The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1893-08-22

SnOW DldD1 QlI4HR buo DASb bWtubT years
in the London market, the gold value of
twenty-five leading articles has declined
in the same ratio as silver.
/ In Hamburg DIR. Soetbeer, the noted
statistician and economist, shows that
articles there have declined in the same
manner. Seven great standard COM
/ mOditieS in this country have been af-
fected by the same cause, and the same
| operation has applied to them. Such has
been the effect upon the general range OF
| pIices. As gold has appreciated, by rea-
son of the increased work put upon it by
curtailment of the use of silver, all other
things in their gold prices have suffered
wealth and property, except gold credits
and liked charges, nave been nibbled
away by the ever-increasing demands of
the money claims.
A commission was appointed by the
English government a few years ago
upon the depression Of trade" You,
| gentlemen, who are SO fond OF quoting
the English as being er cGthedra on all
questions relating to finance, when you
take up the findings OF this impartial
commission, which extended its investi-
cation not only into that, but into all
countries where the matters under con-
sideration could be illustrated by expert
ence. Will find strong language upon the
subject.
These were the conclusions:
First-That the depression dated from the
year 1873 or Whereabouts.
Second-That il extended to nearly every
branch OF industry Including agriculture man
ufactures and mining, and that it was not con-
fined to any one, but had been experienced to
| greater or less extent IN all the Industrial
| countries OF the world
Third-That it appeared to be closely con-
nected with the serious fall in general prices
which, even then, was most observable, though
1t has been since more strongly marked, result
Ing IN the Q1mlQutlOQ. n
the total loss Of profit and consequent irregu-
larity OF employment to the wage earners.
Fourth-That the duration of the depression
has been most unusual and abnormal. No ad-
equate cause for this state OF things vas dis
coverable, unless 1t could be found in the same
general dlSlOcatiOn of values caused by eurren-
cy changes, and which would be capable OF
Affecting an area equal to that which the de-
preston Of trade had covered.
Ernst Seyd, distinguished economist,
IN 1873, at the time OF the proposed de-
monetization of silver by Germany and
other countries, predicted this continuous
| depression, as the cause for it would be-
the curtailment OF the money, the basic
means OF value, represented by $4,000
OOO, coo worth Of silver; that as that was
cut down and demonetized, values would
be depressed, and you would have all the
evils which have since ensued.
How prophetic was his visIonI
But they say gold has not advanced in
value. 1t Is in the gold prices of things
that all things have declined in value.
With reference to all those things gold
has advanced in value.
Gentlemen, want to call your atten-
ton to the words of Senator John Sher-
man, a distinguished statesman, to whom
all the evils growing out of this unfortu-
nate legislation in 1873 have been attrib-
uted. | say that he knows today, and
that he mas declared, that by reason OF
that act gold has advanced, to the detri-
ment of all Industrial enterprises, and to
the Advancement of the wealth of those
whose wealth consisted OF credits and
fixed charges. 1 Will ask the clerk to
read letter addressed by Senator Sher-
man to Mr.. Groesbeck, of Cincinnati, o.,
J ulY Is, 1873.
The clerk read as follows:
TREASURY DEPARTMENT, July Is, 1873.
| DEAR SIR-TO that part OF your letter Of the
18th instant. in which you ask my view Of the
matters coEhded in the monetary commission,
1 have some delicacy in replying very fully.
| During the monetary conference In Paris.
! when silver in our country was excluded from
circulation by being undervalued was strong
ly il favor Of the single standard Of gold. and
wrote letter, which you viii find in the pro-
| ceediugs of that conference, stating briefly my
| view. At that time the wisest among US did
not anticipate the sudden fall of silver or the
rise OF gold that has occurred.
| This uncertainty Of the relation between the
two metals is one of the chief arguments in IA
Vor OF monometa1lic system, but other argu-
nents, showing the dangerous effect upon in
duStry By dropping one OF the precious metals
from the standard Of value, outweigh, in my
mind, all theoretical objections to the bimetal-
JOHN SHERMAN, Secretary.
Mr.. Rawlins-He attributes it to the
same cause. Now, there was not dele
| gate to the conference in 1873 who did not
appreciate that the characterization of
| silver was the cause. There was not
| delegate in the conference of 1881 who did
not recognize the same fact. There was
not delegate in the conference of 1892 at
Brussels who did not declare the same
| thing; and we have another prediction
here, gentlemen, to which l earnestly
call your attention, because in this de-
claration you find the cause of the dis
| tress with which We are afflicted today
| predicted in unerring language. Mr..
| Rothschild, who is not supposed in any
degree to be biased in favor of silver, who
is not supposed to be a silver lunatic,
| used this language in November, 1892.
Listen to it, gentlemen:
| 1 need hardly remind you that the stock of
] silver in the world is estimated at some thous-
| ands of millions. And II this conference were
/ to break up without arriving at any definite re-
| suit, there would be depreciation in the value
OF that commodity which it would be frightful
1 to contemplate, and out of which q monetary
| panic would eusue, the far spreading effect OF
| which 1t would be impossible TO t0retell-
Mr.. Bland-They have got the panic
now.
| Mr.. Rawlins-That conference broke I'M
without arriving at any definite result.
Then came that great decline of silver.
| Then ensued the financial wreckage and
crash in Australia. And let me stop mere
| to call attention to another prediction,
one of many made at this conference. Il
was said there that unless the nations did
agree that the next step would be the
closing OF fine minis in India and what
would happen then? Why that would
precipitate and cause a decline, an abso-
| lutte destruction Of billions of dollars,
represented by silver in its value and all
values having relation to it, and that a
depression would accordingly ensue.
That has happened. That prediction
has been verified by fall In silver and all
other things in one week of 20 per cent.
Just think OF It'll Ali the wealth in one
month has sustained loss of 20 per cent.
| and all the accumulation of all the ages
| of all people to that extent swept away
| by the fiat of council of ten men de-
creeing the closure of the minis in India.
But what next was to complete the mis-
fortunes OF the human race? Sir Rivers
Wilson in that conference said:
What are the results to which this double &C.
ton the part OF the great purchasers OF SILVER
might lead? Certain high authorities believe
| that the sudden cessation Of the purchase Of
silver in the United States and the closing Of
the Indian mints, should these events actually
occur, would lead to heavy fall in silver and
q disastrous disturbance OF commerce.
When 1 looked at this question, I did
so conscientiously for the purpose of ar
irving at the truth, and as l saw to de-
clare it. / see the destruction of silver
bringing disaster. The most distin-
guished economists throughout the world
have declared the results which would
II T..