People's Pilot, Volume 4, Number 6, Rensselaer, Jasper County, 27 July 1894 — THE GOLD OUTFLOW. [ARTICLE]

THE GOLD OUTFLOW.

One Scheme of New York Bankers That Hh Failed. The efforts of the New York bankers to force Secretary Carlisle to issue another installment of 5 per cent, bonds appear to have failed. Or. perhaps, to pnt the matter more accurately, we should say that Mr. Carlisle has apparently abandoned his purpose in this regard. For weeks past the New York press organs of the great monetary ring which assumes to direct the national finances have been engaged in an attempt to frighten the country into the belief that the drain of gold from the treasury for shipment to Europe would soon exhaust the reserve, and that unless the reserve should be promptly replenished by the sale of more bonds the credit of the government would be impaired. Without any doubt the gold reserve has been deliberately reduced by the process of hoarding currency and paying out gold for current expenses. Had the opposite course been pursued the accumulation of some $80,000,000 of available currency would have been impossible, and the reserve of $100,000,000 could have been kept intact, notwithstanding the withdrawals for shipment to Europo which have been affected by the presentation, of legal tender notes and treasury notes of 1890. Furthermore, the expressions of apprehension in monetary circles in New York found an ooto at tko tnAasnrjr. And from the dispatches which were Bent out from Washington some weeks jor Lilts pui pooo o£ tiicting* publio opinion it was apparent that at the time Mr. Carlisle intended to repeat his February proceedings and issue $50,000,000 to $70,000,000 more bonds under the resumption acts. But the plan has evidently been abandoned, as we gather from the dispatches, which show that the department is making an effort to replenish the reserve, and from the assertions given out from the treasury that the officials are not now alarmed at the continued outflow of gold. And this notwithstanding the reserve has actually fallen below $65,000,000, a lower point than was reached before the bond issue in February. We say that the scheme to issue more bonds has evidently been abandoned, and yet it may not be so. It is just possible that there may be a deep-laid plan to withhold gold from the treasury and allow the drain to continue, so that in the end the secretary can insist that he has been compelled to replenish the reserve by the sale of bonds as a last resort. There is some warrant for !, this suggestion in the report from Cincinnati that the efforts of the sub- [ treasury at that point to induce the banks to exchange gold for new currency have been unavailing. And there is also a report from New York that the associated banks had declined to agree as a body to allow gold to be withdrawn for shipment, leaving to each bank the privilege of acting for itself. Still we think it safe to say that unless there is some new turn in financial affairs there will be no further bond issue. The response from the country has been emphatically and distinctly against the policy. There never was any reason for borrowing money on bonds for the purpose of replenishing the gold reserve. Nor has there been any reason for the absurd apprehensions over the outflow of gold to Europe. The truth is that the whole gold movement has been perfectly natural. The United States is a debtor nation. We are compelled to ship gold to meet payments of interest whenever our exports of agricultural and manufactured products fall short. But our resources are so vast that there is no occasion for apprehension and no need of increasing our bonded indebtedness in order to maintain our credit. That is one thing we should not do. —San Francisco Chronicle.