The Denison review. [volume] (Denison, Iowa) 1867-current, 1899-02-10

o. obtained was at the counter of the
gold brok.r Then he who pur, hAssd
goods abroad was compelled. AS now.
to pay therefore in gold, ar is .qniva-
lent. and he purchased his gold with a
deprecated cu rency. My times
since the resumption "f specie pawn ut
aud especially i" 1893 and subsequent
years. for one reas0r ar ano her, people
preferred gold to other forms of cur
rency. and they had the right w have
that preference Recognized he mar
chanf or the banker ~hn in The course
OF business purchases or sells a draft
payable in London. and therefore paw
ah'e III gold, aud who ships the gold
with which to meet the draft when pre-.
sented should not be subjected to ex-
ecration or criticism. S. long as this
country conducts a foreign commerce,
SO long will these operations be neces-
sary. Some provision must then be
made by which those in possession of
other forms of currency may convert
the same into gold at par. or the latter
will be obtained at a premium, and
premium on gold means the retirement
from circulation of every dollar of yell
low metal with which we are now
blessed.
An Apt Illustration
Permit me to illustrate: Suppose
merchant purchases goods abroad. He
must needs pay for them IN gold. or in
draft payable in gold. In the course
of business, he goes to his banker and
purchases draft payable IN London.
If the balance of commerce, as distin-
guished from the somewhat moro tech
nical phrase, balance of trade,is against
us; in other words, # the banks of this
country have no balance in Europe
against which they can draw; then the
banker would charge high rate of ex-
change, for he must needs ship the
gold with which to meet the draft.
The draft is purchased, and now the
banker looks in his vault, where he
discovers no excessive volume of gold,
but does find plenty of government
paper. He will certainly, under pres
ent conditions, take this paper to the
treasurer's, Office and demand its re
demption. and he will request that ii
be redeemed in gold. say he will de.
mand the redemption, for that is his
statutory right. He will request the
gold, for that is not his statutory right
1t is only a privilege previously accord,
ed. The legal option is with the gov
eminent to pay in silver, if it chooses
But his demand and his request are
both complied with; he gets the gold
the next morning we read that Wal
street has made another raid upon thu
treasury, and that certain volume o.
gold has been shipped abroad. Sup
pose. now the government paper hal
either been retired permanently ant
cancelled or 1t has been redeemed ant
retained in the !; treasufy until tex
changed for gold; or, suppose the polio,
for which Our. free silver friends con
tend has been adopted, and coin de
mands are redeemed in oliver. Unde
each and all these conditions, gold, no
being obtainable at the United State
treasury or in exchange for nationa
bank notes. will be purchased Of tn,
gold broker. and the results will follow
the mere possibility of which threw tn,
country into the greatest panic of mod
, ern times. The endless chain has thu
been broken. but there has been q,
substitute provided to enable the PEG
, pie to get gold from the banks.
lpersume this argument will be me-
by the proposition that so long as tn,
present dominant party remains il
power, and SO long as we enjoy the un
precedented measure OF prosperit,
which is now ours no danger need b,
feared from the export 6f:gold. Fo
arguments sakegrant the-truth OF thi,
but who shall insure the continuance o.
these conditionsY The fact that ,golt
Do now flowing to, the United, States il
such quantities affords themost conyjn
cling proof that the day is not far dis
tant when it will fiow the other. way
It conditions can be conceived tina
\ would bring all the gold of earth to ou1
shores in twelve months, it would rev
olutionize the financial relations Il
!. such an extent that the. securities Of
thiscountry, now. held abroad, as vel
as the bonds of other nations would b.
sold on our markets. and some volume
of gold would speedily be needed TO,
export to restore the equilibrium. IL
the swing of years the gold of.ths
world will distribute itself among com
mercial countries somewhat in proper
ton to their needs. 1t will ebb and
flow from one country to another in the
future as it has in the past. ana when
1t Gibbs from us what is needed for ship.
ment must be Obtalnable at some place
at par for other money, or gold will be