by the same influences that,
under normal conditions, lead to the ex-
port of wheat and corn. A year ago gold
was going abroad and into hiding places in
this country because of the fear that we
might pass to a silver basis.
The claim that there is not enough gold
for the money basis of the world is an as
sumption which cannot be sustained by the
worlds monetary statistics, as tue follow
ing figures. showing the amount of gold,
silver and uncovered paper money in the
world in 1873 and 1896, shows:
Year. Gold. Silver. paper
1896 ..$3. sos. 1000 $1.732. 300. 900 SIT 900 600
1873 =. ], 209. 800, 900 1,051. 100000 2,322, 500, 900
Incr's -. PASS. 100000 GA, G00.000 *60S, 500, 900
DECREASE.
No other figures than the foregoing.
whicI are those of the best authorities, are
necessary to show reasonable and candid
people that the worlds stock of sound
money is much more ample now than it
was in 1878. In 1878 nearly half of the worlds
stock of money was uncovered paper; in
1896 less than one-fourth of it was of that
quality. In 1873 the worlds coin money was
81. 267, 800. COO; in 1896 it was $5,4S1, 900. 0O0-an
Increase of over 1S5 per cent. in twenty
three years. In 1873 the worlds stock of
gold coin was $1,000, 10000; in 1896 it was
SO. sos. 700, OCEAN increase of over 2O6 per
cent. in twenty-three years. When, in adj
dition TO these unanswerable facts regard
ing the sufficiency of the worlds supply
of gold. it is membered that the worlds
output of gold is averaging more than $780,
OOO,0 900 a year. no person who is capable of
grasping plain facts can be fooled with the