The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-02-28
The New German Currency.

On the first day OF January law in
volving radical transformation OF the
circulating medium became operative
throughout the German Empire. Contra
ry to the advice Of some eminent econo-
mists the old thaler and its fractional sill
yer coins have not been absolutely inter-
dicted, but their use is trammeled by re-
strictions which must eventually with
draw silver from circulation. Hener-
forward for oil practical purposes tho
mark will be the uuit Of reckoning, and
gold will be the standard Of value in the
German monetary system.
Since the spring of 1873 no measure has
claimed more earnest attention from intel
ligent and patriotic men in the German
imperial Parliament and the country at
large than that which has just been con-
summated. II wns carly demonstrated
that n reformation Of the currency would
notably lower the rates of foreign ex-
change and thus decisively further the
commercial interests of the nation.
The melancholy contrast in respect of
material prosperity which since the close
of the late war Germany has presented
to her defeated and plundercd enemy has
naturally provoked her statesmen to
investigate the causes and remedies of
the phenomenon. The fundamental and
controlling source of financial depression
could not be reached by summary legisla-
ton. Certain natural products, including
wine, and many articles OF manufacture
conducive to the comfort and luxury of
life-the fruit of skilled and artistic labor
have nj all times been drawn from France.
To Offset the debt incurred by this largo
consumption, the grain exports of Dantzic
were never adequate, and long before the
Franco Prussian war the balance of trade
was uniformly against Germany, the de-
felt of course being made good by trans
fer of specie.
Since the payment OF the French in
demnity, however, n sort of plethora
seems to have paralyzed German industry,
whereas luxury and extravaganza have
experienced "a feverish development aud
the demand for the products of the French
loom and workshop has proportionately ill.,
creased. On the other hand, the produc-
tive energy OF france, stimulated to extra
exertions both by augmented burdens and
the incentive of a more active market, has
acquired unprecedented expansion. I'm
der these circumstances, the obligations OF
Germany have grown more onerous with
every year, and the difficulty of liquidat-
ing her balances more irksomc and
insuperable. The ultimate effect upon
both parties of the indemnity exaeted
from France, appears TO confirm the Socra-
tic maxim, that it is better TO suffer injury
than TO innict it.
In the case of Germany, whose natural
products are well nigh stationary the con-
ditions determining the balance of trade
can only be modified by the patient devel-
opmont of domestic manufactures. a
deprecated silver currency, however, con-
stituted secondary cause which has sen-
sibly aggravated the plight of the German
consumer. The specie forwarded TO
France in liquidation of balances was sub
ject to heavy discount upon adjustment
to gold standard, and, in addition, to the
cost of transportation and OF melting
down into bars available for the English
market Its value, moreover, was con-
tinually fluctuating according to the rate
of the day in London, which has become
an emporium for silver, collecting ii from
Europe and America and shipping it TO
the East. Here, at all events, was n source
OF commercial embarrassment with which
legislation was competent TO deal; and
there is no doubt that the reform now in
augurated will put an end TO the losses and
annoyanccs inseparablc from any none
tary system whose standard of value is
mutable and indotcrminate.