New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-07

m0nAy. another cQpe0 O0tA nesoSB 1n&0 toU ~
ee.dr neAey and. fixing the diseens .ejxnts u ~
two metals which should have tpe,esmc Aebtspe1ing
and purchasing powsr, kept in uae 20 large essssa
stocks of both mako her ratio prevalent Gold,
therefore. had in its proportion much paying p"vep
wherever silver alone had tree coinage ss whore both
were coined Silver tber fore had In ts properties
az much purchasing power where ge!a alone had free
coinage as where both were coined The two metaIs
were thus joined practically In a universal MONEY!
and the general range of prices which 10 measured
was identical, other things being equal, Ia Great
Britain and elsew here. In other words the sves
coinage which England sbirked 10 1915 was else
where done the free coinage fixed ratio into fan
legal-tender money. which she had previously
proaered both to al the gold and all the anywhere
mined or melted. was elsewhere actively maintained
for sixty years. She neither had a different standard
nor single gold standard she was merely factor
in the general equilibrium Of metalc coinagea
which France, by bimetaic coinage, had power to
keen stable The dependence Of Great Britain was
absolute at the time her Independence was most
Wanted.
Thus Great BritaIn's exclusion If silver from mint
age into unlimited lega-tender money in 1915 did
not at promote the dsuse that metal in inter-
national transactions. not those II which mer.
chants and bankers were themselves concerned nor
did It disturb the ratio Of weight at which the tuo
metals were given and received of equal value.
nor did affect that range OF prices the resultant OF
the worlds industries and EXCHANGES measured
against the extant aggregate OF the two monetary
metals, so long "a great mDs were elsey here open
and ready TO coin both into money that was equally
lawful tender IN fulGDent OF every contrast pay
ment OF debt created in daily Of those in
dnsIries aud exchanges until 1873 d. Great
Brtain's pursuit OF an ILL sorry standard finally dis
close lis pregnant mischief
CRISIS AND COURSE OF TIE MONETARY DrsIJOcA.
Ton.
The mischief pregnant in Great Britains silver
boycott Of 1916 leaTed TO- light when Germany. In
1873, i'm tatel. that imperial bGnscr OF the growth
Of British commerce. one uninauentai circumstance,
one mere concomitant her exclusion Of silver from
mintagc into full legal tender coinsl deemed q
cause. Called by the inusory the single gold
standard. Wanted by Great Britain herself 20
monetary system under which she has enjoyed much
prosperity" and thus accredited partial
OF the greatness Of her commercial empire IL obtained
the admiration Of a rising power then exercised
in the military than the in,ustria arts. but
centlyconsoldated into political unity after gigantic
war. Equipped with the paid into tho I'm.
perial Treasury by rich but vanquIshet Power, the
statesmen Of Germany determined, at any cost. "a
possess her Of the god fetch.
Closing her minis to the further coinage OF silver
retiring from CIRCULATION her silver heretofore
cusvey coined AMI seeking effect its substtntion
France throwing large quantities of silver upon the
English market at short intervals and In unknown
amounts for sale. Germany by her ecslat OF 1871
80 thus conceived in the Likeness Of Great r tain's
cgisation Of 1916 and, together herewith immedl-
tely caused great monetary disturbance.
France, in presence Of the silver food from Ger
many. distrsted the power Of her open minis alone
TO maintain the ratio OF the metals under free
coinage Of BOTH a. almost alone shc had d0no dur
ing the Immensely greater inundaton of gold from tho
new mines Of California and Australia; and first
strictng her mintage (which neither defeated the
pose of Germany rs prompt closure would have denel
nor deprived 1t Of importance, continued
free coinage would have done, at last
closed her nnts altogether the further free coinage
of silver for tho public into money OF unlimited legal
tender: and thus 1T Last subyertcd the monetary
peace Of the word.
Since that date. nowhere in the world the mint
OF any great Government. which coined either metal
into full legal tender money coined the other meta:
ino full iegal-iende money at airy ratio.
Thus was ended for time that lie sal fusion: 80 to
speak, Of the two metals INTO one monetary measure,
which the free coinage of both. and the legal
tender quality impaired To both in fixed ratio, had
made practically complete fusion.
Thus was ended the alencc of ancient aeces:-
able pinctanie standard and measure of commodity
prices tho mass of the two .H'0nettIy metals. fused
by free co mage fixed ratio and the full egalten
power, into one metal money atd price measurcr.
Thus began the confusion Of two nconioiacd mono
metallic measures. throughout world all knit to-
re her IN commercial unity.
Thus began tho great monetary dslocation.
Displaced for time the worlds normal uss Of
one common st2nndrI prices. -uf-rrvrfty or
gold and silver Joined, thing in kind and amount
Of ali things best suited to be that stndani, APPEAR
Is have said, first, IN this. that ii IL amount
not not to be var,el by legislative WIS lon: second.
that IL l. anouLt not TO BE- Considerably varied by
any single generation OF m.n for that the annual in
crement is too small IN proportion total nasS
a raiy huge. which slowly grows from 10 ago.
hat total MISS By its hugcness it, inyarabencss,
its ndestruciibility is a miracle among measures
anlng against the vast aggregate Of huuan COM
m0ditcs, mostly pershabe, which sinks and swclis
with seed time and harvest the change ami
OF which the unconsuDed and more less imperish-
able part is small the monetary metals OF tho
world are the most Trustworthy atainable Of
,aiue."
What has followed that displacement Beginning
N 1873 and continuing through MINOR fluctuations
until now. there has been a demonstrated fall IN the
OF the chief marketable commodities Of mans
than c0uniervsiling the demonstrated rise Of
price, from 1915 To 1865. which followed tho addition
Of SlyOO000.cC0 20 the worlds previous stock OF soh
Col being merchandise in countries giving free coin
age into unlimited legal tender to silver alone
and silver b~nc m rchInlt-e III c0.nrc- givsng free
coinage into unm.ed legal-ten'ler moncy gold
alone, and the hxity Of price OF either metal thus
havn ceased becoming as impossible hxi,v Of price
Tor wheat or from IN any country where the other
metal ono has free coinage IL has aiso occurred that
the prize Of svcr, measured by the measure
the fang prices Of commodities ~, has fallen
IN closely parallel or following huctuatgn- far.
sAppeadix CD
CONDITIONS OF MONETARY ORBIT.
The essential conditions Of that Old monetary or,es
in their last analysis seem TO be these:
l. MINIS open to the public for the fIec coinaN
OF god.
p Mint open 70 the public for the iIec coinage
Of silver
8 3. Coined gold a full legal tender.
4. COnct silver a fun lc.al ten Ter
5. Mints open TO the public for the fec coinage
of silver and OF goli.
g. Rated equivalence Of both metals in such coin
age. fixed by states powerful enough 10 make and
keep 1t prevalent
hese condi ions IL Is obvious, operate where
the Inclusion of the uncoinc metals potential
mon'y with the coincd metals actual money
cnlarging the great They render moro
than .triyal they nnilfy and yauatqns tho pcSfy
increment from the mnes or in the petcer decremcnt
from abrason, loss or non monetary uses, They
enable US to map past errors with precision. and
- the poncy stcps by any nation toward
restoration Of tho monetary orier.
Thee joint conditions the security that
changes In prices should be due for every commodity
10 SPECIAL anu natural causes, and not monetary
cause ami should be due to change In tho whole
monetary measure or unit J measrro but In every
case to the varying cost Of production mans In
ven ions and Industries more easily subduel the mat
IL MIN fa sIlal