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

De OBTAINED was at the counter of the
gold broker. Then he who pur, has, Il
goods abroad was compelled. AS NOW
'tn9pay therefore in gold, ar is .qniva-
lent. ana he purchased his gold with a
deprecated currency My times
since the resumption nf specie pa, ut
aud especially III 1893 and snhseanen,
years. for one reasOm or ano' h+r, people
preferred gold tO other forms of cur
rency and they had the right w have
that preference recogn'zed he mer
chant OF the banker whn in the conrse
OF business purchases or sells 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 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 a
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 a draft payable In London.
If the balance of commerce, as distin-
guished frcm the somewhat more tech.
nical phrase, balance of trade,i is against
us; in other words, If 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
emit conditions, take this paper to the
treasurer's, Office and demand its re
demption. and he will request that it
be redeemed in gold. l 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 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 Wall
street has made another raid upon the
treasury, and that certain volume OF
gold has been Shipped abroad. Sup
pose now the government paper has
either been retired permanently and
cancelled or 1t has been redeemed and
retained in the treasury until .ax
changed for gold; or, snppose the policy
for which our. free silver friends con
tend has been adopted, and coin de
mands are redeemed in silver. Under
each and all these conditions, gold, moi
being obtainable at the United State,
treasury or in exchange for nationa
bank notes. will be purchased Of ths
gold broker. and the results will follow
the mere possibility of which threw the
country into the greatest panic of mod
ern times. The endless chain has. thus
been broken, but there has been nc
substitute provided to enable the peo
Pile to get gold from the banks.
persume this argument will be met
by the proposition that 30 long. as the
present dominant party remains in
power, and SO long as we enjoy the un.
precedented measure Of prosperity
which is now ours. no danger. need be
I feared from the export 6f.'gold. Fol
arguments sake'grant the-truth Of this
but who shall insure the continuance Of
these conditionsY The fact that gold
10 now flowing to. the United States in
/ such quantities affords the most conyjn.
cling proof that the day 10 not far. dis.
tant when it will fiow the other way.
II conditions can be conceived that
/ would bring all the gold of earth to our
shores in twelve months, It would rev.
0lutiOnize the financial relations to
such an extent that the. securities of
thiscountry, now held abroad, as we'll
as the bonds Of other nations would be
sold on our markets. and some volume
OF gold would speedily be needed for
export to restore the equilibrium. In
the swing of years the gold of.the
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. and 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
at premium as it was in the sixties.