The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-15
CIRCULATION STATEMENT.
THURSDAY. MARCH Is, 1ss.
on N Gold Basis at Last.


of all forms of money issued or coined by
the United States, to refund the public debt
and for other purposes" This act, after more
than a century OF adhesion 10 the money
of the Constitution, definitely and finally
places the United States on an exclusively
gold basis. The struggle between bimetal-
lism and monometallism, which has been
going on continuously since the demoneti-
zation of the standard silver dollar in 1873,
has terminated in favor of the yellow
metal.
From the economic viewpoint, the re-
suit now accomplished is neither as reyo-
lutionary nor as disastrous as it would
have been if the worlds production of gold
had not increased rapidly during the past
decade Between 1880 and 1890 the average
annual output was one hundred and six
million dollars in value. This was with an
American population approximating from
sixty-five to seventy million people. With
little more than half that population, the
average gold production in the decade 1860
1870 was one hundred and twenty-six mil
lions per year, and II was REINFORCED by
the silver output which then enjoyed the
right OF unlimited coinage. From 1896 10
1893 the average of gold production rose TO
one hundred and thirty-two millions. In
1894 it advanced TO one hundred and eighty
one millions to two hundred millions in
1897. and to three hundred millions in 1899
These figures go to show that, to some ex-
tent at least the design OF the money
power to restrict the metallic currency of
mankind TO the volume of gold available
for use as currency in the year 1890 has
been defeated. If the gold discoveries OF
the future should be as rich and as nu-
merous as they have been for the past five
years II is quite reasonable to expect that
before the end of the twentieth centurys
first decade the money dealers all over
Europe and America will be demanding the
characterization of gold as a metal furnish
ing too large and steady a supply TO make
1t easy to control or corner. In a general
way. then, the gold standard bill which Mr..
Mckinley has just signed might be consid-
cred as a measure not extremely vicious
were IL not for the provisions it contains
placing control of national currency ex-
psnsion and contraction in the hands of the
national banks, without reference to Con-
gress. the people, or any other force re-
strictive Or even advisory.
Considered as political achievement of
the Republican party, the new law is a
highly interesting piece of legislation. 1t
was contracted and paid for in 1886 by the
foreign and domestic money power, which
poured its wealth into the nearly bottom
less pit CT the Republican campaign fund
OF that year. The gold standard and bank
ers' credit bill just as ii has passed the
two houses of Congress. is the settlement
OF that deal by Hanna, Mckinley, and the
other party leaders. They have kept their
pledges TO Wall Street and Lombard Street,
however much they may have ignored or
violated other pledges TO the people of their
own country, and they have their reward.
The currency question is absolutely out of
politics for the next five years at a mini
mum. The benefciaries of the act are in
possession of all they aGked for or wanted.
The gold standard is safe from interior
ence Of any sort. The national debt is
culation, and the bankers and brokers who
bled at every pore so nobly three and a
half years ago TO place a gold man, mas.
Querading as an International bimetallist,
In the Presidential chair, care very little
whether he succeeds himself or is sue
eeeded by Mr.. Bryan. The contributions for
corrupt purposes in TIE impending cam
paign will have 10 come from some other
source, and this fact is explanatory of the
Hanna Payne Ship Subsidy bill, the prop
osition to substitute the Pacific cable enter
prise, and the desire to please the trusts
by imposing a customs tariff on the domes-
tic commerce between Porto Rico and the
mainland. in defiance of the Constitution.
The Treasury gold reserve, silver certif-
cate, and refunding provisions of the law
are already familiar TO readers of The
Times, and need not be here discussed.
But one very important feature and one
fraught with consequences which may be
serious is contained in the new powers
conferred upon nationa! banks to organ
ize with "a capital as small as twenty-five
thousand dollars, in towns OF less
than three thousand inhabitants, and
TO take out circulation to the full amount
Of the face value of bonds deposited with
the Government 10 secure it. As Secre-
tary Gage says, In an analysis OF the law,
the present capitalization OF the national
banks lis ssh, oe0, 600, and their total cir
culstion outstanding is $253, 900, 600. There
is. therefore, possibility of an increase
iu circulation of 1858, 600 ,000." But Mr..
Gage is apprehenslye, OF says he is, that
the market price of the new two per cent
bonds may be forced up to a point which
will render it Improbable for banks to
buy them and deposit them against ma
tional banking currency. Such a thing is
highly improbable. The banks can we'll
afford to get along with little or no inter
est on their bonds. They will be largely
held by the people who have secured them
in exchange for old three. four, aud five
per cent bonds, receiving round bonus
by way OF compensation for reduced inter-
est, and, even without that consolation,
the circulating notes, In careful hands, are
worth ter per cent per snnum, II they are
Worth anything.
Indeed, there is no danger that while the
capitalists find 1t to their interest 10 en-
courage development and commercial en-
tsrprIse, they win not float all the credit