The eagle., February 19, 1896, Page 11, Image 11

About The eagle. (Silver City, N.M.) 1894-1???

Image provided by: University of New Mexico

                
LAULE: WEDNESDAY, FRBW'AIU 1V ll;..ü.
11
How Wall Street Ilstnlier Muf Furee Gola
to l'ruiulum.
A prominent official cf tho treasury
la riuotcd In tlio reports of tho Asi-oci-
ntp.A Press as saving1 that tho "aTCnc.V !
la Now York which ia responsivo for
tho exportation of gold may yet f orco
tho secretary of the treasury to put out
silver," and that if this should occur
tho president will publicly placo tho
blamo whero It bolones, and f ay that
"he was forced thereto by tho bnnk
Brs" that is, the bankers of New
York. Tho president, it is also Raid, is
"reaching tho conclusion that gold
withdrawals aro not duo altogether by
tho natural laws of trade, but is in
part a conspiracy against the nation's
credit." We understand Mr. Cleve
land to mean by this that tha most
vaunted friends of "sound money" and
tho most trusted friends of tho nation's
nmrlit. urn thn renl foes that OTO embar
rassing his administration, and not tho
silver cranks and the advocates of
cheap money. These people aro sys
tematically raiding and plundering tho
gold reserve and periodically forcing
the government to Issue bonds which
they buy at their own price. That
this recurring drain on the gold reservo
Is very largely duo to the efforts of tho
syndicates to force tho government to
resort to successive bond lssuo3 seems
reasonably certain. Not by a:iy means
has all the gold drawn from tho treas
ury been drawn for tho purposo of ex
port Thus, for the calendan year 1805
there was a withdrawal of gold from
tho treasury to the amount of C33.030,
000, whllo tho exports wcro C74,000,CCO.
In addition, there was tho gold produc
tion of this country for that year vvhlisli
xr-K p.nlnod at tho mints. At&Ih. on
December 1, 1394, thcro was f,lll,C33,000
rold In tho treasury, and bstweon thrvt
timo and tho dato of tho contract wlt'i
tho svndlcato 037.000.030 had bejn with
Irawn. thouTh onlv half of this wan
for oxport This was drawn to foreo a
bond lssuo or oleo iu autlup.'.tioa of it.
It may have been that seolng thrvt g"ld
waa boing withdrawn for oxport tho
bankers foresaw or believed that an
other bond Issue was inevitable, and
hn.Rt.pnod to make thomsolvos roadv to
buy tho govornmont'3 bonds by raiding
the government's from.
llowover, that may bo these repaatod
Knrnmblos fur irold. murtt. If continued.
Inevitably forco gold to u preiuinin. No
Riiroi Wiiv to brlu'r that uuuut uoulcl
bo imagined than for tlio government
to bo porpalunlly In tho market for
gold at any price. So far as tho lo?al
fondora ai'u concerned, it is olmnlv
puerilo to hold that they would not
pans current rs readily a3 Oliver ctuu
catos at their faco valuo if they wcro
rodeeiucd in coin at tho government's
option and convenience. Thoy aro
now prosoutcd for redemption, not
through any lack of confidence, but
simply bocauw) It la a convoniont in
ntnimnnt for tho exnorter and the
bullion dealer and for syndicates that
UoiV the (Sold Stanil .i-.l ' . .'vtr:
Our 1'rople.
' A correspondent of the New York
Sun, who signs himself "Banker,"
writes to that paper as follows:
"When tho greenbacks have bean re
tired, what then? What kind of la w
ful money will bo available for tho 2.'
per cent reservo fund of tho banks
Goldl
"In what kind of legal tender moncj
shall the national bauk notes bo ro
í'.eemable? Gold I
"Whero will tho gold como from U
settle tho international 'balance o
trade?' From tho banknl j
"Then what will becomo of tho gok j
reserve of tho banks? and what wil
then becomo of tha banks when the!
'gold reservo' 3 exhausted? And ho
will tho suspension of specie payment
by the banks affect tho public mind?
"There is now about 5200,030,000 gol
in the country available for tho 23 p;
cent lawful reservo and moro th:v
8400,030,000 Is needed Where Ghall th
banks get all this gold from?
"Theso aro pertinent questions vhic
our Don Quixoto and his faithful aquir
I linvA not ft rannled with."
- - ii
These aro tüo cUiUcultia3 that tin
Constitution lm taken pains to pniu
out whenever tho proposition to rotiro
tho greenbacks and treasury notes has
been brought forward, flow long
could tho banks maintain spocio pay
ments? How long could thoy m in-
tain their lawful reservo? it is to uj
observed that tho banks havo no abil
ity to get gold c:eopt in tho onlin: ry
courso of business. They C Minot is
suo bonds for It and 'h'.-n pay it out .-
tho demand of nota Moldura, lor in:'.'
process would represent a eonsli'iit
stream of losses.
It is verv easv to show that tin
greenbacks have nothing to do wlt'i
tho outflow of gold, andtodomonutratj
that fact Is to show very clearly thi-.t
tho movemont to retire these notes i .
i.imply pai i of the colossal nchemo t;
rob tlio masses for tlio benefit of tliu
moueyed classes.
Tho Philadelphia American priul
snmn tabular statoraonts that are c..!-
culated to open tho eyes of thoso ;h
havo no very clear ideas of tho result i
of demonetization of silver oa the
trade and industry of this country, end
all for the benefit of Europe. Wo print
thoso tables below, merely promising
that the figures aro based on actual
calculations of the comparativo pricc3
of 10 commodities, roproscntlng over
two-thirds of our exports and 20 rrll
clcs representing nearly one-half of
our Imports for tho fiscal year ended
June 30, 1891:
At price equivalent to thoso rc-
oolvod in loiJ our exports oi uu
mestlo produco amounting to
C803.SOi.037, would nave been
worth ..11,888.171.039
Ro-oxports amounting to IJ2.035,
035 would hove boca worth at
nrlcA nnlvnlnnt to thosO DSld
for lmnorts ia 1873 81,013,193
anco l.i our Uvor ol iiw,j...
Add not gold oxports 4,528,01-
Add not sliver exports of ooln and
bullion 37,104,713
Our gross exports, which woro sold
at 330J,i:0,572, would hnvo brought 11,620,402,831
The same quantity of Imports,
whloh wo importod at a valuation
nf rt.-4.a94.ü. would havo cost at
prtoos equivalent to thoso paid In
1373 r""":":l
Loaving a total merca-ridl o
Making the total balance that tho
same amount of effort that wo
oxpondod la 1831 oa our foreign
trado would havo put to our ored
ltia 1873 719,721,072
Balanoe actually due on our for
eign trado 278,8ro,CQ.
Loss on our foreign trade for 1801
directly duo to the fall in prices
oauscd by tho demonetization of
silver. I If0.r
In other words, as the Ame.. can
points out, if we had received the same
recompense for our labor and energy
expended In our foreign trado In 1394
as we did in 1873, the produce that wo
sold would have enabled ub to meet
our foreign charges on our foreign
debt, etc., and pay off 5440,030,030 of
tho principal, thus reducing tho iatrr
cst charges for 1895 by nearly 818,003,
000. But, Impoverished by the appre
ciating gold standard which caused
falling prices, we were compelled to in
crease our foreign debt by probably
830,000,000.
Compared with the prices of 1873, our
losses on our foreign trade for the fiscal
year ended June 30th last caused by
tho fall in prices were still greater, ii
prices of 1873 had prevailed our trado
balance for tho year would havo been
r.omothlng like this for 1895:
At prices equivalent to thoso ro-
colvod In 1873 our oxporti of do-
mostlo produoe amounting to
8703,302,509 would havo boon
worth 81.7I8.783.C83
Ho-osports amounting to 01 1,14 ,MW
at prices oqulvolont to those paid
for Imports in 1073 would havo
boon worth g'.113'
Our gross exports which woro
valued at $337,038,103 would havo
brought il.709.031.rni
Tho samo quantity of Imports which
wo Inportod at a valuation of
0? l,0C0,O0i would havo co3t at
prlcos equivalent to those pild In
l)73 1.152.B33.308
Lonvln? a total morohandlso bal-
;:nco in our favor of 8 0l0,r3i,273
AiM not rold oxnorta 31.0.": -
Ai'. l net iillvcr exports of coin r.ml
million $.7,U !.",:?
r.Lin Import! of silver
.,rn 13 '3.1.C2J ?. .
M i'tlng tho total Imlr.nco tl'-t tli."
s;uno amount cf cliart that w j c::-
pomlcd on our foreign tr. V1 Is
I 9i would havo put to ov.r r -.li-
i:ili;7J t: .:. '
; l '.noo actually duo cn onr t r-
ol.tn trado for l"0i ...
Loss on our foreign tru,:!o f ;r I'ii
dlrcutly duo to tho fail l:ip.:c.i
cauncd by tho damonotlü".' i of
cllvcr ti .
That ia to uay, Jf prlc. i ti IC" l;s l
prevailed our trado of IS'.!. vr.v.: . i. .w
icjroased our foreign debt by C43;),i::'. -
j ), but under tho rrlc?s fixed by g 1 1
:K'nomotalllsm that debt has b?en i
reascd C103,000,00a Aa the Amerlc.:.i
, iya, our foreign crodltors havo born
pl-.-.ccd In a position to dictate our
Inanolal policy. Thoy say: "Issuo to
-.a government bonds in payment of
t!io dobt due us or wo will take gold."
'That ia tho situation to-day. Atlanta
.'oni'.tltutlon.
GOLD AMD SILVER.
n ictlmttts ns to the Produotlon la This
'inn'.ry t'io 1'n.it l'ear.
'; '.ikijtra dlspr.t2li stated \n\n wish to lorco a i ont salo. íuerapnis
Commorelal Appoal.