Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1917-10-12
GOLD EXPORTS AND THE TARIFF.

WY HEN gold goes out-whelher It is going out Of
w your pocket out OF a bank, out OF the country
10 goes because has a right to demand 1t. EX-
cept in the case charity gives up gold except
In exchange for something else that he prefers. When
the purchaser gets the other mans commodity, the seller
has a right TO demand the gol This is very simple
statement which Il is well for Deawaroans to keep in
mind in connection with the governments embargo re-
Gently placed upon shipments OF gold out Of the United
States
No take gold out Of the country unless he
has right to demand It. and If he has right to de-
mand IT, refuse without mpairing credit
though the impairment may be to only imperceptbo
degree in the Of small amounts When we began
selling Great Britain large quantities Of supplies In
1915 she sent gold Her gold did not last long she
dumped American securities on our markets or used
them a Of raising gold She Issued bonds to get
gold its equivalent and when she near the end
OF her resourceo issued bonds and loaned her tho
money or cred-the equivalent OF gold To the extent
that she Is now indebted to US, have the right to
demand now or at some future time payment In
gold.
We have been buying large quantities OF goods in
Japan China and South America. The sellers had right
to demand gold and they have exercised the right An
embargo may temporarily check such a movement OF
gold but it cannot check 10 long. Whenever buy In
excess Of our sales must pay In gold accumulate
oent which the seller is willing to carry credit When
an embargo was placed exports OF gold. Of the
80 "'"iuieW kold from the banks and had II ear
'lAe0 Tor mem-placed in the security vaults in their
s' as uus' funds which the banks could not use.
~ lar as mat transaction affected American finance
country SUI Jul u 'i0
n"puplleans nave always recognized the desrabnty
~ maintaining balance Of trade means Of koenine
money In this country. In order 10 d,so -. re
cans rom buying abroad and thus sending cold oh.o,
we maintained a protective tariff It is true ,bo, , ~
a protective tariff sent gold out Of tho co,,, ~
we had TO pay the expenses Of tourists in Furoo
had to pay for transportation Of our commoditcs a.,
foregn-owned ships and had to pay the interest and
dividends on AmeRican securities held by European in
yestors. But we reduced to minimum shipments OF coll
to pay for foreign goods.
Democrats changed the practice in 1913. Without 4
any way cutting of other expenditures in Europ
they opened markets that Europe and Asia bego
selling goods and thus took larger quantities
gold Industrial depression the result.
Recently the administration has been alarmed over u
exports Of gold. and the embargo was the result b
there are only two effective ways to stop exports Of
best kind OF money-one is to reduce excess purchas
from other countries and the other is to arrange
accumulation Of debt. If we induce those 9th
countries to buy our bonds. they viii take the bon
instead Of gold, but the bonds will afford them q
means OF demanding the gold any day they choose
send the bonds back II erect protective tariff.
shall discourage purchases abroad and in that way Ike
our money at home.
The arbitrary declaration that gold shall not be e
ported is in violation Of the laws Of trade and we CT
make it effective only by the adoption OF some Pill
other than the mere pse dixit Of government