Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-08-18
NO DRAIN OF GOLD
Why the Yellow Metal Will Remain
in This Country.
OUR SECURITIES NOT LIKELYF FOBE SOLD
Effect of the Tariff on the Balance
of Trade.
wHEAT'S UPWARD TENDENCY

1t is felt here that I'm the battle FOR gold,
or more correctly speaking. the battle for
the balance of trade between The United
States and foreign manipulstors. there is
no longer any possibility of the United
States being the loser. The feeling al the
Treasury Department is that the United
States has at last got into a stroHs posi-
tion: that the American securities cannot
be be lten down by any effort on the part
of European bankers. and that this country
can hold its share of the worlds gold sup
ply in spite of any manipulation that may
be INDUCED in. The belief that the unsuc-
cessful attempts which have been mace to
teat down the American market were the
Jesuit of a concerted action Of European
bankers renders the question of our ability
to Withstand such attacks a matter of
great Importance. Little doubt is felt that
European bankers view with some alarm
the growing strength of American securi-
ties and the development of American
trade, which exactly reverses the order OF
things which existed during President
Cleveland's administration. and brings gold
in abundance TO this countrv. instead of
taking IL oat ard weakening the gold re-
serve of the government.
With the certainty of an abundance of
gold in the United States. the silver ulles-
uon shrinks i'm importance and the silver
agitation is discouraged and deprived CT its
the gold standard leaves the United States
in the power Of the foreign h,ders of gold
loses its force when gold is being attracted
here AMI the conditions are such as 10 in
sure its being held.
Encouraging Conditions.
The utmost confidence IN the situation is
felt by the Treasury Department As
sistant Secretary Vanderlip said today that
all the conditions existing were of A char
fn ha
any retrograde movement and TO render
impossible a return to the conditions which
caused universal depression in the United
States during The last administration. The
conditions are such, he says, as TO attract
gold to tnis country and render uni kelly
any raid upon the gold reserve of the treas
ury. Ol the contrary, there being large
volume of gold held by the American banks
and the movement of crops demanding The
Use OF small notes, considerable gold is
likely 10 come into the easurr ard the
trade conditions do not ADMIT of the drain
OF American gold Dy Europe. The tariff
law, while promising abundant revenue for
the government. has already demonstrated
that 1t will reduce importations, and the
necessity of foreign countries, under ex-
listing conditions, gives foreign market
to our products. We can lose gold only
through the balance of trade being AGAINST
us or by the sale Of American securities
by 1oreigh operators. rhe short crops in
Europe ard the restraint upon .mportatious
of the tariff act combined to give US a fa-
Vorable balance of trade, to Increase the
prices of American products and 10 ai-
vance American securities. This condi-
tion tends 10 the importation of gold into
inns country and the restoration Of pros
perity.
American Securities Held Abroad
The importations of gold due TO trad.
conditions cannot he greatly checked by
the sale of American securities for The
reason that there is limited h,lding of
sucn securities in Europe The foreign
holders OF American securities began SELL
lng them Immediately after The Barring
1allure. and since then have pretty Lear
sold themselves out, and there has been
very little effort since 10 float American se-
curltleS abroad. The improved business
hlsher prices ard consequent increase in
lne money volume in this country is stead
lily reducing the necessity for these secur-
lties seeking a foreign market, and the
European ma1ipulators are left practically
without means of drawing :hc gold from
this country or of beating dowa Our market
To the extent that we are commercially in
dependent, are financially independent
OF Europe. Mr.. Nanderlip does not think
that this is a temporary condition. lut
that it Will continue TO improve uRiil the
natural level is reached, and he good con-
ditions will become substantially per-
manent.
The Rise i'm Wheat.
The upward tendency of wheat is imme-
NNis NeS ~ fhS SAott CUPS dbiod'i. dFu
the price may go beyond a point which
be maintained, but the price for some time
past has been abnormally low, and there
is no reason to believe that il is likely to
fall to such low point .sai1. The gem
eral business activity which Is developing
VIII be sufficient 20 maintain prices of
wheat and other commodities at a point
much higher than they have been during
the past few years. The advantages TO this
country coming from an increased revenue
under the Dingley Law, and from the re-
striction of importations through The pre-
tective quality of that law. are necessarily
as permanent the law itself. and while
the great advance in wheat fnay ne ,iue to
a considerable extent to temporary causes,
that is only one of several things which is
bringing about Il revival Of business ac-
tIvity. In other words. M. Nanderlip
thinks tnat we have got the upper nand of
the business situation, ana that there is
every reason TO feel moi only eucnIlacn-