The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-01-03
ENGLISH INVESTORS.

Senator Morgan is reported as saying:
For fifty years this country mas occupied to-
ward England the position which the new towns
Of The West occupy toward Boston and Neg
York. To build our railroads, dig our canals.
establish lines Of common carriers on water
routes open mines, fell forests-in word. to
boom the nation and force its development, We
have borrowed English money.
The facts which Senator Morgan states
are the cause Of England's hostility to sill
yer. The creditor nation is much like the
Individual creditor 1t fayors a financial
policy which will increase the purchasing
power of money. A good many centuries
ad passed before England discovered the
fficulty OF maintaining gold and silver at
parity on an agreed ratio. In fact there
was no such difficulty. The commercial
value of the two metals luctuated but little
| as long as the debtor had the choice of ! ay-
m mt between the two. But some fifty odd
years ego it was discovered that period Of
re narkable commercial and manufacturing
Or isperity had placed England in the posi-
tiel of a creditor nation. England was
nding out goods TO and receiving money
| from all civilized nations. English money
wal invested in foreign securities. more
| Otter in bonds than in stocks, which made
| -tuc luNeetOI n pdILufI anu losses.
England's gold policy dates from this period
and this condition. Germany adopted the
same policy when successful war made her
creditor nation. The United States ac-
cepta1 it while still debtor nation through
| the influence of sections which were in
the nloney-lending business. The largest
| silver producing nation in the world and the
natio paying the largest amount in inter
| est OF bonds. including all sorts of seeuri-
ties, committed the uDaeccuntabie blunder
of fol- lowing meekly in the financial policy
OF the nations that are drawing annually
/ hundreds OF millions of our money.
A agnosis OF our financial disease is
a simple process, but the remedy is not so
simple Senator Morgan favors a Tree sill
yer coinage bill, which would inevitab bly,
throw cur business upon the silver basis.
But it is not clear that debts contracted on
gold standard may justly be paid in silver
| We may have TO buy gold 10 pay debts with
| while using silver as the medium of ex-
| change at home. Two other remedies have
been discussed. either of which threatens a
worldwide financial crisis. One of these
| two remedies is to drain Europe OF its gold
! by throwing our silver upon the worlds
market. 1t is held that by this course
| Europe may be forced to abandon its gold
| policy, and TO agree upon ratio at which
both gold and silver shall be received in
payment OF all debts. The other remedy
| discussed is to buy ali the marketable silver
in the world at current rates. 1t is not sup
posed that the amount which can be spared
viii go n uch over $500. 900 900. counting our
own surplus as out Of the market. This last
| remedy Is continuation on a larger scale
Of the policy OF the present administration.
We ha7s bought silver steadily. but not
enough 10 exhaust the surplus in the mar
ket. Consequently our purchases have not
kept silver from going down. But it is
thought by some that purchase without legal
limit, continued somewhat at the discretion
Of an administration friendly to silver,
would force silver up to its old point.