Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-07-03
OF GOLD
Secretary Gage Gives the
Reason for it.
IT WILL SOON RETURN
As the Balance of Trade is in Favor
of the United States--He Opposes
the Issue of More Interest Bearing
Bonds in the Future.

New York, July ga special to the
World from Washington give a steno-
graphic report of an interview with Sec
rotary of the 1,re Gage. The See
rotary says:
top notch prices for American sec1i"i-
ties, low rates of interest at home, higher
rates abroad and easy money market in
the United States, as against a COMPARE
lively tight market abroad-these are a
few of the most potent reasons for the re-
cent expectations of American gold. The
slight exodus of the yellow metal need
cause no surprise or concern. When for
eign held American securities are return
ing to this country for liquidation, as
many millions worth have been returned
recently, because of the high prices pre-
vailing, it is but natural that the gold
paid in exchange for these securities
should be shipped abroad. Foreigners
holding our negotiable paper realize hat
they can now dispose of their property at
a fair profit and they have been quick to
take advantage of the prices offered. Just
how much more foreign held American
securities will be returned for sale. no one
of course can accurately ~foretell.
1T is fortunate that We nave the money
to meet our obligations as they are from
time to time presented. 1t takes two to
make a bargain, aud so long as foreign
holders of American securities are anX-
ious to sell and we are willing to buy the
transaction is placed on terms of mutu-
atty. l do not anticipate any heavy eX-
portations of gold. Five, ten, fifteen. per-
haps twenty millions more will be rams
ferred to Europe. but l do not believe the
latter figure will be expected. The pay
ment in Spain accounts for the loss of
$40. 600. 900, and add to this the reasons
given above and one has a solution of the
gold expectation problem. With the bal
ance of trade largely in our favor. much
of the gold which has recently left the
United States will certainly be returned
when we want it. 1t may be one month,
it may be six months, or even a year,
before it is sent back to us, but so long
as the large balance is in our favor. we
may be sure that Our gold will sooner or
later be returned to our shores unless we
prefer to take something else in its place.
Money goes Where it can get the best re-
ward, either in the way of interest for it's
use or exchange for commodities. When
we lose gold it tends after a time to pro-
duce higher interest in our markets. The
receipt of it on the other side tends to
make interest rates lower there, and SO
there is a tendency to an equilibrium
when gold shipments cease, whether to or
from our shores"
Secretary Gage believes the prosperity
the country has enjoyed for the last two
years is here to stay. so long" he add
ed, "aS the people have confidence in tine
ability of the government to fulfill it's OBJ
legations, dollar for dollar Secretary
Gage is heartily in accord with President
McKinley's foreign policy. When the
question of taking all or non Of the Phil
ippine Islands came up, the secretary ar
gued against acquiring the entire archi-
! pelago, but now he believes in holding
them. He was also opposed to the pay
ment of $40. 900, 900 to Spain as an indem-
nifty, but, he added, this was too small
a matter to bubble over. Mr.. Mckinley
and Mr.. Hobart, Mr.. Gage believes, will
be the republican nominees in 1900 and he
anticipates their return to office "by a
vote never before given to a candidate
for president"
Mr.. Gage does not expect to see the
question of trusts evaded by the repub-
lican party in the next contest. Unlike
Attorney General Griggs, POSTMASTER
General Smith, Senator Hanna and othe1
prominent republicans, he believes thu
trust question will become a political is
sue. '.This question is certain to get int
politics. said he.
Mr.. Gage said the government defici
for the fiscal year just closed was mucl
larger thar the deficit for the presen
year will be. He anticipates a deficit o
less than $50, 900, 900 for the year ending
June 80, 1900, a decrease of nearly halt
The large shortage for the last year wa
caused by the expenses of the SPANS
war and the unlocked for obligations i
Cuba, Porto Rico and the Philippines
Cuba and Porto Rico are almost Self-sus
tanning and within a few months receipt
from customs, etc, will exceed the ex
penseS.
The World correspondent is authorize
!, to say there will be no issue of bono
during the Mckinley administration un
less unforeseen events cause a raid upo
the treasury gold. Secretary Gage is sal
to be emphatically opposed to the issu
of interest bearing securities in time O
peace.