New-York tribune., 1886-06-07
CAUSE oFBCsINESS DEPRESSION ABRo4D
GERMANY SELLING SILVER TO KEEP UP ITS GOLD
RFsERYE-BIMErALLIsM IN FRANCE.

GERMANY SELLING SILVER TO KEEP UP ITS GOLD
RFsERvE-BGMETALLIsM IN FRANCE.
LONDON, May 2l.-The fall of silver to the
lowest price known has until now been attributed
10 the peculiar state OF exchanges with india But the
fact comes out that the German Government has again
been privately selling considerable amounts OF silver
bullion in the market an operation which, OF course
has materially contributed decliDe IN price For
a long time German Bank has concealed the proper
ton OF gold In that 1t Is not posi-
lively whether there has oeen loss or not But
II supposed by many that considerable part Of the
gold rapidly acquired by the Bank Of France has come
Germany. ana that some uneasness on account OF
the loss OF gold has stimulated the Cow to sell
silver again.
These circumstances give additional interest the dis
cussion now progress regarding Mr. Gifen's recent
address the Institute OF Bankers last Wednesday
IL il commonly said that his remarks were not altogether
satisfactory demonstrating the theories which ne en-
deayored TO establish. His Argument that bimetaism
IN France had not IN fact preserved without essential
change the ratio bet silver and gold indeed
supported conclusive statistics But the reasoning
which folio ed the bimetalc system In France
had without practical beneficial influence was no
conclusive. for would be 10 reply nat the huctu-
atons In the price of silver In the ratio silver
and gold. though they were considerable during that
PERIOD you'd been far greater but for the influence
exercised By free coinage IN France
In 1he Lcoon,is OF saturday appears letter OF
siderable interest by T. Koch, OF Germany. in
! reply to the recent letter OF M Cernuschi.
Mr.. Koch ridicules N. Cernuschis theory that
there has scarcity OF gold to cause "a
decline In prices, asks Way Is it that the de-
preston OF trade has been universal whereas the dso
of the p.met.c between goid ami silver, 10
which NJ. Crruuscni ascrlDes the oniy cause 0f the
monetary morbus should only have affected tran-ac-
tons with god anu countries with
silver audrG T. lie then goes TO snow mat pr.ces
since 1873 fallen generally about 70 per cent
That all existing obi CATIONS ANA securities bearing
fixed interest ali becoming more 0ppres-
and adds shcn SIl doubtless gO Isr
To .xpan depression In the United states as well
IA III this country and the continent:
/ ANY one has been caught ia TINS gradual eDDng
of 1873. by a succeeded III
not perIshIng have become say and Will carefully
nut n.s earnings remnants or his savings IN q
/ bank with Il determination never 10 ri-k auy more.
Will naturally get accustomed To the golden
rule OF NOT ping any more stock tnan Is absolutely
necessary keep their shops going for they know they
do for tnein. and those engaged In trade with the
East by the bears the largest proportion 10
the whole port OF England aud Europe, Will De-
com. disinclIned 10 engage IN any VEN
tureA what with Door Landowners and propretOrs
OF mills, sell. much less move. cah only
say this, them Will fe-l t most
uncolnfortaoiy Ths II appears to Inc, Will sufficiently
explain why the stock Of gold ia the DarAs Is III
crra-ng.
II accounts from United states not altogether
erroneous tnss. describe accurately the cond-
ton OF things there, aud suggest the question whether
since the pne sssed just same on botn
sides water, IL not piece OF fol Tor puOHc
men Ia America everlastngy 10 attribute the Things
lhey causes peculiar u Alaersan legislation