The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-07-04
Over the Slight Exodus Of the Yellow Metal
to Foreign Countries.
Will All Soon be Returned to This
Country in the Settlement Of
Trade Balances-The Secretary
Confident That the Prosperity
the Country Has Enjoyed for
the Past Two Years Has Come
to Stay.


the World from Washington gives a
stenographic report Of an interview
with Secretary of the Treasury Gage.
The Secretary said:
1.-The top notch prices for American
securities, low rates of interest at
home, higher rates abroad, an uneasy
money market in the. United States as
against a comparatively light market
abroad-these are a few of the most
potent reasons for the recent exporta-
lions of American gold. The slight
exodus of the yellow metal need cause
no surprise or concern.
when foreign held American Sc
curitieS are returning to this country
for liquidation, as many millions worth
have been returned recently, because
of the high prices prevailing, it is but
natural that the gold paid in exchange
for these securities should be shipped
abroad.
Foreigners holding our negotiable
paper realize that they can now dis
pose of their property at fair profit.
and they have been quick to take adj
vantage of the prices offered. Just how
much more foreign held American Sc
curities will be returned for sale, no
one, of course, can accurately foretell.
1t is fortunate that we have the
money to meet our obligations as they
are from time to time presented. It
takes two to make a bargain, and as
long as foreign holders of American Sc
curities are anxious to sell and we al G
willing to buy, the transaction is placed
on terms Of mutually.
st do mot anficipa "a anv hQavv ay.
portations of gold. Five, ten, fifteen,
transferred to Europe, but do not be-
lieve the latter figure will be exceeded.
The payment of Spain accounts for the
loss of SIC, 100000, and add to this the
reasons given above, and one has So
luton of the gold expectation problems.
With the balance of trade largely
in our favor, much of the gold which
has recently left the United States will
certainly be returned when wesWant 1t.
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 trade
balance is in our favor we may be su G
that our gold will sooner or later be
returned to our shores unless we pre-
fer to take something else in it's place.
Money goes where it can get the
best reward, either in the way of in
terest for it's use or in exchange for
commodities. When we lose gold it
tends, after little, to produce higher
interest in our markets. The receipt
of it on the other side tends to make
the interest rates lower there, so there
is a tendency to an equilibrium when
gold shipments cease, whether to or
from our shores"
Secretary Gage believes the prosper
ity the country has enjoyed for the last
two years is here to stay, $50 long, he
added, "as the people have confidence
in the ability of the Government to full
fill it's obligations dollar for dollar
Secretary Gage is heartily in accord
with President McKinley's foreign
policy. When the question of taking all
or none Of the Philippine Islands came
up, the Secretary argued against ac-
quiring the entire archipelago, but now
he believes in holding them. He was
also opposed to the payment of 500
100000 to Spain as an indemnity, but.
he added, this was too small matter
to bubble over.
Mckinley and Hobart, Mr.. Gage be-
nees in 1900, and he anticipates their
return to office ''by vote never before
given to candidates for public Office
Mr.. Gage does not expect to see the
question of trusts evaded by the Re-
publican party in the next contest. I'm
like Attorney General Griggs, Post
master General Smith, Senator Hanna
and other prominent Republicans, he
believes the trust question will become
political issue.
"This question is certain to get into
politics. said he.
Mr. Gage said the Government deficit
for the fiscal year just closed was
much larger than the deficit for the
present year will be- He anticipates a
deficit of less than $50,000,OO0 for the
year ending June 80, 1899, a decrease of
nearly half. The large shortage for the
last year was caused by the expenses
of the Spanish war and the unlocked
for obligations in Cuba, Porto Rico
and the Philippines. Cuba and Porto
Rico are almost self-sustaining, and
within a few months receipts from GUS
toms. etc, will exceed the expenses
The "World'' correspondent is au-
thorized to say there will be no issue
of bonds during the Mckinley Admins
tration. unless unforeseen events cause
a raid upon the Treasury gold. Secre-
tary Gage is said to be emphaticaliy
opposed to the issue of interest bearing
securities in time of peace.
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