The Owosso times. (Owosso, Mich.) 1897-1926, 1899-06-16
One Billion of Gold

present time is not FAR from 81 900 900, 900
$685., 4S3, sos OF this sum nearly $3.50, 00O,-
900 is in the Treasury and $500, 600 900 in
the New York City banks, while the re-
mainder is distributed among banks of de-
post and OF savings, in other institutions
and in private repositories throughout the
country
The striking signi6cance OF this enOr-
nous and unprecedented total of 81, 600, 000-
900 gold will appear when We state that it is
larger amount of gold than is possessed Ly
any nation: that it is about one.fourth of the
entire worlds stock of the metal. Ii is
greater sum than is held by Great Britain
and Russia combined. 1t is within $3.50, 000-
900 Of the entire amount possessed by
Great Britain and Germany, aud it is $780,
600, 900 larger than the sum held by France,
which, next to the United States. is the
largest gold holding country in the world.
Not only does the possession OF this gold
makes this country pre-eminently rich, but
our existing ecou omic cOndillbns are such
as to enable us to maintain our acendancy,
and so long as we continue To % a large
creditor nation and so long a, W ienaciods
ly adhere to our policy of ipotectlon our
financial position will remain unassailable.
The most marvellous fact in connection
with our possession of this billion dollars in
gold is the rapidity with which more than
one-third of it has been accumulated
Three years ago the holdings of gold coin
and bullion in the United States were, in
round figures, 5000, 900, 900. Since then
the net mportations of the metal have been
1925, 900, 900. aud the remainder OF the In
crease has been made up from the product
of our mines, less the amount used in the
arts. and by the release of gold from boards.
Another significant fact is that the popu-
lar sentiment regarding gold has been en-
tirely reversed in three years. For ex-
ample, in 1896. until the Presidential cleo
ton, there was an urgent demand for gold,
due to dstrust regarding the maintenance
Of our currency conditions and also due to
the entire absence of confidence In the Fl.
nancial policy of the Cleveland administra
ton. During Mr. Cleveland's term the
Secretary of the Treasury sold bonds of the
par value of S262, 3l5, 435, bearing high
rate of interest, for the ostensibe purpose OF
maintaining the gold reserve, which was
constantly being depleted, but really for the
purpose of making up for deficiencies In
revenue caused by the operation of the Will
son free-trade tariff The demand for gold
drained the Treasury, bringing 1t almost to
the verge of bankruptcy at the end of Jan.
1895, and again at the close of Jan. 1896
No sooner was gold paid into the Treasury
for bonds than 1t was Immediately with
drawn. through the operation of the lend.
less CHAIN" and shipped to Europe or do
mestically boarded In expectation of its lat.
or commanding premium, which expec
lation was realized in the fall of 1896. The
product of our mines was largely exported
and gold everywhere was il request
When the result of the Presidential cleo
ti0n. In November, 1896, was announced
confidence was instantly restored and there
followed radical change In popular senti-
nent regarding gold. This Is evidenced by
The rapid accumulation Of gold above noted;
by the accumulation of the unprecedented |
amount of ths coin and bullion now held in |
the country; by the fact that the vaults of |
the Treasury and of the banks are literally |
overlooking with gold; by the fact that for |
ct least six months the Assistant Treasurer |
ut New York has been obliged to refuse to J
accept gold In exchange for legal tenders,
whereas three years ago he was daily and |
almost hourly required to redeem legal |
tenders with gold; by the fact that as rapid |
ly as gold coin is paid out by the banks on
current disbursements 1t is promptly exchang-
ed by. the holder for some form of paper
money; and by the fact that for the first
time since the resumption of specie pay
ments duties at the Custom House have
been almost wholly paid In gold.
Three years ago there was an entire alb
sence of confidence In the financial policy
of the administration; now confidence
abounds. Three years ago the country was
grooming under the burden of foreign CON-
petition and commercial and Industrial en-
terprises were Frustrated by the operation
of the Wilson ee-trade tariff; now the
sountry Is mavelously prosperous, our ex-
ports Of manufactures are enormously In
creasIng, our domestic industries are thriv-
ing. wages are advancing; and all this Is
distinctly traceable to the operation of the
Dlngley protective tariff.
The fact of our possession of one billion
dollars 10 gold and of the existence of the
highly favorable economic conditions above
acted Is signal triumph for our protective
policy. The gold could not have been
accumulated and the trade conditions could
not have been attained under q free-trade
policy, for the essential factor influencing
Me accumulation OF the gold has been con-
6dence, and the underlying factor of the
'rade conditions has been prosperity, and
seither confidence nor prosperity ever ex
|sted under free-trade tariffs.