The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-04-15
RUNS UPON TIE TREASURY.
The Movement ~ Gold 10 Controlled
20 . Great Extent by the
Money Power.

Some OF the gold standard papers are
ixulting over the fact that no runs are |
now being made upon the treasury, and
they sagely inform us that when there |
is no danger of the money standard be-
ing tempered with the people don'tc care
for the gold. They forget, apparently,
that the headest runs upon the treas
ury took place in the very midst OF Mr..
Ceveland's administration, long before
the Chicago platform declared Tor free
silver, when there was no indication
that it would do so, and when in fact II
looked as II the free silver cause had
received, its death blow. They also for
get that the runs in a great measure
ceased in the summer and fall Of 1896;
when Organism was sweeping like Wild
fire over the country and seemed TO
stand at least an even chance OF win
ming. What do these facts prove? Sim
ply this: That the great fnanciers can
either loot the treasury or stop lootng
II. almost at will. Another bond issue
in the fall Of 1896 would have landed
Mr. Bryan in the presidential chair, and
the Morgan othschild syndicate saw
have done to have another Immediately
after the election, for it would have
belied every campaign promise that the
gold men had made. Shortly thereafter
the heavy exports Of grain and bread
stuffs, turned the balance of trade this
way, and checked the outflow of gold.
Hence there was no occasion for runs
upon the treasury. Nobody wants gold
for internal use. Paper Is almost uni
yersally preferred. 1t is the foreign de-
mand that rakes the treasury. That
foreign demand must be met whether
we have the gold standard or any other.
What that foreign demand may be VIII
always depend upon commercial con-
ditions, subject TO the great ability OF
the money power OF the two continents
tointer-fere with che free flow Of gold by
manipulation of the exchange. But this
Is a thing which will not and cannot be
continued indefinitely. The controlling
factor is primarily the course OF trade.
But loans and other investments Great
ing a condition of Indebtedness sep
arate and apart from that which arises
from the mere buying and selling OF
goods will also have an important bear
ing. II our exports OF merchandise
amount to 500, 100000 more than our
imports, then with all other conditions
equal, 500, 900, 900 in specie would come
10 us in settlement Of the balance. But
IL we had an interest charge OF 500, O0o,-
600 to pay, or if we paid a like sum in
freights, or il American travellers used
the same amount in meeting the ex-
penses OF their journeys--in any OF
these cases the balance due us would
be absorbed and we would get no specie
from other countries, unless IT were
sent here simply for investment Hence
we see that in dealing with the move
ment of specie we cannot confine oul
observations to trade balances alone
If we had no foreign payments to make
except for current purchases OF good
we would have no trouble about our re
serves for either gold or silver, for tn
balances are almost universally ou
, way. But we have heavy charges Z
meet entirely separate and apart from
any matter connected with the mer'
excange OF goods. Our foreign deb
has been variously estimated at iron
$4,000 900, 900 to $4,000 900 900. Very Lit
, lie of this vast sum has been actual.
, sent here for invest ment. The grea
! bulk Of il is the result Of reinvestmen
, in profits which profit themselves iron
the labor of the American people. 3u
The interest upon II has to be paid jus
the same. So do the freight charges an
the expenses Of the American travellers
, The aggregate amount of these can onl
be estimated. but is certainly not les
than $3.50, 900, and tits probably cor
, siderable in excess Of that sum. Durin
, The last year our sale OF goods exceede
; our purchases something like s356,ooo
q 600. And yet the exports and imports
] gold very nearly balance each othe1
, This startling circumstance can be "a
!. counted for in no other way than b
4 reference TO the demands which ~
!, rope holds against us in the shape OF II
:. terest. freiChts and travellers expense
But commercial conditions during n
! last year have been altogether abno
NAL. Our shipments ofwbeat and otht
food products have been extraordinnr
Under average crop conditions nbroa
we cannot reasonably expect balan'
Z" OF more than half what II was last yea
With smaller exports and lower pric
= as the London Financial News says,
!, drain OF gold will begin again. Ru'
: upon the treasury will be sure to folio
- unless the banks furnish the gold =
= export. which they probably will
= do. They will prefer to draw it fro
u the treasury. induce the administrative
=. 20 issue more bonds, and then ascri
~ II to the silver agitation. Az airca'
K stated the great flnanciers can to a co
y siderable extent control the moveme
IS OF gold. They can guard the treasu
u against runs by furnishing from tn
own vaults the gold needed for expo
8, as they did prior to 1893. They can, 10
ir time. check the international moveme
y. OF gold by manipulating the exchan'
n or by not insisting upon the immedii
ELL payments Of their dues. But in tho 10
of run gold Is bound 10 go where the co
l." meycial demand for it Is the strongt
es A tremendous struggle for it is gol
N on all the time, and as the gold stands