Capitalists and financiers -- Fiction; Gold -- Fiction; South America -- Fiction; Wall Street (New York, N.Y.) -- Fiction
Even Congress had shown some disposition to search the mystery. A
booming stock market is usually considered the best proof of “good
times” and general prosperity, but discordant voices raised here and
there suggested that it was not altogether an unmixed blessing. So a
drag-net inquiry was proposed at Washington, and it probably would have
been ordered had not the day of adjournment been so near. The point most
dwelt upon in Washington, and in financial circles too, was the
marvelous increase in the country’s supply of gold bullion. Fully ten
millions per week of what was described as new or foreign gold had
passed through the New York Assay Office. The announcement had just been
received that a single deposit of nearly $25,000,000 had been made
within a few days. This movement of the precious metal nobody had been
able to account for. There had been no importations in the ordinary
way. On the contrary, the flow of gold had been in a steady though not
large stream out of the country, for the most part to London. The news
of the last large deposit had led the House of Representatives to ask
information upon the subject from the secretary of the treasury. The
answer had been that the recent unusual deposits had all been made by a
single firm of brokers in New York, but the government did not know who
the brokers were acting for or whence the gold came.
The subject was discussed for some hours, with more or less wisdom, in
both branches of Congress. Naturally it revived the by no means buried
silver question. An increase of fully twenty-five per cent in the
country’s supply of gold, the silver advocates argued, should be
followed by a proportionate addition to the monetary use of the despised
white metal. The mints were working at fullest capacity turning gold
into coin under the Free Coinage of Gold Act. Surely a country with such
a plethora of gold, in spite of the croakings of the monometallists less
than a year ago, could afford to admit some silver to the mints to take
its chance with the more valuable metal.
This special pleading had no influence upon the supporters of “sound
money” theories. It was solely because silver had finally been
demonetized, they pointed out, that the country was able to retain its
increasing supply of gold from whatever source it had come. The great
increase of the precious metal was not in the government Treasury, but
in private hands. It did not strengthen the government credit, which
would be ruined if it should open its mints to silver.
Nobody was quite able to demonstrate clearly even to his own
satisfaction that either side was entirely right or altogether wrong. So
the arguing convinced no one, and nothing came of it. Congress adjourned
on the 4th of March without meddling seriously with a matter which it
did not understand.
Public-domain text, read in full here on John Shaqi.
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