The new "gold standard" that would be established by the outflow of our gold would be a standard of prices resulting from the influx into England, France, and Germany, the principal gold-using countries of Europe, of more than $600,000,000 of money.
So considerable an addition to their money-stock would raise prices in those countries, and by remaining there, would, with the current production, which we could spare to them, tend to maintain prices at a steady level. Such a condition would be an inestimable boon to the overburdened masses of Europe, and their prosperity would not be attained at the expense of the people of the United States. We could well afford to let gold go, since, by the coinage of silver, our own money volume would not be reduced. The rise of prices which it would effect in Europe would not only, as I have stated, secure better prices for our exported goods, but would undoubtedly enable us to maintain prices here at a substantial parity with those of Europe—that is to say, with those of the new, more rational and more beneficent gold standard which would be established by the full remonetization of silver in this country.
PRACTICALLY NO GOLD MONEY IN THE UNITED STATES.
But, aside altogether from this consideration, the gold that we already have is really a surplus—it is practically a dead and useless article. Gold, Mr. President, can not with entire truth be said at the present time to form any part of the money of this country. Who but a bank clerk ever sees a gold piece? With the exception of a few million dollars on the Pacific coast, gold is not really in circulation in this country. It is performing no useful function whatsoever. While I am engaged in delivering these remarks I venture to say no Senator within the sound of my voice has in his pocket a single gold coin of any denomination whatever, or any paper representative of one.
This is the answer to the fear expressed by some Senators that when those who hold gold shall observe the enlargement of the money circulation by the issue of the proposed Treasury notes they will be likely to hoard it. They are already hoarding it. Every body knows that that is about all that gold is used for in this country. It is hardly possible for it to be hoarded to any greater extent than it is at the present time. So little is this metal in circulation that I do not deem it any exaggeration to say that there are millions of people in the United States, "native here, and to the manner born," who have never in all their lives seen a gold coin.
How absurd, then, is the claim that any loss is to be suffered by the alleged future hoarding of gold, or that any calamity can occur to 65,000,000 people by the disappearance of that which has long since disappeared.
THE ARGUMENT BASED ON OUR BALANCE OF TRADE.
One of the staple arguments of the advocates of the single gold standard is, that if our stock of gold were greatly reduced we should be unable to make payments to foreign countries in case the balance of trade turned against us. It is only through an excess of imports over exports that gold could go, and this country now produces of nearly all articles almost all that it consumes. With the exception of two years there has not been a balance of trade against us for fourteen years, as the following table will show:
Value of merchandise imported into, and exported from, the United States, from 1876 to 1889, inclusive; also annual excess of imports or of exports—specie values.
| Year ending June 30— | Total exports. | Total imports. | Total exports and imports. | Excess of exports over imports. | Excess of imports over exports. |
|---|---|---|---|---|---|
| Dollars. | Dollars. | Dollars. | Dollars. | Dollars. | |
| 1876 | 540,384,671 | 460,741,190 | 1,001,125,861 | 79,643,481 | — |
| 1877 | 602,475,220 | 451,823,126 | 1,053,798,346 | 151,152,094 | — |
| 1878 | 694,865,766 | 437,051,532 | 1,131,917,298 | 257,814,234 | — |
| 1879 | 710,439,441 | 445,777,775 | 1,156,217,216 | 264,661,666 | — |
| 1880 | 835,638,658 | 667,954,746 | 1,503,593,404 | 167,683,912 | — |
| 1881 | 903,377,346 | 642,664,628 | 1,545,041,974 | 259,712,718 | — |
| 1882 | 750,542,257 | 724,639,574 | 1,476,181.831 | 25,902,683 | — |
| 1883 | 823,839,402 | 723,180,914 | 1,547,020,316 | 100,658,488 | — |
| 1884 | 740,513,609 | 667,697,693 | 1,408,211,302 | 72,815,916 | — |
| 1885 | 742,189,755 | 577,527,329 | 1,319,717,084 | 164,662,426 | — |
| 1886 | 679,524,830 | 635,436,136 | 1,314,960,966 | 44,088,694 | — |
| 1887 | 716,183,211 | 692,319,768 | 1,408,502,977 | 23,863,443 | — |
| 1888 | 695,954,507 | 723,957,114 | 1,419,911,621 | — | 28,002,607 |
| 1890 | 742,401,375 | 745,131,652 | 1,487,533,027 | — | 2,730,277 |