The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1872-11-09
WAYNE COUNTY. IND, NOV.
THE GOLD PROBLEM !.

THE GOLD PROBLEM. 4
The discussion seems to have
been revived both here and in .Eu- 7
rope. as to the amount of gold
which has been added to the coin
age Of the world in the laat twenty
years, and as to its effect upon the
whole mass. This is relied on also
by the hopeful, in regard to our
currency, on the ground that the
depreciation of the two must be
about equal.
Now, assuming that the amount
of gold coinage has been doubled,
it by no means follows that it has
deprecated one-half. The demand
for money as an agent in produc-
tive enterprises all over the world
has increased fully as much. In
fact, the increase of money has
been much greater than that OF,
gold. The substitute for money
in the form of government notes
and baLk notes and deposits, being
all of them just as effective as gold,
have increased probably as much
as gold itself. And yet, according
to Mr.. Jevons, gold had in 1868
epreciated but Is per cent. pro-
portion which, whether true or not,
Is quite in accordance with proba-
bilities.
The point of Importance for us,
however, is the real relation be-
tween gold and our currency; be-
tween the general ocean level of
the world and our particular bay.
The absolute height of either is of
little consequence. 1t is proper
ton only to which we should look.
Our currency of gold, bank notes
and bank deposits stood before the
war at about $50 millions of dol
lars. That of legal tenders, bank
notes and bank deposits, now
amounts to about thirteen hundred
millions. The element of rapidity
Of circulation comes in, however,
to complicate the question, having
quite as much as quantity to dc
with depreciation. The inconvert
ible currency circulates far more
rapidly than the convertible, ant
the clearings of the New Yorl
banks, which, before the war, neve
yielded nine thousand millions an
nually, have in the las: three year
averaged thirty thousand millions
II, therefore, the gold currency o
the world had deprecated one-hall
we should still be behind in th
race.
We fully admit that this conclu
sion might be modified by an az
curate statement of the expansio
OF demand for money in bushes
in this country as compared wit
the rest OF the world; and ther.
fore conclusions of depreciatio
are not to be accepted withor
strong confrmasory evidence, ,wbic
evidence. however, is untortunatei
only too abundant. A greater re
alive depreciation Of our currenc
than the price of gold would ind
cate, must result, as we have ofte
pointed out. in adverse, foreie
) trade. That the latter does exi
: is shown by foreign debt of f
teen hundred millions, increasir
at the rate of one hundred and fit
, millions or more year. Til
. debt, while indicating depreciatit
Of our money explains at the san
. time the continued low p ice
3 gold. A spendthrift never fec
. any embarrassment while his ere
: itor is willing to renew for DO
I principal and interest. But I
9 creditors ability is an element
! the account as we'll as his incIin
g ton, and the exhaustion of the o
d as we'll as Of the other may bril
} on the final crash.
Z While we are ready 20 join
5 warning the country of the DANCE
;. to which the present state of thin
u exposes it, we recur to the positi
i that a general discussion Of rem
dies is merely beating the air. '
q repeat, the matter must be intru
- ed to one mind, who, as Secreta
/ of the Treasury, should bring Fl
u ward his plan in Congress for op
70 discussion. If he is especia
/ weak, he will go down; but if stro
e enough to stand the encounter,
= will get chance to put somethi
8, definite upon trial.-B Boston Da
u Advertiser.
1.
y In the days of question books |
/. uMothor Goosan n hricht Inv moro