The Roanoke times. [volume] (Roanoke, Va.) 1890-1895, 1892-03-10

oStiNCEluR US lEOm Ii COnulOG OIL stand
ards, which, so long as 1t lasts, will be
cause Of uncertainty most injurious to
numerous interests.
L repeat,c monetary unity is condl-
ton of economic progress and deyelop
ment. Money is everywhere the meas
ure OF value. Not, indeed, a measure
of the Same kind as the measures of
length and capacity, but in this sense,
that 1t serves as means Of comparison
of all values. From this point Of view
alone it is obvious that international
commerce must suffer if there are in
common use two measures of values in
stead of one.
IN fact, money proper disappears out
of international trading, and commerce
is reduced again 10 state of barter.
But, as Jevons has said in the words
which have placed at the beginning of
my essay: Modern society could not
exist in its present complex form with
out the means which money constitutes
of valuing, distributing and contracting
for commodities of various kinds"
But, it is often urged, even between
! two countries with different standards.
there is always rate of exchange in
existence, exactly as there is between
a country with snonetary standard
and one which has n system of incon-
vertible paper money. This is no doubt
true. But what is wanting here is sta
bility Of exchange, the certainty that
the rate of exchange c&n only vary
within known limits.
Can any one believe that country
with system of incouvertible paper
money is not injured by such state of
things? 1 am speaking, be it under
stood, OF the trade Of the country taken
as whole, not of particular transaction
which persons undertake at such times,
transactions which bring in exceptional
profits gained only at the expense of
other persons.
am certain that science has always
shown, and history has always taught,
that country with inconvertible paper
money as legal tender must feel the eff
fects of it in it's trade, and that every
thing connected with trade suffers with
1T in the same way, and 1 am further
certain that country whose trade is in
lured is in no case the only ono to feel
the injury, but that the loss must in tho
end fall, though in a different degree,
on all parts of the commercial world.
Well, then, 1 accept the comparison
between the cases of two countries,
with different monetary standards,
and of two countries, one with
monetary standard, and the other
with system of inconvertible paper
money.
No one surely could desire to put the
commercial world in such position.
And, further, as far as foreign trade is
concerned, it is clear that this would
reduce every country without exception
to identically tho same position as that
of country with system of incop-
vertible paper money.
But it might be said that these evils
are imaginary; all is pure theory. AS an
example OF the real state OF affairs,
take tho commerce between England
and India. The inquiry of the Gold
and Silver Commission has demon
strated that all harm done is reduced to
tho payment of trivial bankers com
mission.
Now, first of all, may observe that
much of tho evidence on this point is
conflicting: further, it is true that in
countries in such close relation as Eng
land and India, the harm done is re-
duced to = minimum; but this is not SO
In every case. Besides, in such matters
there are effects which are seen, and
others which are unseen.
Granted fof the minute that Man
chester merchant sending a consign-
ment of manufactured goods to India
is able to cover himself from loss by
exchange. But when ne wishes to
make an estimate of the probable in
Gre ase in given time of the amount of
his exports to India, in order to be able
to regulate by it his purchases of raw
material and various other Things, he
cannot then insure himself against
the effects which the disturbances of
price caused by the fluctuations of the
course Of exchange may have on his
trade. Here, without doubt, there is a
cause of uncertainty in trade and indus
try which it is impossible TO eliminate.
We are not yet at the end of the dis
astrous effects OF such state of things
on International trade. Money is not
only measure it Is an equivalent.
AS such it occupies, and always will
occupy, most important position in all
commercial operations, and especially
in International trade. 1t is only owing
to the export and import Of the metal,
which is used as money, that tho
natural relation of prices between two
countries is maintained
If the similarity of money standard
between them is destroyed, the bond
which unites Thorn in this way is broken.
There is still third consideration.
Money is standard Of value for de
ferred payments. All loans, all bills,
whether of long or short date, are money
contracts. Consequently, 1t is of great
est Importance in all these opera lions.
when they are between different coun-
tries, to have al identity of monetary
standard between the two.
The capitalist who makes an invest
ment abroad is not willing to expose
himself to losses through depreciation
OF the money which measures its amount.
The depreciation of wnicn he feels the
effect is not only apparent, but also