The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1872-01-27
THE GOLD BASIS HUMBUo.


ducing classes-in which the financial and
land plAnks Of the platform Of the National
Labor Union, have been shown, doubtless
to the writer's own satisfaction, Ia he alike
impracticable and absurd. In the issue Of
the Goth, wherein an attempt is made to
show the beauties, benefits and necessity Il
a specie basis, the following logic is employ
ed to prove his position
Again, there is an incessant cutlery about
the decline in our shipping but what is the
remedy
1t is true that National debt and State
debts of nearly three Thousand millions If
dollars more than before the war, is mill
stone around the neck Of the shipping in
terest, as it is of every American produc-
tive industry but nevertheless true fnan-
cial policy would speedily revive our ship
ping, and in a few years restore former
proportions between foreign and domestic
tonnage.
This may be plainly shown thus Sup
pose an English and an American ship pre-
clsely similar at our wharves taking
cargo, the freight ON each payable in Liv-
erpool E5, 900. The Englishman gets his
TO, 900 and puts it in bank the American
owner has Il, 600 passed to his credit, and
sells here his bill Of exchange for it to some
foreigner who wishes to remit /; he gets paid
IN American currency at 200, that is instead
Of getting $25, OOO, which is all the English
owner gets, he gets $50 900 and puts il in
bank
Then these same vessels return with a
freight list each If SO, 900 payable here in
gold. The Englishman gets his $25, 600
gold, and sends it to England. The owner
Of the American ship sells his so, 900 gold
to some one wishing to remit to Europe,
and gets so, 900 currency. Thus III a sin
gle round trip the American ship receives
500 more than does the English ship
Keep the price If gold to 20, and in
three years there would be scarce a foreign
ship coming to these ports.
Now, after having presented the Guar
dams" special plea at length, (and to our
minds it is a very shallow and visionary one)
let us look at this same illustration from
another standpoint. In steam navigation,
especially, there are three elements, so to
speak, to be consulted safety, cheapness,
speed-in other words the vessel which can
land cargo i'll New York at the lowest
rates, all other matters being equal, COM
mands the market. With this understand
ing We will look at the comparative chances
Of an American and English vessel, the
owner Of the former having to pay, and
consequently to earn, from 10 to II per
cent. for money borrowed the owner Of
the latter being able to command all he re
quires at a third Of that amount.
Let us suppose that two vessels Of equal
measurement are lying at the Liverpool or
London docks waiting for a cargo, and
that neither claim a superiority over the
other An importer in New York writes
to his agent in England to forward imme-
diately a cargo Of -crockery for example.
The agent, as in duty bound, makes diligent
inquiry as to rates, etc, etc. Now it must
not be forgotten that patriotism, in such a
contest, is very apt TO he placed at a dis
count There is little eloquence in logar
Trims, or figures. Cheapness, safety,
speed, stand out in bold relief, above all
other considerations, and he acts according
ly. The English owner pays three or three
and half for money the American pays
twelve What is the consequence The
English captain underbids the American.
pledges to land his cargo in New York at
less than One-half the rates. and in equal
time to that claimed by his competitor, and
secures the cargo. Cause, scarcity Il mon
ey, anA consequent high rates If interest
-REsUL rotting ships deserted dock
yards, idle mechanics, the transfer # our
ocean commerce from the American to
foreign flag. Is the picture overlrawn
Let the q Guardian" disprove H.
A few months ago We published the cor
roborative testimony II a gentleman who
was formerly one Of the largest ship-build-
ers in the United States. When examined
before the Lynch committee, appointed to
examine into the cause Of the decline Of
American commerce said
"The real trouble is-it is against the
cheap money Of Europe, rather than
against its cheap labor that American
shipbuilders have had to contend have
" frequently been asked, when constructing
"a vessel will you invest $40, 600 or
go So, 900 in her. My invariable answer
e for the past four years has been, can
mot. have TO pay ten per cent. at least
" for the loan Of money, and l know that
1.-THE vessel, now building, will not earn
"more than four per cent. on the capital
Invested.
This, then, is the question in q nutshell
1t requires no process, no philosophy, no
professional financier, to explain the cause
The memorable law Of logic furnishes the
answer 1--WE can't take your cargo at the
same rate the British shipowner takes it,
because we have to pay, as interest alone,
twice as much as he asks for freight"
When it is known and understood that
the practical illustration Of the principles
Of the National Labor Union means cheap
money! reduction of interest, the repu-
diation of the gamblers currency-GOLD
and the substitution of the peoples cur
rency-elastic, cheap and inexportable,
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