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The eagle. (Silver City, N.M.) 1894-1???, May 15, 1895, Image 1

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn92070477/1895-05-15/ed-1/seq-1/

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VOL 1, NO. ;-).
fPL1! I MU nv nttirnn
luuuriU nlLV Tilt.
The Colorado Senator Says Some
Sensible Things.
Menu wliMi OiiBht to Set Aim-rkmi Mim-iifiulur.-rH
lo ThlnkliiK Aliimt
tli I'nl lire.
I like to do all the writing and talking
piissiliUt on Hit' silver issue, for I (eel
inore I lian ever that it is a most mo
mentous question, lmt I cannot always
spare (he time. I do more of this work
than I should. The subject is so vast;
ii families in so many directions and
the arguments are so numerous that it
requires care and thought to give in a sin
gle article a single phase of the subject.
The president 's recent letter to Chicago
was an appeal to the supporters of the
gold standard to defend that system bv
proclaiming for it the merit of soundness
and lo declare all other systems unsound
and the supporters of all others advo
cates of a debased currency. In his
opinion I suppose we are advocates of an
unsound currency. It is to he regretted
that the president did not point out to
us some of the advantages of the gold
standard as well as tin possible danger
to the country if we return to the use of
both gold and silver as such Use existed
in the I'niied Slates prior to 1ST:!.
Up lo that time practically the whole
world hail the benelit of the use of both
silver and gold as money of ultimate re
demption. Kngland was on a gold basis
and (lerniany on a silver basis, it is true,
but the mints of Trance were open to
both gold and silver, and Kngland had
the benelils of an open mint. fr silver in
France but a short distance fiom Eng
land's commercial center, while (ier
many has the French mint for its gold.
The Knglishnuin desiring lo put his sil
ver into money could do so either bv
sending it over to the free coinage mint
in France or by rending it to (icrmany
and exchanging it there ii a ratio of
liflecn and one-half ounces of silver for
an ounce of gold. The (crinan having
gold which he wished changed into
money had but to send it to . England to
be coined or to France for exchange into
French money. This was freely done,
and all ihegold aid silver not required
for export from Kurope was coined into
money at. some Kuropean mint. The
United Slates, mints were open to the
coinage of both silver and gold at a ratio
of a little less than sixteen ounces of sil
ver to one of gold, which ratio we speak
of as Hi to 1.
While all the world was not on a bi
metallic basis, all the world had the ad
vantages and benelits conferred by that
system, for Kngland, France, the United
Slates and others were ready to coin all
the silver offered, and this gave gold and
silver bullion a money value equal at all
times to the coin that could be made out
of it. Then all countries by the system
of commercial exchange had the full ad
vantage of the bimetallic coinage.
Head history and tell me where there
is anything to justify the president in
supposing that a return to the condition
of linance existing prior to 1871! would
be fraught, with disaster. The countries
that, have abandoned the use of silver
have not beueliled their financial condi
tion and the linancial condition of the!
world today is much less satisfactory
than it was for many years preceding
1871!. Kxchange has fluctuated to a1
greater degree since that year between
silver-using and gold-using countries
jand now seriously threatens to transferí
the manufactures of Kurope ami Ameri- i
ca to Asiatic countries. j
I will state this as a propositoin: If I
the gold price of silver falls in the gold;
standard countries, the price of exports
from gold standard countries must either j
fall in the country w here produced or'
rise in the country to which the exports
are sent. Silver-using countries must
pay more silver for imports from gold
standard countries or the manufacturers ;
in gold standard countries must reduce1
the selling price of their wares to meet :
the decline in the relative value of silver !
t i gold. That is the situation presented i
the manufacturers today. Prior to 187.'! ,
fifteen and one-half ounces of silver were I
equivalent to one ounce of gold. Then j
the Knglish exporter to Asia received I
that amount of silver, knowing that he
could certainly convert, it into gold with
out loss upon the stable ratio. It did
not change by daiiy market fluctuations.
Now, mark the change. Tin lay, accord
ing to the present price of silver.it lakes
something like thiity-oneounees of sil
ver to secure by exchange an ounce of
gold, instead of fifteen and one-half
on i ces, as w as the case before 187.'!. If
the exporter should attempt to maintain
his old price after silver was demone
tized, he must require of the silver using
purchaser more than the amount of sil
ver heretofore paid for his product, sub
ject to the fluctuations of silver based
upon a gold measure, which is now, as
you know, reduced to one-half its former
exchange value. What is the result?
The silver buyer of the Englishmen's
wares must either refuse' to buy, must
pay the increased silver price or must
manufacture for himself in his own
country. What did he do? l!y a refu
sal to buy he forced the Knglishnian to
reduce his price. The importer contin
ues to buy with his silver, but to thedis
aster of the Knglish manufacturer, who
connot make a profit at such reduced
Suppose the Knglishnian could not af
ford to reduce his prices to the full de
preciation of silver measured upon a
gold standard he must advance his pri
ces in exchange for the foreign impor
ter's sil vej', and then the silver paving
customer complains of rising prices.
This leads to the manufacture of these
articles in the silver using countries
where the manufacturer is satisfied to
take silver at its old value, and thus the
market for the gold standard producer is
destroyed. That has been the case in
Mexico, India, China and Japan, and
doubtless more marked in Japan than in
any other country.
It looks now as if Japan might become
the great manufacturing country of the
Orient if not of the world. Its popula
tion is quite as skillful in manufacturing
as is that of Kngland. Japan has the
advantages of a better climate.of cheaper
lalmr, oí an abundance of cheap iron and
coal; her products can be sold in China
and India on a silver basis with profit,
and even in Kurope on a gold basis at a .
figure less than any Kuropean country
can mi.iiiil'acture them. It may be said
that her manufactures are not sullicient
ly perfected to compete with the Kuro
pean manufactures. This may be true
in many articles, but not as to most ar
ticles; and as to tho.'c not yet perfected,
the patience and skill of the Japanese
will soon secure for their manufactures
the same excellence that lias commend
ed Kuropean manufactured products lo
both Kuropean and Asiatic consumers.
It must be borne n mind that labor
has not fallen in India, China, Japan
and other silver standard countries, and
that one ounce of silver bullion will buy
as much lajior now as it ever did. This
is true nb'o of all the domestic supplies

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