The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-01-27

time The low prices we are able to give
him, but not the long time. Hence our fall
ure to advance our foreign trade as rapidly
as we might.
Throughout the world. and especially in
countries subject to political disturbance,
the possessors of wealth, making provision
for the evil day that may wreck their for
tunes. are accustomed to transmit to de-
postories in foreign lands money and valu-
s.bleS for investment and safe-keeping. Prl-
dence dictates that the country In which
they propose to store their reserve should
be one undisturbed by political. social or
financial volcanoes. But, though the world
as a market is at the command of our mer-
chants and manufacturers, one thing him
ders from taking full possession. We
lack surplus capital of our own sufficient for
the long credits required by foreign buyers.
Other peoples money is in part. the secret
of England's commercial strength, but we
cannot employ other peoples money be-
cause in the estimation of those other peo-
ple,' we are not thoroughly safe deposit
tories, and their lack of confidence handi-
caps us in the race for trade in the neu-
trail markets.
owing to progress in the arts connected
with mining, silver is no longer good mon
ey. The annual product of silver has so
increased that it cannot be maintained on
a parity with gold. Many nations have at
tempted to maintain the old equality of the
two metals, but have succeeded in giving
currency to their silver coinage only as
token or fiat money Through this period
OF depreciation in silver England has stood
firm. OF all European countries she pos
sesses the most stable government. and for
nearly a century has maintained the gold
standard. Hence no apprehension is felt
that she will make silver tokens full legal
tender money, and over all the world those
who want security make England their
chief place of deposit and their savings
bank. Thus England gains capital where
with to give long credit
"England's export trade in manufactured
goods varies from $500, OOOO to $l00O, UOO
a year; that of the United States is less
than $500, 600 900. OF the goods exported by
England the greater part is sold on credit,
aud in important measure it IS the capital
deposited by the citizens of fol eign coun-
tries that makes so vast a credit system
possible. Hundreds of millions of dollars of
this deposited money are advaEC ed by the
English banks to English merchants
against the expected returns from CONNER
cial transactions with foreign countries,
with profit to themselves and to the bor-
rowers.
why are such deposits not made in the
United States instead of England? Our
government is stable no mutterings of rev.
olution are heard; our financial institutions
are sound and strong; here are the very
conditions demanded by the timid capitalist
living in lands subject to civic CON motions.
A few years ago there was tendency of
foreign deposits toward New York and the
American commercial metropolis for a
while seemed in a fair way to become Lon
don's rival as a financial center But with
the beginning of silver legislation this ten
dency received a check; as further laws
were enacted for the rehabilitation of sill
yer, its purchase in large quantities and it's
coinage at fictitious value disocation of
business ensued depositors were alarmed,
deposits were withdrawn. American invest
ments were unloaded and financial crisis
capped the misfortune.
THE political agitation for free silver
was not silenced by such a direful result.
1t still continues, and by it's activity keeps
alive a general foreign distrust of Ameri-
can finance. The effects of this distrust are
felt throughout our economic system.
Though the decreased value and volume of
our exports of breadstuffs and crude prod
ucts render it supremacy important that
for those raw materials manufactured
goods should be substituted; and though,
unless foreign market is found for the
output of our manufacturing establish
nents, men, mills, factories and machinery
must be idle six months in the year Ga half
years product being sufficient fer twelve
months supply of the needs of the home
markell, nevertheless the road of access
to that foreign market is obstructed and
barred by our own acts-by unwise legisla-
ton and by a popular agitation for vision
airy financial policies. In the meantime the
workman is kept poor and his occupation
precarious, and this country is prevented
from taking its rightfu place as the great
est exporting nation. A scientific reform in
the currency is not only a necessity of our
domestic commerce. but is still more i'm
portant to our export trade