The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-07-04
EXPECTATION OF GOLD
Accounted For BY Secretary of the
Treasury Gage.
IT WILL BE RETURNED
NO CAUSE FOR ANXIETY OVER
THE MATTER.
PeIonna Of TT, n,,r To
IT WILL BE RETURNED
Balance of Trade Largely In Our Fa-
vor and Gold Must Sooner or La
ter Come Back to Us Unless We
Prefer to Take Something In Its
Place.

New York, July "A special to the
World from Washington gives a steno-
graphic report of an interview with Sec
rotary of the Treasury Gage The secre-
tary says:
Top notch prices for American securi-
ties, low rates of interest at home, higher
rates abroad, an easy money market in
the United States as against d compare
lively tight market abroad-these are a
lew OF the most potent reasons for the
recent expectations of American gold.
The slight exodus of the yellow metal
need cause no surprise or concern.
When foreign-held American securities
are returning TO this country for liquida-
tion. 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 Sc
curities should be shipped abroad.
Foreigners holding our negotiable pa
per realize that they can now dispose Of
their property at a fair profit, and they
prices offered. Just how much more for
eign-held American securities Will be re-
turned for sale, no one, of course, can ac-
curately foretel.
1t is fortunate that we have the money
to meet our obligations as they are from
time to time presented. 1t takes two 10
make a bargain. and so long as foreign
holders of American securities are anX
ious to sell and we are willing 10 buy the
transaction is placed on terms of mu-
tuality.
Il do not anticipate any heavy exporta-
tions of gold. Five. ten, fifteen, perhaps
twenty millions more Will be transferred
10 Europe. but l do not believe that the
latter figure Will be exceeded The pay
ment in Spain accounts for the loss of
S20,00O,000, and add to this the reasons
given above, and one has a solution of the
gold expectation problem.
Will Come Back to U.s.
with the balance of trade largely in
our favor, much of the gold which has re-
Gently left the United States will certainly
be returned when we want il. It may be
one month, it may be six months, or even
q year, before ii is sent back TO u.s. but
SO long as the trade balance is in our IA
. vor, 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
reward. either in the way of interest for
Its use, or exchange for commodities.
When We lose gold, ii tends after a little
10 produce higher interest i'll our mar
kets- The receipt of il on the other side
tends to make interest rates lower there,
and so there is a tendency to an equilibri-
UNI 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 10 stay. so long he add
ed, 'as the people have confidence in the
ability of the government 20 fulfill itR
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 acquiring the
entire archipelago. but now he believes
in holding them. He was also opposed TO
indemnity, but, he added this was too
small a matter to bubble over.
Mckinley and Hobart. Mr.. Gage be-
Ieves. will be the Republican nominees
in 1890, and he anticipates their return Ia
office, by a vote never before given TO d
candidate for public office