Iron County register., 1899-04-06
ABOUT GOLD IMPORTS
a Recent Prediction of Rradxtree an
Leaves an Important Element
Out of Consideration.

A few weeks ago Bradstreets' waa
confidently predicting gold imports ON
very considerable scale. That journal
now regards the outlook for importa-
tions of the yellow metal as decidedly
unfayorable. In fact, it says in so
many words that gold importers are
not in sight. Bradstreet's. while "A
pronounced gold paper, is, as rule,
quite fair in its statements of fact,
and usually well-informed concerning
financial and business conditions. But
its Judgment is frequently at fault i'm
dealing with the probable movements
of gold, for the simple reason that,
like all gold papers, it fails to take
into consideration the most important
element affecting such movements.
namely, that of international debt. II
for month or two or three there is
heavy trade balance in our favor, IL
is broadly assumed that gold in large
amounts will promptly move this way.
Under such circumstances there gem
orally is beginning, but the very mo-
ment it shows signs of becoming large,
steps are taken in Europe to check il.
The great banks put up their discounts.
and only short time ago the Bank of
England is reported to have become
heavy borrower in the market for
the purpose of creating a stringency,
protecting its reserve, and preventing
an outflow of gold. Under normal con-
ditions, an annual trade balance in our
favor of $500 100000 or $3OO,0OO, 900
would bring gold to our shores in large
amounts. But conditions are not nor
NAL. The general adoption of gold as
the money standard has led to steady
and ever-increasing demand for that
metal, which demand must always he
taken into account. Great nations,
containing hundreds OF millions of
people. which, few years back, used
no gold whatever, save in the arts, are
now straining every nerve TO accumu-
late vast boards for monetary pur-
poses. During the last year Russia
alone added nearly $s0,00O,0O0 to her
stock. Her pressure upon the London
market is at all times strongly marked
and important feature. The same is
true of Austria Hungary in lesser de
gree, and latterly Japan has loomed up
as factor of no inconsiderable pro-
portions. As nation after nation swings
to the gold standard, they one and all
begin to reach out for their part of
the worlds gold Mr.. Everett, in his
memorandum, the conclusion of which
is given in this issue, shows that while
in 1873 there were fewer than $4,000, 600
of people upon the gold standard, there
are now 360, ,O0O, ,O00-more than a seven
fold increase. As there has been moth
ing like the same increase of gold. it
follows that the distributive
share of each nation has become less.
With 300,OO0,000 of people bidding
against us for the worlds stock of gold,
we cannot expect to get as much of it
as we would if our competitors were
only one-third of that number. This
struggle for gold is, to some extent,
by the great trade journals.
but they appear to be blind as to its
effect upon productive industry. When
ever Russia locks up dollar of gold it
leaves just so much the less to measure
or price" the American farmers grain,
and in fact everything else that we pro-
duce. 1t would seem that almost any
one should be able to get as simple an
idea as that into his brain, but there
are many who have thus far been un-
able to do so. But the direct and inn
reason why gold imports are
so small and disappointing is the cir
of our being so heavily in
debt. The interest upon our foreign
debt is certainly not less than $2OO,0O0.-
BOO year, and it may be $4,000, 900
more. Other gold payments which we
annually make swell the sum to about
S400, 100000. Our exports must exceed
our imports by that sum to simply
make it a standoff. If we succeed in
loing this, and gold begins to move
heavily in our direction, England and
other creditor nations will at once
check it, by raising their discounts and
sending home American securities,
with the double effect of stopping the
outflow of gold and breaking our mar
ket at the same time. In such n strug-
gle the debtor nation is at dreadful
The gold standard in
,reases that disadvantage by lowering
he price of everything which we sell
n Europe, and out of which our debt.
,rs must be paid.-H. F. Bartine.