The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-01-12
A POLICY OF RUIN.

Aaxgarct Aen0s WMnamsOurg, N. Y............lO7
ArA Sarah Mosclsy, Madison, Ind. .............1ii
Gabriel Whits, Pqua, Ohio. .................io0
A POLICY or RUIN.
[from the Chicago Tribunel
Doubtless Secretary Folger thought
when he recommended the retirement
Of silver certificates, the discontinnance
Of the coinage Of silver dollars, and the
abolition Of the greenback ~ legal ten
der, that gold would continue TO flow to
these shores from England, France and
Germany forever. Doubtless, had he
been familiar with the laws OF
trade and finance, he wonld h:vc
thought no such thing. 1t is BY
no means improbable that before Il
year gold will be flowing the other
way. Already our agricultural exports
have fallen Off considerably by reason Of
short crops, and they will likely fall off
largely during tho year 1882. Meantime,
inflated prices here tend to stimulate
imports. With growing volume Of
imports and decreasing volume Of cx.
ports, the balance Of trade will soon he
against lis, and gold will begin flow
out to Europe. Menaced by this pros
pective safe Of trade in the near future,
the Secrctary's recommendations are
simply suicidal. Should they be adopted
even now, n panic would inevitably re-
suit and their adoption simultaneously
with the establishment OF m adverse
balance Of trade would certainly pro
duce commercial Revision If the
most widespread md serious character.
The price of commodities is measured
by the quantity Of the circulating me-
dunn. In the case Of the United States
the quantity has been largely augment
ed by All inflow Of foreign gold-an in
flow continuing for years, aud prices d
commodities have advanced accordingly.
But they have now advanced to point
which tends to check tile inflow Of gold.
Purchasers Of commodities avoid dear
markets, and, Ms the scale Of prices nj
yances the volume of exports decreases.
The United States is no longer favoya-
lie market in which to buy; hence the
exports fall of. On the other hand, it is
an excellent market it which to sell !;
hence the imports continue to be lnrge.
The movement Of gold between coua-
tries holding commercial relations regn-
lates itself. Into the cheap market
everybody rushes to buy. leaving gold
in exchange. Soon the cheap market
feels the stimulus Of its increased vol
ume Of circulating medium; prices go
up until at a certain point-the point
above the average Of markcts-:hey he
come prohibitoly Of sales. I'll gold
cases to flow in, because commodities
cease to be exported And as trade is
never in exact equilibrium. the gold
which has been flowing in soon begins
to flow ont to pay balances incurred for
purchases, and decline in prices sets
in, which will be in approximate ratio to
the decrease in the volume of circulating
medium.
This latter is the condition Of trade
which VIC are approaching. Our exports
are checked by the growing dearncss of
our markets. But our imports continue
large for the very same reason that our
exports decline-namely the high price
OF commodities. For high-priced com.
| modities involve high wages, and high
wages stimulate consumption Of foreign
goods. In word, we eat, drink and
wear rs much as ever, but produce no
more than formerly-consume rs much
and sell less.
In the face Of this prospective sitna-
ton, now near at hand, the Secretary Of
the Treasury proposes arbitrarily to re-
ducc that portion of the volume Of our
circulating medium which would remain
at home to arrest or modify the decline
OF prices which must inevitably ensue
upon the outflow Of gold. In word,
the Secretary proposes to burn the cur
rency candle ut both ends. While Eu-
rope bleeds one arm Of the patient Mr..
Folger would bleed the other. The re.
suit would Of course lie exhaustion.
The decline Of prices resulting from
tho drain of gold would he supple
mcnted by further decline caused
hy the suspension Of coinage Of tie
silver dollar, the withdrawal Of the
Of the legal-tender feature Of the green
backs. The value of commodities would
depreciate rapidly and the value of
money would rs rapidly appreciate. The
creditor class would have everything its
own way and the debtor class would be
ruined. The squeezing process Of 1873
and the years following would be re-
peated on a grander scale, aud the wrecks
Of industrial and commercial en-
terpriscs would be administered
upon by the sheriffs and the
courts. The money LENDER and the
mortgage would be happy. Coats and
hats, and boots and shoes, and bread
and meat would be cheap, but labor
would be cheap, too, and scarce, and
there would be more hungry, ragged
people in \ singh. great industrial center
Of the country than there arc now in
the whole land.
Secretary Folgcr invites bankruptcy
md it's concomitant poverty, misery
md despair.