Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1885-12-10
MIR. Frewen writ es:


There is a strong party in the United
States concerned to demonetize silver.
Why not? All prices are regulated by
the volume of the currency; when the
amount of the worlds currency is ex-
banding, wages and prices and profits
are of necessity high. and industry is
encouraged. But, on the other hand,
the burden of all debt is reduced, and
this is not comfortable position for the
creditor classes. | need not illustrate
this position, it is familiar to all; Prof.
Jevons made a careful estimate that the
result of the discovery of gold in Cali
fornia was to make gold cheap, and so
all prices measured in gold rose some
thirty per cent. That is. the burden of
all debt, whether national or individual,
dimir ished thirty per cent. A comfort
able osition for the working classes
who eally pay the interest of the ma
tional debts, do you say? Quite true.
But you must remember that, especially
in Europe, the relns of power are in the
hands of the gold classes, the classes
who 1--we by lending, not by borrowing.
and who till the end of the chapter viii
secure as far as possible that the burden
of debt shall increase, not diminish
What has been the history of the cur
rency in Europe? In every country it
has been a struggle of the creditor
classes against the industrial classes. In
1916 Lord Liverpool, at the bidding of
the banks, demonetized silver in Eng
land. At that time the working classes
were excluded from al. share in the
s 81. II
suppose for moment that such legisla-
ton. which greatly increased the bur.
den OF all debt, could be carried through
in these days, when the people have a
voice in legislation? Similarly Holland,
after the gold discoveries, demonetized
gold because gold was becoming too
cheap. Holland had high property
franchise, and was and is a great credi-
tor nation. France, on the other hand
thanks to universal suffrage--has kept
a prodigious mass both of silver and
gold in currency, and the result is that,
while England has circulation of
barely S25 per head, France has more
than $50 pei head, and seems to feel the
burden of her prodigious debt less SEN
sibly than England does debt 80 per
cent less. What are you to do with
your silver? Why, you have not got
any silver! What have You got? A
mere $50 millions. vita some 600 mill
lions in gold behind it. just look at
France, much poorer country; she
has nearly 900 millions of silver Of
lower coinage ratio q to 1879. backed
by some 500 millions of GOLD. The idea
that in the states silver is going to drive
out gold is, as they say in the west.
rather too thin The bankers, of
course, say so; that is their business.
The banks have been 'boycotting' silver
for eight years, and will no doubt con
tinue to do so. They are acting under
orders from London and Berlin. II YOU
in the states only knew how gold mono
metallism is Gripping our commerce in
Great Britain, you would not think
twice about sharing the same bed I
have heard many prominent authorities
on this side. notably two ex-goyernors
of the bank of England. express wish
that you in the states would demonetizc
or at least try TO demonetize. silver, be-
cause the result would be such a col
lapse of trade in the Old World that
there would ue scramble, especially in
England, to monetize silver.
''How can you lose your gold, any
how? Do you think the balance of
trade is likely to turn against your And
even if You could lose your gold all
that would happen is that those of your
citizens who own gold would sell it
abroad to good profit. Depend on il,
silver is far better currency medium
than gold. Gold seeking is mere pro-
cess of gambling Silver mining, on The
contrary. is as much an industry as
coal mining. Then, why are you tn
| legislate to stimulate the former and de-
press the latter?
s'But one argument will always keep
you from demonetizing silver. For il
you did this, the price of silver would
fall. and the price of silver regulates
the price at which you can sell wheat
end cotton in the English market. For
| this reason: As you know, India is be-
coming very formidable competitor
with you in these trades And il you
compare table of prices for silver and
wheat for the past four years. you will
observe that with every fall in the price
of silver, Indian exports of wheat have
increased and the price has fallen. The
reason of this is not far to seek. India
pays Annually to England about $780,
WVU0U ss interest on loans. The intef.