New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-03-21
STRENGTHENING THE COUNTRY.

MANY people fail 10 understand how the flood
of gold coming from Europe can help the Treas
ury or else attribute 70 il an influence which
II does not possess. When gold WAS drawn out
OF the country early in Clcveand's Admn!stra-
ton to pay for American securities returned
from abroad it was primarily taken from banks
whose depositors were buying the securities.
Then the bankers, when they wished 10 fOrtfy
themselves drew gold from the Treasury for
legal tenders If that had been all, legal ten
ders might have accumulated IN the Treasury
so that the operation would soon have been
stopped Instead there was great deficit OF
revenue. so that the Government was obliged
10 pay out for its expenses the money received
and 10 borrow more Now the situation is re-
versed The money comes over TO pay for food
and other products which have been sent
abroad but when II goes INTO the banks they
presently want more notes and less gold, and
thus il Is used in paying taxes or turned over
10 the Treasury or 10 officials in exchange for
notes Further. when il reaches the Treasury
il IS not drawn out az once TO meet ordinary
expenditures though II a foreign difficulty
should become serious part would go out
through disbursement Of the emergency fund
u has been shown in Washington dispatches
that payments of gold interest into the custom
houses and in less degree into other Govern
rnent Offices where taxes are received, have much
increased Of late. Gold is less convenient than
good paper, not merely 10 the individual, but
beyond certain limits 10 the bankers and those
engaged in large business In times Of panic
and grave distrust the people have boarded
more Of Il; and from such boards over $780,
100000 emcraCi within a short time after Re-
publican victory made the future secure. But
IN ordinary conditions ii has not been found
practicable TO get the people 10 hold or carry
more than limited amount Of gold in place Of
Daper If more comes into the markets than
Is wanted payments in gold through the Treas
ury increase and there Is no limit 10 the amount
which can thus be turned into the Treasury in
place of notes except the amount of taxes col
lected
Probably large share Of the gold received
this year from Europe will go 10 fortify the
Treasury reserve. When the Treasury is not
distrusted the amount of gold carried elsewhere
docs not tend to increase, and with President
Mckinley and Secretary Gage in charge there
seems 10 be little reason to suppose that even
foreign war would produce any dstrust Of
the sovency or deliberate purpose Of the Gov
eminent A prolonged struggle against an
equal or superior Power might be another mat
ter, but the only sort Of foreign war which is
By any thought possible now could not affect
the ability Of the Government 20 meet all it's
obi CATIONS. II short its expenses would be
met from tho surplus on hand. and If pro-
longed. by loans or special forms Of taxation
IN no way impalring the Nations resources
1t seems likely that the gold reserve of the
Treasury will be increased for some time, there
fore. because even disbursements from the
emergency fund will be made almost wholly
20 Americans the money going into circulation
and into banks again, and thus back 10 the
Treasury and because there appears little rca-
son now to anticipate any considerable excess
Of merchandise imports over exports for con-
siderable time 10 come. From present indica-
tons the extraordinary demand for breadstuffs