New-York tribune., 1897-10-11
GOLD FROM ENGLAND.

Sundry free-sver journals. which have attrib-
uted to prejudice against silver statements by
The Tribune in regard TO the probable action OF
Great Britain are now at liberty to revise their
opinions 1t does not matter what motive is
ascrbed to the British Government. The thing
Of consequence is the decision Of the Govern
ment regarding the suggestions made by the
United States and France and that decision. II Is
evident. will be unfavorable. 1t may not be en-
tirely an accident that the beginning OF heavy
exports Of gold from England to this country
came Immediately after the announcement Oh
that decision. Since the answer Of Great Britain
was in effect dictated by the Indian Government
and disclosed determination to establish the
gold standard in India II possible. it IS easy 10
see that other countries having claims upon gold
available at London have reason to take 1t into
their own custody without delay How large the
claim Of the United States may be on account OF
the merchandise balances in August and Sep
tember can only be conjcctured but the amount
is probably more than British authorities desire
TO have reported.
II is their affair The United States has not en-
barrassed negotiations by marking out definite
line which other Powers must accept or reject
In substance tins country has only inquired
what effective thing. if any. other Powers are
willing to do In order to aid larger use OF silver
as money. The answer by the Bank Of England
was coupled with conditions which must have
been known to he impossible OF fulflment. and
now the answer of the Indian Government closes
the door against present hope of cooperation in
that quarter. The United States has therefore TO
protect its own interests. and, is fortunately
more able to do so this year than usual It's pro-
ductlon of gold has been much increased by the
Cripple Creek ard other developments: the coun-
try is certain to receive and retain large share
of the gold forwarded from the Klondikc region
il is entering upon period Of progress and PROS
perity which will render capital of other coun-
tries more disposed to buy than TO sell its securi
ties and il has large crops. for which the failure
of crops elsewhere creates an extraordinary for
egn demand.
The British decision is. in effect. that settle
ments with the United States will have TO he
made in gold Only short time ago the acts Of
the Bank of England implied a purpose frankly
acknowledged by one of its directors namely
to force such conditions that American securities
would he returned TO this country in amount
sufficient to pay any balances due on merchan-
disc. The bank has already found itself unable
to carry out that plan. and the heavy shipments
Of gold last week are chiefly interesting because
of the enormous balance which still remains un-
settled. No definite estimate Of that amoun. j.
essential here since competent men on bolh
sides of the ocean agree that The sum must he
large and that it is likely to be increased each
month for some time TO come. II does not now
appear probable that the Bank Of England VIII
be able to prevent settlement Of the rest Of the
sum Just as settlement OF over $4,000 900 was
arranged last week. Putting up the rate of in
terest on money borrowed is not very effective
way of preventing settlements. when the cred
ltor country is prepared to pay n much higher
rate of interest, because Of the greater profits
realized Oh its investments and its business.
1t is obvious enough that in this struggle for
financial independence tho tariff plays n
most important part 1t reduces materially the
value of goods imported. and thus increases the
balance due to this country. II lessons the profits
of some important British industries. and in that
way tends to limit the rate of interest which can
he maintained for money in that country. 1t
renders more prosperous the most important in
dusrics here. and thus tends to raise the rate OF
interes: which money will command in this conn-
try It stimulates development of resources here.
the opening of more mines and the erection Of
more mills which constantly attract foreign cap
ital. BY improving business It renders invest
ments in railways more profitable than similar
investments in other countries. All these changes
tend to increase the quantity of gold which Great
Britain will have to spare in settlement of inter
national accounts so long as that Power rejects
PROPOSALS for monetary accord.