El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-09-03
NO GOLD WANTED.
The Government Refuses To Re
ceive Gold In Exchange For
Currency.

II am compelled to refuse your re
quest" replied Col. George "a. Small
the st. Louis assistant United State
tressu'
"What, Refuse to give me currenc
in exchange for gold?" exclaimed tn
banker.
eyes, that's exactly what L mean,
said Col. Small, IN his courteous way
And then he explained to the aston
ished banker that the United State
government now had more gold in it.
treasury than it needed, and therefor,
Uncle Sam was not voluntarily eX
changing currency for gold these pros
porous days.
A few days later another St. LOui
banker entered Col. Small's Office and
wanted to exchange 100000 in golC
for currency in $1,000 notes. Wher
this bankers request was refused, he
too, was astonished, until Col. Small
explained that 'Uncle Sam has more
gold than he needs in his strong box
There is enough sound financial 10
gic hidden behind these two incidents
In Col. Small's office to refute ell the
free silver arguments that have been
made in the past, or that will be made
from now on until the crack of doom, ~
said local republican, when discuss
ing the matter. "These two incidents
are also fine illustration of the wis
domof the protective tariff policy of
the republican party.
"In 1896 President Cleveland, it will
be remembered, saw the gold drifting
away from the treasury and leaving
this country for European shores, and
In order to maintain the old-time gold
reserve of 800, 600, 900 in the treasury
he was compelled to issue 1852, OOO 900
| of United States bonds and dispose of
them TO obtain gold. The democratic
low-tariff measure, know ss the Wilson
bill, was then in effect as law, and lite
direful result was that the balance of
trade was against the United States,
and that took gold out of the country.
At the same time the free silver here
sy sprung up, and, through fear that
| the country would 60 to q silver basis
| and the currency. become deprecated,
| foreign traders demanded still more
gold.
"But the republica party came in
| to power and made the Diugley bill a
law, and at the same time won a grand
victory at the polls for sound money.
The free silver heresy was given q
| crushing defeat. and there is no long
err any grave fear that the currency of
the country will become deprecated.
The country has remained solidly on a
gold basis, and this has now prevented
gold from leaving the country. But
see how republican rule has reversed
conditions under democratic sway by
creating balance Of trade in favor of
Uncle Sam. Under a republican tariff
law the trade of the United States for
the last fiscal year, even including the
war period, shows 81. 200, 900, 900 OF ex-
ports and but half that value of i'm
ports. What mighty balance in our
favor! Enough to pay for whipping
Spain three times over.
- al i
and an enormous balance of trade in
favor OF Uncle Sam, we see gold pour
ing back into this country, add, more,
too, it is remaining here This under
republican rule. The United States
treasury today has more gold in it
than is needed. Under democratic
rule the fiscal officers were bowling for
more gold, in order to maintain the re-
serve in the treasury. These are hard
facts that speak eloquently for the re-
publican party"
After hearing the story of the two
bankers who failed to unload their
gold at the United States subtreasury,
and after noting the argument made
by the republican, q GlObe-Democrat
reporter called on Col. Small to obtain
statistics in regard to the increase of
gold in the United States treasury.
Pulling from his desk the printed
statements sent from Washington, Col.
Small said:
exchange currency for gold is true.
The government has as much gold in
the treasury now as it wants, and the
assistant United States treasurers are
not, therefore, voluntarily exchanging
currency for gold. This increase of
gold in the treasury, together with the
fact that gold is now remaining in this
country, speaks we'll for the policy
OF the sound money advocates. No
body is boarding gold now. The peo-
Die now feel that OUR paper currency is
as good as gold and will be maintained
on gold basis, apd therefore the peo-
pie themselves create the present
demand for currency. Paper money is
more desirable to handle than specie,
and now that the people feel confident
that payer currency will remain on a
solid gold basis, they want to exchange
gold for currency.
Gold is pouring into the treasury
from all directions. Not only is it |
from abroad, but the home
markets of trade are sending it in. The
domestic production of gold from the
mines of the United States, including
Alaska, is estimated to reach 500, 900.
900 this year. This vast amount of gold
bullion will certainly not leave this
country under the present growing
prosperity. The gold bullion is piling
up in the treasury at
Washington in a most satisfactory
way. On April last the gold
bullion in the United States treasury
amounted to 1863, 647, 25S. but Yesterday
it amounted to SlO3. 500. OOO That is
an increase .of over $40, OOO, 900 of gold
bullion in the treasury in five months.
o. at the rate of IS, 900, 900 a month
But gold coin is also piling up in a re-
marksble way in the treasury. On
July ], 1898, the amount of gold coin in
the treasury was S1O4, rs ,284, while on
August /, 1898, it had increased to
sl25, S43, 472. That was an increase of
over S2l 100000 in gold coin during
the month of July this year
But another fact that NAV escape
the masses of the people," continued
Col. Small, lis that the amount of
money in circulation is constantly iu-
cressing, and been has doing 80 for the
past year. The amount of money
of all kinds in circulation
on August l, 1897, was 81 $40, All, 1879:
but on August |, 1898, it was 81, SO9.-
1913 ,344. That is an increase of SI62