Mr. Hendrix described at some length the process by which the gold was withdrawn by speculators for shipment abroad, and then proceeded to contrast this with the situation in France, where the Bank of France refused to pay, except where actually necessary, more than five per cent. of gold on its demand obligations. These aggressions on our gold reserve must be stopped, and if the pending bill would stop them, afford relief, take the government out of the banking business, as it has been taken out of the silver business, he would vote for it. “Does the action of the Bank of France, in refusing to pay more than five per cent. in gold,” asked Mr. Hepburn, “impair the credit of that bank?” “No.” “Then would the credit of the United States be impaired if the United States should exercise its discretion and redeem the Sherman notes in silver?” “Yes, I believe it would at this time,” replied Mr. Hendrix. “Why?” “Because of the general distrust of the government’s ability to pay in gold. One hundred and fifty-nine million dollars of Sherman gold promises [?] to pay cannot be met without gold.” “But the notes are redeemable in coin, not in gold,” was Mr. Hepburn’s parting shot. Mr. Hepburn declared that Mr. Hendrix had pointed out unwittingly the remedy for the present evil when he told the House that the great banking houses of Europe exercised their discretion about depleting their gold vaults. “Why will not the Secretary of the Treasury exercise the same discretion?” he asked, amid a round of applause. “The exercise of this discretion did not impair the credit of European banks. Who dared to say that the credit of this country, with 65,000,000 people behind it, and an unlimited taxing power, would be impaired because it refused to kneel at the demands of the Shylocks?” “Why have not the Republican Secretaries of the Treasury exercised that discretion?” asked Mr. Pence of Colorado. “I have not been Secretary of the Treasury,” replied Mr. Hepburn hotly. “When I am I will answer. I am as fully convinced, however, as I am that I am alive, that if the Secretary of the Treasury were now to exercise his discretion and pay gold when legitimate redemptions were asked, and refuse it to sharks and speculators, the evils from which we suffer would cease to be.” A broader view is that the prime motive of the Secretary in exercising his discretion should be the welfare of the government; and gold should be refused where its payment is likely to hurt the treasury. ---------- In the foregoing pages we have attempted to give such a bird’s-eye view of American money and finance as would serve as an example and warning for the future. We behold in this short story how our finances were continually run upon the rocks and shoals of a false “political economy,” so-called, and how they were occasionally pulled off—though remaining most of the time stuck fast in the most dismal way.