Los Angeles herald., 1891-06-12
A DOUBLE STANDARD UNAVOIDABLE.

ADoUBLE STANDARD UNAVOIDABLE.
The circular of Henry Clews & Co. of
the 9th instant says that, contrary to
the expectations of everybody, the ex-
port Of gold continues to be abnormally
large. The week previous the specie
sent out from New York to Europe was
81 ,000.0 .000, and the entire expectation
from the commencement of the move
ment will reach in round figures $780,
100000. This extraordinary demand in
Europe for gold is due to several causes,
one of which is the lingering after effects
OF the South American disasters; and
another the peculiar action of Russia in
withdrawing nearly all her funds from
foreign repositories.
The credit of European banks is
drawn to its utmost tension, and the
fact that all payments are required in
gold, thus discrediting silver and limit
ing the power of easing off the money
stringency to single metal, must in the
end force England and Germany to take
steps in favor of returning to the double
standard. Notwithstanding the ex-
traordinary drain upon this coun-
try for gold, the European banks
are not yet in condition of
safety. They feel that at any moment
they may be called upon to meet un-
known emergencies, and whilst under
ordinary conditions they might consider
that they had been sufficiently rein
forced with the yellow metal to meet
any extra demand upon them, yet
with Russia in position to make another
such call for gold as sent the Barings to
the wall, they feel that their only safety
is in having an unlimited specie reserve
in their vaults.
What must inevitably be the outcome
of this strained and unnatural financial
condition? Can the clear-headed busi-
ness men OF England and Germany fail
to see that it is their duty and their best
means of safety to at once double their
money resources by remonetizing silver?
They know very we'll that the moment
they declare for a double standard silver
will at a bound rise to parity with
gold, or rather that gold will descend to
meet silver till both are on an equal
footing. 1t is inconcelvable that Great
Britain, with gold reserve to meet in
stant demands of only 3 per cent. upon
her call obligations, can afford to
let herself drift along towards a crisis
which may prove the most overwhelm-
ing and disastrous the world has ever
seen; especially when she can doubly
fortify herself and be in position to stave
off financial ruin by reinstating the
white metal in the position it is Justly
entitled to.
Those who have been frightened by
the monometalists with the false as
sumption that there is so much more
silver available in the worlds store than
gold that the yellow metal would be
swept out of sight by silver remon-
citation, have only to look at
the facts to be convinced that there is
no such danger. When we examine the
tables for the past forty years we find
that the worlds production of the two
metals has run very evenly, although
gold has at times been far more plentiful
than silver. From 1862 to 1870 the
worlds production of gold was three
times that of silver. 1t was the free use
of gold during these years that gave it a
fair standing alongside of the scarcer
metal. From 1873 to 1890 Us years. the
production of silver only exceeded that
of gold by $50,665, ,25S. In the last
twenty years the business of the world
has grown tremendously, and it requires
all the money of both metals to be
transactions.
To show that it is not the difference
in the production of the different met
ais that has caused the difference in
value, let us look at the totals as far
back as 1910. In that year silver dol
lar was worth as compared to the gold
dollar 1926; it continued at premium
down to 1873, when the crime of
crimes was enacted by our con-
gress in demonetizing it. In 1859
silver reached 105.22. it's highest
water mark. From 1873 it con-
tinued to fall as compared with gold
from 98. Sc till 1889, when it reached the
lowwater mark of 72.4. Now mark the
effect Of demonetization. From 1851 to
1870, while the worlds production of
gold was three times that of silver, with
the double standard, gold only fell off 5
per cent. at the utmost. From 1873 to
1890, when the production of silver only
exceeded that of gold about $50, 100000,
less than one-third, the falling off
in the value of the silver dollar as com
pared with the gold dollar was about %
cents.
Is there not food for serious thought
in this striking difference, brought about
not by natural laws but by artificial
means?