The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1879-04-05

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doplorable and 30 universal, is problem
of unusual difficulty in her political
economy. 1t is none the less problem
that will demand solution; or worse will
follow.
We believe that England's demonetiza-
tion of silver must be accepted as an i'm.
portant factor in bringing about her
national dilemma. Her rejection of sill
yer from her monetary system was done
deliberately, and she has clung to it
boastfully. When this was done Eng
land was the worlds banker and mer-
chant. Then it was to her convenience
and profit to compel other nations to
make their payments to her in gold
alone. She was then the only nation of the
world that had rejected silver as money.
She could readily obtain, ut that time,
all the silver she might desire for her
Asiatic trade, at profitable rates of ex-
change, for London bills. The gold itself
would of course remain, together with
all its natural accommodations from the
course of trade, almost untouched
by any external demand. This would
necessarily make England the gold focus
Of the world. And this was just what
she aimed to become; and just what she
did become.
But then came changed condition OF
things. Germany, lured by England's
example, also demonetized silver; and
consequently became a rival in the
worlds market for her needed supply OF
gold. This at once produced counter
current in the flow of gold, turning a
considerable portion thereof into the res
crvoir Of Germany.
Another event happened: The trade
Of America and of France, depressed by
wars, began to reassert itself under the
auspices Of peace. England at once
found herself confronted by powerful
rivals in the commercial marts of the
r world Her trade necessarily fell off
under such competition. Under this
diminution she soon found the balance
of trade setting heavily against her De-
! mands consequently came 10 be made
| upon her gold reserves for payment of
those large balances accruing to other
nations 1t could not be refused or with
held. Then England's financial dis
turbance commenced.
Under such an outward drain Eng
lands money grew scarce, and consc-
qucntly high priced and hard to get.
She had no silver wherewith to supple
ment hor money means. She had con-
fided her all to gold alone, and now was
compelled TO part with that. Her bank
crs were forced to contract Her manu-
facturers became pinched for means
Thousands failed, and tens of thousands
of work-people lost employment, and
were compelled to 90 forth to suffering
and destitution. Such, in brief has been
the working of England's much vauntcd
monetary system, and such the results.
And now her ministry is proposing to
Parliament an investigation to find out
: what is the matter.
: BY discarding silver from the Office of
money, England actually narrowed her
monetary basis, as in proportion to her
, business needs, fully twenty-five per
cent. At the same time that she thus
+ diminished the base, she immensely Ell,
largcd the Superstructurc Of trade, all OF
| which must now rest on gold alone.
From 1918 to 1873, twenty-five years, the
: the annual foreign trade of all nation,
y increased by average 300 per cent; but
. England's increase was 400 per cent
:, within those years. The increase oI
: money during those years, counting golC
, and silver working together, was but II
!. per cent and seven-eighths of this in
!. crease was in gold. The whole amount
f Of the worlds money, and bullion count
4 cd as money, in 1913 WAS s., 900, 100000
q and in 1873 it was 00Oo0,O00. Or
II this money increase of 40 per cent Eng
n land had prcdicated trade increase o
~ 400 per cent. Obviously this was out o
# all due proportion. But, to increas'
a bllat NlNIipIoltl'Il, Tiit NuC VII hNi HiiNNi
v and compelled gold to bear the whole
burden alone. This was like assuming
= that man under burden could stant
is more firmly on one leg than on two.
;r All this might have answered yer,
is well, had England been able to retail
l. her position as the gold focus Of tn
al world, thereby making other nations al
n tributary to her needs as to gold. Blu
?. when this ceased to be her condition, sh
n needed the supplementary power of sil
ver to sustain her gold; and not hayin
.r that, her business affairs fell into fright
d ful confusion, to the infinite detrimen
,r of her national resources and public in
ar dustries She had So narrowed her mon
O. etary basis that her towering superstruc