The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1893-01-10
1.-THE INTERNATIONAL NONE
TARY CONFERENCE"

Z1h 1LD44SAb ~OA
an the silver question, by Prof. II. s.
Fox we'll, recently published in the
Contemporary ReUte1U, London. This
article is especially valuable not simply
because it is ~disinterested but gives
important data from an English point
of view. It is gratifying to see that
the selfish var on silver inaugurated
by England to break down the prices
Of the leading farm products of this
and other countries by the use Of cheap
silver in the purchase of such products
In India, is beginning to react against
her.
The writer hits what | have long
considered the heart of this c0ntro-
versy-the absolute necessity IOf d
broader foundation for our
system than one metal-gOId. Inc Lac6
that Notwithstanding the desperate
war on silver it has been bit little de-
Dreciated- qOLd has been appreciated:
The DopVer of money has been increased
the Uuiue of the products Of
6enrrciated. GEO. E. BOGGs.
"Tounderstand the present monetary
sit1ation, we must go back to the time
of the first International Conference OF
1887 1t has been described as a time
OF monetary peace. There were then,
as throughout the whole period NOW
to history, two monetary ~metals-gold
and silver-each used as legal tender
n England, it Is true, since 1916,
used gold only as a legal tender, while
Germany and other important cOun
tries. to say nothing of the East, used
silver only. But between the w
single standard groups stood France
and the nations of the Latin Union,
where legal t nder might be made IN
either metal, at q fixed ratio Of 154 TO
l. and either metal might be received
at this ratio at the mint IN unlimited
quantities. Somewhat alOOf from this
European system, and not greatly al
fecting it, except In a negative way,
was the United States, whose mlnts
were also open to both metals at the
ratio of Is to 1. The general effect of
this combination was hat for two cen
turtles silver and gold were always
convertible at or about 154 to 1. Thus,
for all practical purposes, we had an
international money.
1T seems incredible that his FORUM
ate and historical advantage should
have been deliberately sacrificed. But
SO it was, at the Conference Of 1867.
The fatal easur was, however, the
German change of standard which
created a demand for something like
eighty million pounds sterling, gold;
while some fifty four million pounds
sterling worth of silver coin was
thrown on the market. France imme
diateiy Imposed restrictions on the
mintage of silver. The United States
had previously taken action in q sim
. liar direction, the effect of which dur
ing the subsequent passage to specie
payment was 10 cause a demand for
gold which Mr.. GOschen has estimated
at yer eighty million pounds s;eTling,
while IL still further limited the none
tary use of silver. Since these critical
events the depreciation of the white
metal has made steady progress until
itnow Stands to gold In the ratio OF "a
to 1. For while silver has depreciaSed
only about ten per cent. in relation to
standard commodities. since 1873, gold,
in consequence Of the increased de
mand, has appreciated some 35 per
cent. This is only another way of say
ing that prices have fallen 35 per cent 4;
anu th'@ steady fall Of prices operates
ike a friction brake upon the wheels
Of industry and commerce.
Moreover. the decentralization Of sill
YER has disastrOusly affected the trade
between gold and silver countries, and
the experiment shows that the single
gold standard does not fulfill the re-
qulrements of a currency as defined
by Mr., BalfOur in his recent speech at
Manchester: We require that it shall
be a convenient medium of exchange
between different countries, and we re
9uire of 1t that it shall be a fair and
permanent record of obligations over
long periods Of time"
In this CersG statement, Mr.. BalfOur
has put in a nutshell, the situation
with which the Brussels Conference
has TO deal.
The most obvious suggesti0nis that
Europe shall revert to It's ancient pol
ICY, and SUI the use of silver as
legal tender upon a fixed ratio with
gold, operating It's minis with equal
freedom 10 the coinage of both metals
There can be no doubt that this sys-
tenn. if re established. would com
pletely remove such difficulties in the
present situation as arise out of the loss
of the par of exchange. AS Mr.. Bal
four has admirably explained, the
supply Of the precious metals may
hucCuate from causes independent of
the action Of Government. But Gov
ernments, who determine the none
tary use Of the meta's s, have an ~irresis-
tibly dominant influence over the de-
mand for them. By enacting free
mintage Of both metals at a fixed
ratio, they set up an automatic ma
chinery, the effect of which is that the
monetary demands for the metals.
varies exactly with the variations in
the amounts supplied to the minis.
II their relative value therefore re-
mains unaffected by these variations
Upon this point the Gold and Silver
Commission were unanimous, 80
long" they say, las the system was in
force we think that, Notwithstanding
the changes In the production and use
OF the precious metals, it kept the mar