New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-17
THE BROAD GOLD BASIS.

need be no surprise that IFS STOCK OF golu CLOSE
" approaches q billion, amounting on June l
TO sgsi.511 1871, which has since been little
increased, as the receipts from the mines with
imports ON the Pacific side more than compen-
safe for such exports MS have been made from
Atlantic ports. Last year the production was
nearly S5JOOOO0 a month, and reports that
have come from Colorado and other States and
from Alaska indicate that the amount this year
can hardly have been less than S6,WO,OO a
month, besides the large amount that comes
in from Mexico and British Columbia, and
from Australia on the way to Europe, thus
ncutrallzng in part or wholly any Atlantic ex-
ports On March l, 1897. before President Me
Kinley was inaugurated, the stock Of gold in
the country was S7O7 95SS5S; it Increased to
S7G4. 0501l4 by March, 1898; to $500, 743,02S
last July, and. in spite of all expenditures grow
ing out of war and the payment to Spain, has
risen over Sl20,000,0O0 during the last year.
The change in National policy, which has given
new life to industries of all sorts, and to the
country new financial position in the world,
has in no other respect achieved more remark
able success than in the constant. and large adj
dtlon to the Nations stock Of gold.
1t Is possible to have too much gold, as 1t
IS to have too little. A vast amount Of wealth
held idle and non-producing, If In excess of
the amount required 10 insure the highest
safety and confidence for the Nations currency
and finances. does harm by unduy depressing
rates of interest and encouraging excessive
speculation or harmful advance In prices.
But it may be said that, except in banking
circles where the accumulation Of gold has
been held accountable for lower rates Of In
terest than were desired, evidence does not ap-
pear that the supply in this country has yet
caused any mischief. 1t was not the over
abundant supply of gold which prompted the
creation of many corporations with inflated
capital. nor can the stock Of gold be held re-
sponsible for the exceeding scarcity OF iron
and It's remarkable advance in price. In fact,
the year has not yet brought those dangerous
speculative excuses which disturb prices Of
the great staples and dcrange trade in them,
and the speculation In securities may be read
ily traced to nearer and more obvious causes.
But If It cannot be said that the country would
be distinctly benefited by a decrease in its
stock of gold it is nevertheless clearly true,
as bankers have been saying, that it could very
we'll spare some millions.
One function Of the metallic supply Is TO af-
ford sufficient and sure basis for various
far passed the point at which dstrust or alarm
would follow an outgo of gold The entire vol
ume of paper In circulation on June l was
about 81 097 739635. or only S11 for every SO
of the gold In actual use, and over S400,000,0o0
OF the paper Is In the form of silver certificates,
against which a like amount in silver Is con-
stantly held by the Treasury. This leaves less
than S700.OoOo00 of United States and banking
to1 nya Of al In
nearly S1OO00OOOOO gold in use, the Treas
ury alone holding for its protection S234,OOo'-
900. or nearly a quarter. The most striking
phenomenon during the last year has been the
comparative scarcity of notes and the difficulty
of getting into circulation as many OF them as
the public has desired to use. and it is in no
sense an extravaganza TO say that the paper IS
actually worth more in this country than the
gold II represents.
These are the actual conditions which exist
when men Of extended influence are praying
that the responsibilities OF the Treasury be
lightened by retirement OF part or all OF the
lecai.tender notes Somebody has to be re-
sponsbe for maintaining the value or the
paper currency required. 1t Is not at all clear
70 the people to say TIE least that the bank
ing institutions throughout the country would
be found better able to bear that responsibility
or more sure to hear It with safety for the peo-
ple. than the Treasury, which is the agent OF the
people themselves. The paper currency Is for
their use 1t is necessary, and its unquestioned
soundness is also imperatvely necessary to
the prosperity of their business and industries.
The people themselves should surely be as
worthy of trust in the protection Of the money
which Is their and the very likelihood OF
their trade as any body OF bankers which could
10 selected and as to sufficiency of power
there can be no comparison. Behind the notes
of the people are all the resources and credit
Of the Government a Nation which promptly
offered to lend S1,OOO.OO0,00O to its Govern
ment when it wanted TO borrow only S2OOOOO.-
900. Banking currency has not always been
found absolutely secure In this country to say
nothing of others. But the notes of the United
States are everywhere as good as gold, and
recent experience has shown that no party
can live which attacks or even threatens their
soundness.