The San Francisco call., 1899-10-01

be wiling to go even farther IN financial leglS-
lation than the conclusions reached last spring
by the caucus committee.
Those conclusions related to the basic conditions
OF financial system, and proposed putting under 1t
the sure foundation OF the gold standard Such ac-
ton fixes the par redemption OF all forms OF currency
in gold and plants the public credit immovaby upon
that basis. While the law fixes gold the unit
OF value the decaratory resolutions OF Congress per
NIT the redemption OF the public debt in coin, either
gold or silver. This admits that such circumstances
may arise, and they would unforeseen and sud-
denly under which payment in silver would smte the
credit OF the United States in fatally vital spot.
With such gap between the nominal and actual
value of the standard silver dollar has existed since
the silver tnkering began with the Bland bill, there
is left under credit mine to be exploded by any
financial accident Therefore the proposed legislation,
finally defintve OF financial foundation, is highly
mertorious But everywhere this year there is an
obvious strengthening of the purpose OF the Repub-
lcan party to stand by the sound money coors under
which it won in 1906 The persistence of the free sill
yer movement among the Bryan Democracy is
equally indicative of the determination OF the oppo
sition TO persist in its policy.
The Republican party may read an instructive les
from its experience, In 1890 and 1902 it
went down in dusty wreck with its tariff policy in
ton and loss 1t saw the strength OF the opposition
grow and gain in the Senate after from what
had appeared to be impregnably Republican States,
But the party persisted and in 1896 it rose repaired
from wreck and refreshed by its from power,
and has marched forward until there is not left
straight Democratic Senator from Northern State,
and there are six Republican Senators from the
South
There is but little danger now. But the prosperity
which avors the party may change. Only dog
mast will deny the fact in the history OF financial
panics that they come under all revenue systems,
under tariffs for protection and tariffs for revenue and
the business OF all countries regardless of their
form OF government The current flush times are not
an American specially. Our mastery gain in foreign
trade is not caused by prosperity at home alone but
by prosperity abroad which stimulates commercial
exchange and enables the world to buy what have
to sell England and the Continental nations are
fourishing The portentous advance in the metal
trades is peculiar 1t is general in all the
iron and steel countries Confidence is high and
general and speculation has caught its inspiration
There are all the conditions which imply reaction
1t may be long deferred but some time it will come
Confidence is like man in a balloon, who looks up
he rises and feels no fear. But when high in the
air he looks down and trembles. SO the trading and
time until it faces to the rear trembles, stops and
there is panic
When this time comes, unless have strength
ened financial system, the OF 1893 will be
repeated and the Federal treasury, which is yet sui
iering annual deficit will be in the same condition
to which it plunged by the last panic Then with
the silver movement as persistent as protection
among the Republicans, who say that it will not
succeed and inoculae fiscal system with d septic
influence which will make it permanently inhrm?
1t is the duty OF the Republican party make that
system immune to bubonic politics The legislation
in sight goes lar to that end, and il Congress shall
choose to go farther. and by simplifying whole
body OF currency and adapting banking system to
the needs OF the country making it strong enough 70
weather any storm, it is easy that the conse-
quenCes OF loss OF confidence will be greatly limited
and panic may be slight storm instead OF cy-
clone like 1903