The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-05-01
A RUSH OF EXPLANATIONS.

We have read with absorbing inter
est some scores of comments in our Re-
publican contemporaries during the
last ten days, all vigorously and vol
uminously and Historically explaining
just why it is that there IS and must be
and ought to be an export of gold from
this country at the present time. These
same authorities were pounding away
there could never be an export of gold
We're it not for a Democratic admins
tration and free trade" We suppose
that it has been said some millions
Republican, that the depletion Of the
gold reserve under Mr.. Cleveland was
the work of the tariff. We haYe been
told with great emphasis that. II we
had a sufficient revenue, net, If only We
had a Republican administration in
power, so that the people could be sure
of a high tariff, then the greanbacks
could give us no possible trouble, and
the gold reserve would go on booming.
Things are different somehow. All Re-
publican papers are now painfully la
boring with the renewed export Of gold,
which they inform us is quite usual
at this time Of year. Our esteemed
contemporary, the Minneapolis Trib-
une, repeats the story that seems to
have been agreed upon in Republican
official circles, to the effect that 'the
outflow of the yellow metal is due SOLE
ly to the demand for it created by Aus
tria and Japan to maintain the sold
standard. The metal is drawn from
the United States because we have an
abundance of it,"
This, like most Republican explana-
tons of financial affairs, is pure
myth. 1t is not only myth, but some
thing less creditable than that, because
the firms in New York which engage
gold for export stated explicitly that
it was not taken for Japan or Austria.
but was required for settling exchang-
es in the ordinary course Of business.
Nor is there any magic about the
transaction. 1t is perfectly plain and
simple on its face. The presenta ton
OF the Dfngley bill, with it's immense
increase of rates, caused rush of buy
ing by importers in this country. They
have laid in very large stocks of goods
purchased abroad. They know that
these are not likely to be bought lower;
while, as soon as the new tariff is in
effect, they will go much higher, not
withstanding the familiar pretense that
the foreigner pays the tax" So orders
aggregating many millions Of dollars
have been placed abroad, and the goods
are being shipped to this country as
rapidly as possible These purchases
have to be paid for, and are paid fer
with bills on New York. To meet this
excess Of New York bills over London
bills and restore the balance of the ex-
change gold is being exported. The
movement is a direct effect Of the LASS
age Of the Dingley bill by the house.
OF course, this influence is somewhat
temporary. We would not advise our
contemporaries, however, to congratu-
late themselves too much, or to take
refuge behind the imaginary safeguard
of large gold reserve and plenty of
money in the banks. Says the Tribune:
"These reserves are ample to withstand
a continuous drain of considerable mag
nitude; but no one familiar with the
situation can see how such drain is
to be maintained under existing condi-
tons" Unless all experience is at
fault and the laws of trade are going
Ito be turned upside down for the bene-
fit Of the Dingleyites, one can see a
very considerable menace ahead. and
the fair prospect that these conditions
will be maintained. This adninistra-
ton Is going to suffer the embarrass-
ments of it's predecessors. If the Ding
ley bill passes in anything like it's
original form, 1t will cut down revenue
heavily. That was the effect, as it was
the avowed purpose, of the Mckinley
bill. 1t raised rates in order to reduce