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production of gold is increasing with very great rapidity, going from $131,000,000 in 1891 up to $200,000,000 in 1895. Of course we have no means of ascertaining the amount of commercial gold in India, or any other "silver measure of value” country; but India has exported more than she has imported from the years 1891 to 1894, inclusive, $22,000,000 in gold, and produces none.

With a balance in trade in favor of India in 1891 of $183,000,000, she also imported $11,000,000 of gold. In 1892, with a balance of trade in her favor of $191,000,000, she exported $13,000,000 of gold. In 1893, with a balance of trade in her favor of $134,000,000, she imported $3,000,000. With exports over imports of merchandise in 1894 of $168,000,000, she exported $23,000,000 of gold.

The United States in the same time has exported in excess of her imports of gold the enormous sum of $180,000,000, but she has only depleted her store of visible gold by $38,000,000, as she has produced $142,000,000 in gold.

What, then, do these gold tables and gold figures prove, especially with the example of the Bank of England before us? Absolutely nothing, excepting that the statements made as to the causes of the actual movement of gold bave not the slightest foundation in fact,

Second. That just so far as the credit of the banks is above the slightest suspicion and interest rates rise above the normal level will gold flow to them, and that just so far as there is a doubt on the future ability or inclination of bankers to pay gold, or as they reduce interest below the normal level, will gold flow from them.

Third. That trade is in no wise between nations, but is always between individuals, and knows no national boundaries, tariffs or no tariffs, excepting as tariffs help or hinder trade between individuals in one country and individuals in another country; that it is arrant nonsense to talk of the boundaries of a country having any more relation to the movement of gold than do the lines of latitude or longitude.

Space will not allow a thorough analysis of the gold tables. Study. ing them, any candid man will be convinced beyond question that they dispute every popular theory concerning gold and show it praccally to stand still in every country, without regard to trade balances or whether the countries are what are called "debtor countries" or “creditor countries,” and that each has the gold necessary to each country to carry on the foreign commerce of the country, whether silver or gold measure of value countries.

Gold measures value in exchanging paper obligations, which are potentially products themselves, precisely as do scales and measures in the warehouses of countries, and this regardless of whether the country is a gold measure of value country or silver measure of value country. APPENDIX A.

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1891 1892 1893 1894

$233, 105, 400.00 $24, 032, 518, 00 10.31

112, 831, 161.00 52, 541, 028.00 47. 45
121, 644, 306.00 36, 334, 704.00 20.12
129, 360, 636.00 67,771, 353.00 52.38

$135, 900

129, 700 185, 300 185, 300


Average. 149, 237, 625.75 45, 419, 900.75,35.06

159, 050


$11, 434.334. 00

1891 1892 1893 1894

3,037, 582.00

$183, 516, 680

191, 014, 147 $13, 323, 679.00 6.97
139, 688, 254
167,749, 514 23, 562, 684.00 14.01


7, 235, 958.00

170, 499, 649 18, 443, 181.50 10.50


The monoys held in Treasury, in excess of the gold and silver certificates, in the ten years from 1881 to 1890, averaged...

$288, 135, 914 Great Britain in the same time only held exchequer balances in the

Bank of England and Ireland of between $20,000,000 to $30,000,000. It cost our people at the average annual interest on Government bonds to the same amount for that period..

11,488, 792 The cost of maintaining independent Treasury was..

750,000 Total waste....

12, 238, 792 At rates of interest paid on Government bonds it cost the Treasury,

included in above figures, to carry the gold reserve from 1879 to 1895, seventeen years (Appendix P, p. 53).

144, 241,556 Average for each of the seventeen years..

8, 484, 209

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Paper money kept in circulation averages to be worth 6 per cent to the banks. Legal-tender notes, $246,681,016, at 6 per cent....

$20, 800, 861 Treasury notes, $139,582,680, at 6 per cent

8, 375, 021 Silver paper certificates, $344,327,504, at 6 per cent.

20, 659, 650 National-bank notes, $212,615,186, at 6 per cent.

12, 756, 911 A gross loss of ....

62,592, 443 On this Joss the people saved in interest on$212,615,186 worth to banks, .526 per cent ...

$1, 118, 356 $346,681,016 worth to Government, 2.5 per cent

8, 667, 025

9,785, 381 Total loss to the people in abnormal interest....

52, 807,062 Add to this loss the direct loss in interest on large balance of cash carried in Treasury and unnecessary expenses..

12, 238, 792 Total loss to the peoplo

65, 015, 854

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The system in European nations is quite in contrast with that of the United States. Mr. Ford, Treasury statistician, gives me the following figures for Great Britain: On January 22, 1896, the issue department of the Bank of England was carrying a debt of the Government of £11,015,100.....

$53, 605, 984 The bank receives 24 per cent on this debt....

1, 474, 137 The bank is allowed certain commissions by the Government for col

lecting and disbursing public moneys and is charged for certain privi. loges and exemptions, which bring it in debt to the Government in the account to about....

826, 171 The net cost of the treasury management to the people of Great Britain is the sum of (including interest on above debt)....

647, 966 Against a cost to the United States of management of Treasury of.... 12, 238, 792 Aud an indirect cost to the people in addition and abnormal interest on loans and discounts of

52, 807,062 Total...

65, 045, 854



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