The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-03-02

she innuence OF silver domonetiZation
IN other countries, and the h0stil-
NY OF the treasury and the baaks
to silver in this. But thas the coptiu-
ued coinage of silver at the rate of S2S-
100000 wear will drive gold out of cir.
culation in the near future, or force Il 10
a premium, does not, to thoua, seem to
90 sustained by the facts or sound reas-
oning. The total volume of currency
in the United States, outside of gold, Is
less than S750,00O,0OO. 1t is believed to
be principle of economy Of
science perfectly we'll settled.
that il the volume of S750,000,000 Is not
sufficient in itselfto maintain prices at
the worlds levee ofprices, as evidenced
by the fact that $600,0O0,000 of gold, a
considerable part OF which at
either in the form Of certificates or coin,
row stays here, 1t will go away only
when prices become lower elsewhere
than they are here. 1t is believed,
therefore, that no such crisis
as has been forotold can
oyertake us under existing conditions.
II is not believed to DO In the power Of
all the banks in the country, even il they
were so disposed, TO take gold out of
circulation and hold it for any
length of time at premium. They
must first lock up the worlds money
and arrest the worlds commerce. Nor
can paper or silver certificates,
now In circulation side by
The gold can be expelled only by forcing
into circulation, in addition to The $780,
10000 either silver or paper equal to the
entire volume of gold now in circula-
tion. In that manner, under Mr., Grosh-
am's law, gold might be eN-
PEELED and probably would be.
1t IS doubtless true, too, that il
tho population and wealth in
this country were at stand
still, then the continued coinage
of silver in sufficient volume would in
time expel gold from circulation;
but as long as population
and wealth go on inoreas-
ing, then the conditions of
the problem are changed. In fact, in
order to preserve stable ratio be-
population and wealth, an
annual increase OF not less than SAC, ,O0O,-
600 in currency Of some kind Is now
required. In other words, tho in.
crease in population and wealth
calls for an addition to our cir
culati0n Of at loast $l0,000,0OO a
year. II, while these conditions
the rate rate of only s2s'oOo,ooS CS'nS' n year, r.,
there is left slill "a considerable
void to be filed with gold.
This is the reason why gold
has increased In the country steadily
since the law OF 1878 was passed,
and why gold has increased
by nearly SH,000,000 during
the last year, and is now increasing at
the ratio ofnearly $l,00O0O0 month, not
withstanding tho depression Of fbusinoss
there is to-day more gold in the country
than there over was before
in its whole history. Another
fact is, that SSO,0OO,OOO in the treas
ury was put there Of gold in exchange
for silver certificates. The i'm.
mediate effect OF stopping
the coinage of silver must necessarily
be TO lower tho price of silver bullion
and gradually to appreciate
the value of gold the world
over. The difficulties in the way ol
establishing an international ratio
so much desired, or roadjust.
ment of the relative value Ia
gold hero, would thereby increase. How
II ~ possible for such things tc
take place rs are predicted IN the
lhsJ pdIdEIdpu VI inc lettOi
1t is dlficult TO see. Gold is to be with
drawn TO its boarding places
} followed by unprecedented con
traction in the actual yOlum
of our currency. Such q contractioi
r IL has been shown must bA fol
+ lowed by great fall in prices
What then? Would not gol,
: flow hero as tho tides flow? Surely /
would come as fast rs ships could brlnN
it. What then? What woul,
those who have beon boarding gold du
: with itr Labor, the lotter says, already
, greatly depressed, would -ule
= still further depression 10y the scalin'
, down OF tho purchasing pDSm
Of every so called dollar paid into the
. hand OF labor. Hero, fin ono sentence
contraction, fall of prices and thi
3 scaling down of the purchasnJ
| power Of dOllur-but that wal
, when those impending calamities wer
e TO come. PricGs are to fall
3 everything become cheaper aui
money become Of less Yalu
( at the same time. That Is, both side
OF the balance so down together
! the other COOS down. Usual,
as commodities become cheaper monei
Y becomes relatively dearer, AM
! vice versa. Usually, a contrlc
I ton of the main VOlum
$ results in rise In the value of money
I and not n tall. Tho contradictions IN
4 vulved In this paragraph of the lr,t0
I are hardly calculated to carry conyic
! tiOn to those VINO have ever studied tn
b in them any sease of alarr
% at our approaching calamities fruu
p. such cause. In ono thing oil
g will agree, and that is, IN th
D Importance TO the whole cOuutr,
{ and especially to the laboripg clusse
n now struggling with want, OF
r revival OF business and prosperity
Tho one condition ossoutil
e 10 this is 10 stop contraction OF tho cul
o roncy. No country over did thriy
3 and never can whil0 /,
r money is undergoing contraction
y Business can net be secure whom II
}. foundation IL constantly givin
J, way, Stability in tho vuluiu
7 Of money is the one essti
b tial requisite 60 safe Rnd prospp
n tarY condition oi the wcrld O.
z day? Are we not brougl
: face To face with the startling fact ,hl
l. the gold production OF the world h,
+ fallen below It's consumption
l. arts, and that there is VI
n probability Of any new gold /,
4 the money supply tor cCntuu'
(. to como with this cundi.iu
b. Of things? A. tu gold shut ou f,0i
d: silver, as is now proposed, where Is n
.e money supply even for Keeping d
Il tho stock ul cuiu now
a tho hands OF The worl
At to como lIom Aggreyatiug t.is st1
V OF affairs iu this country, tAe pap
NJ cmrcncy ~ undergoing cuutra
of tiOn hV the surrender uf oar
n, notes. /, tl!s stIle ut thinls g., tu lea.
10 upou what ~ there to build Tho hope
)r roWniug pro ,peri,Sg la the last TIM
i- years, according ga the lonUou Econ
lo misi, tho prices have fallen mu
ID thUu - per cen. Chus mon,
50 has appreciated I'm that rae
.l.l IN uVuaUtr "a q coutary iuiinWiUg /
10 gold discoveries Ia California aud ~
IN trHh, The stock of precious meta
lc I'm u.o ~ money WAS iuples,
is by mMly 40 per cvnt,, aud she oomnrl
|..t maud unI elm Nf.Uf.I