The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1893-05-18

How the United States Assists Great
Britain to Deprsss Silver.
when Fsreign Csuntries want Geld
They Draw On she q. s.-.Nes
Yeiiew Metal 60 Go Round.

On Thursday last the Bank Of England
raised the rate Of discount one-half per
cent. England wants more gold, and
this l. the way It gets It. On this sub
iect the Tacoma Ledger says:
CAS- there is not gold enough to go
round, giving each country enough to do
its business, each must run short occas-
ionally, and when the supply on hand
must be replenished. France has been
replenishing for some time past. and 30
has Austria. Germany and Russia
strengthened their reserves nome time
previously. England being the richest
commercial nation, largely a c.editor Of
all the world, with something like $l0,-
00o. 600, 900 invested outside her own tight
little islands, on which interest and divi-
dends are being regularly paid, rarely
has to make any special effort to accumu-
late gold. The simple process Of raising
the discount rate by the bank Of England
usually accomplishcs what is wanted.
When the bank Of England raises the
discount rate, therefore, all the world
must submit, and all the commercial
world 10 affected.
"At the late International monetary
conference Lord Rothschild asserted that
the worlds commercial business was
practically done through London by
means Of bills Of exchange drawn on its
banks. 1t was necessary, he asserted
again, that these bills should lie paid in
money of a known and invariable value,
and therefore they must be paid in gold.
What gives gold its fixed and unvary-
ing value he did not say, but the con-
gress probably knew. or il it did not Mr..
Rotnschild could have toldit that strict
laws Of England compel the purchase Of
gold for its mint at fixed price. 1t
takes no such precaution to protect silver
because it is not to its interest to do so.
Being strong creditor nation it finds
profit in exacting payment in the one
metal whose value 1t guards, and by
guarding appreciates It's value by com.
parison. 1t has no silver mines, but is a
large purchaser Of silver for its india bus
mess, and is therefore a bear on silver.
BY this bear process 1t annually robs
India, according to 3 statement recently
made by member Of the house of COM
mons. Of about *35, oOO, 600. for which it
ms = 40 eot An eli 10
same member says, England still claims
to govern India for India's good.
Under the present Sherman law the
United States il compelled to buy $500,
600 ounces Of silver per month in the
world at large. and London fixes the
market price. The United States is
therefore, in effect, voluntarily helping
England to depress the values OF our
other products, especially those which
compete with the products Of India, as
well. In discussing this matter in re-
port made.to congress in 1886. Mr.. Ivan
@. Michaeis, who was connected with
the committee on mines and mining.
said:
With free coinage the price Of silver
VIII be stable again, and England will
have to pay for al the silver she must
have for India l293 per ounce fine. Ex.
change on India will advance her consol
bills TO two shiIlings from the present
rate OF ls Sd per rupee, and midas wheat
could not be laid down in Great Britain
for less than $40 per bushel, and az
Indian wheat Is inferior In quality.
American wheat would sell In Great
Britain at from 81 5 to 1880 per bushel.
and our farmers would receive lust 33
per cent. smore for the wheat they could
raise.
Now that England wants more gold,
the United States will probably have to
furnish it. We have been supplying all
Europe as it has made it's demands. We
cannot very well avoid complying with
her demand In this respect, since we
have 80 long been in partnership with
her In depressing and discrediting one OF
our own products for her benefit and our
own injury.