The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1875-11-13
THE CRIME OF
Incompetent GOVernOrShip
As ILLUSTRATED BY THE
Recent Monetary History of Germany.

| r., the Editor ~ TuE WoFKINGNAN's ADVOCATE.
| SIR The German Empire stands to-day
| indebted for its existence To the Zollvereln
or union tariff. under uhich more than
half a century ago, was irauguraJed sys-
tenn Of protection against the outside world
! a.l N free inter state trade among the
states comprising it. Under the teachings
If the political economists, however, these
states have for some Years past been gra-
dualy abandoning protection, and embrac-
ing a British free trade policy.
When in 1871 the treaty of peace was
made which obliged France to pay to Ger
many 81 IO0, 900 900 AS a war hne, the
German government assumed that Ter
many was about to receive substantially
this amount in specie and bullion. The
German people thought the same, and
these latter, being enterprslng, at once
embarked in all kinds of industrial, mer-
camille, and financial operations. But
what however, was the actual result
Only a small portion Of this fine was paid
by the transfer Of money to Germany
The French government itself directly re-
mitted but 500 0OO, 900 iii gold and silver,
and the largest estimates Of the total
amount Of specie in all sent from France
for the purpose of payment Is less than
S24O. 900 900. Some went direct fr Jm Eng
land to Germany, but by 1874 the move
ment Of specie as from Germany to Eng
| land During 1873 it has been to a
| trifn0 extent III favor Of Germany. The
| bulk nf the payments were made by the
| French government in bills of exchange,
many III which were drawn against exports
cf merchandise t. Germany and other
countries. OF the actual money paid to
the German government la1ge portion
came from the German people and for
which they only received foreign merchan-
! disc. This money was for a considerable
time locked up in the imperial treasury,
and the immediate effect OF the payment
! Of the fine was, therefore, to the German
people, rather one Of contraction than OF
| expansion.
But, still further, on receiving 1t Ter
many determined to adopt new coinage
with the gold standard, using silver simply
for subsidiary purposes. In accordance
with this scheme, by the end OF August,
| 1879, 1863, 900, 900 Of silver, nickle, and
conner CONS had been withdrawn from
circulation. and but S36, 900, 900 issued .
and the government has recently been
shipping silver to India to get rid OF 1T,
thinking itself very smart in selling 1t at Q
per cent. discount before it's further de-
probation in Europe. In addition to this,
on Januarr 80, 1875, it caused to be passed
a bill providing for a great central lmperi-
al Bank under the control of the Chancel-
lor Of the Empire, and for the Withdrawal
Of all notes under 100 marks 1921 The
amount Of these notes was then S134 900,
600. of which 800. 00O 900 had been with
drawn by August 81, last. This amount
has been largely replaced by notes OF
higher denominations, bnt 1t is impossible
to overestimate the baleful effects of the
retirement Of Sl23, 600, 900 of small coin:
and Of paper under S25-the currency oi
the people.
The imp rts Of merchandise into Ger
many have 50 far exceeded the exports
for several years past, that, while t.
August q, 1875, S289, 900, 900 Of the nev
gold COINS had been coined, it was severa
months since estimated that from 81 3, 900,
600 to 800, 600 900 of this money had thel
already been exported. The draft ha
fallen thus heavily upon gold, because
sifice the determination of Germany to de
| mOnGIlZe eliNcE- lnc ldil III OliS pIICS VI lil
latter IN Europe has been 50 great tha
there would now be loss of from z to
per cent. in exporting old silver tn alers
{ Notwithstanding the fact that they are Z
be allowed temporarily to circulate l
coiamon with gold after January l, 1876
when the gold standard is to be adopted
During 1874 France alone drew dlrectl
from Germany nearly SAG. 900, 600 Of gol
and silver. and it is now believed holds a
much OF these metals as she did before sh
began to pay the fine.
The results of these tamperlngs with tn
, currency in the midst of Tree trade pOlC
are well known Germany has been tt
. scene of crises and continued depression
business for two years past, and Phil
delpnia paper of Friday last contained II
toll"wing paragraph
The London Morning Post of Octob
23 has Berlin despatch of the 22d, sayiT
the depression of trade Is so keenly felt
the industrial classes that the governmel
!. has been requested, as a means OF preven
e ing acute distress, to resort to the measu
5 successfully adoI ted in the last two war
~ namely, the establishment Of loan bank
"he government has not rs yet show
much inclination to accede to the reques
Serious distress is anticipated among Il
20 industrial working classes during the col