, 1879-07-14

HUI WIN IlAfD HtA4 CAOAEA tANAu k9 4pAE A9
they can will bo tho wisost.
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BRITISH LOSS FRoM SILVER DEM0NETI-
ZAT1ON.
Some months ago Iii. EDWARD LAsaTnT,
Of tho firm of BLAKE Brothers Il Co., LON
don, road paper on tho silvor question be-
foro tina Manchester Statistical Society. Tho
pnpor, which ia ably writton, has m addi-
tionnl interest from tho fact TINT it takoa a
British viow of the Objects upon British In
torosts Of the recent decentralization Of sil-
.ver, mud points ont that the so-long- -boastod
adoption Of the snglo gold standard by Great
britain III 1916 Inns proved to ba Mt lust tile
sourco Of great loss to Grnat Britain by tho
destruction Of hor trade and tho impovorish-
1ncnt OF her customers,
Alr. LANarnY explains most clearly how
England escaped tho i'll elects of tho single
gold stnuilartl, aud how ct last tho defect OF
that system waa brought practically to viow.
Up to 1876 tho inne1ible gold standard
worked we'll, and mono-metallists hnvo nsed
this faet for all 1t is worth and, as 1t soems,
for much moro than it was worth. The cir.
oumstnnco that the bi-,netalic System Of
Franco noyor was sufficiently considered as
bearing on such result, until in 1876 it whs
fcrobly brought to view, Is conc!1siyely
shown. During tho period from 1916. to
1876 tho defects Of Tho Binglo gold standard
vero concealed, but were disclosed when tho
decentralization OF si1yor by Germany letl to
tho suspension Of the law permitting unlim-
tied coming and untinitod lega1-tondor of
silver IN Franco aud tho Latin Union.
Tha action Of TINT Union WINS o measure
OF self-tlefonso. At that time there waH n
strong effort mnking to effect general
demonstration Of silver. Had franco not
closod tho markot'at that ti1nc, temporarily,
to tho coinago Of ailrar, tho delnonetized
mass would hare been rushed into her miDts
md hor gold would have beon takon from
hcr. She vonll hare fnunt1 herself hollng
alono the money which Europe nnd tho
United Slatos fad denounced as not being
snonoy. Franco, therefore,, in 1876 sus-
pended tho coinngo Of silver, and sincs thon
Inns claimed payment to Aor of all fcroigu
debta in gold. htr. LANa1nY thus discusses
tho efFcct Of this action on England, md e1-
plaius how the dofocts OF tho net Of 1916
Ind bean SO long aad so successfully cou-
cealod, Ha says:
t'I}ut this act Of Franco at oncc revealed tho
evils Of the English gold standard. The trade Of
England Ia universal. and mostly no with silver
Countries, cs,-resu1tMg In considerable balances Ut
trade either for OF asalnst thiy cuunt.y,-a{l such
balances due By, or to, silver using countries hny-
ing been up to 1A79 arranged with q beautiful
simplicity by means Of tho French oi-metalllo sys.
len.
"Francc, having bl.mctal!lc syatcm, was the
medium Of supply md demand In settlement Ut
that Which was owing to England or by England
with her eyer-using clients. This system, 70
simple that you may nay It's working WIS unseen
md almost unknown, ca.uo rudely anl suddenly ia
IN end iu 1876, when Franco suspended hur law
IN tho matter of tho FREQ coinage OF
silver, and England then found that her
trado with her siycr.us1nR clients
was at ouco parniyzed: but tho 'diaeass,
| not being understood. waa therefore not tmmo-
! dIately apparent. Two years mud lialt Of dill
cult ard unromuncrat!yo trade t,as, however, malo
clear and apparent that which nt tlrst was inds-
tiact; md think may now, In 1870. assort thas
tho trade Of this country With silver using nations
| IL paraIyzclt.
"prnctlcal1J, Europe md England are. .nt this
mnmrnt. and for tho hret ttmo within tho range 0t
their history, In that haven Of bliss, according to
mono- -metaEsts, universal gold a'andard, Silver
Is no 'nnEeF Menoy. Aor ts II any longer available
IN set'ement Of ka1opcan International trade eal'
~ @ .a"s us no1% .,nna
ard, 11ow tar rcauts neat out .Aa predictions ia
open to doubt, TO the best Of my Judgment and
bolIof. nothing can b. moro grave and serious than
1ae ssato o. mastots @ wn!cn naa tesatsea rom INC
% s:fb, - sdyocates Tor tho general T apul,eatio, ao
throughout Eu,ops Of s'nele gold STANDARD roly
mt fnjte Ill
eaFaoa s.!ses o. Eatonss ana wo a!a snow. under
, nnI tns war,a India md ch,ns % a,a ahso,h s an,
millions Of tho metal. hut tho worlds prosperity
Was simple consequence Of Tho distribution Of
gold from calilotnsa aaa Aus.ta,n' anu god Itself
ma'u ia WY ~ - ,a. a' aru Eu'uA @ nau
ba;nr both .llyes.usng Countries, ii followed Az
natural consequence that France. with her