The herald., 1893-10-02
EVIL RFFRcrs OF CONTRACTION.

A very thoughtful and scholarly paper
was published short time ago in one of
the magazines by Governor Pennoyer,
of Oregon, in which that gentleman
traced the cause of the several dark and
miserable epochs of the world to the
scarcity OF the precious metals as
measure of values. The governor went
on to show that if at the crucial periods
of the worlds history to which he re-
ferred either one OF the metals had been
withdrawn from its function as a meas
ure OF values in exchange, the sufferings
Of the human family would have been
intensified, and condition of things
brought about which would have de.
stroyed all the advances that had been
gained in civilization up to that time,
and forced society back into condition
of hopeless barbari,m.
The governor OF Oregon was not the
first public man to draw attention to
the transcendent figure which the me-
tallic representatives OF value have cut
in the progress of mankind. w. II.
Grenfell, an ex-governor of the Bank OF
England, has just contributed an article
to the Fortpightly Review for Septem-
Der on "Gladstone and the Currency"
in which he takes the same ground as
Pennoyer. and quotes most significant
and conclusive passage from Alison's
History OF England in support of his
view. The following is the passage which
Mr.. Grenfell cites to show that contrac-
ton has ushered in the night whenever
the progress OF humanity has been under
eclipse, and the dawn has only reap
peared simultaneously with the reap
pesrance of bountiful circulation of
the precious metals in the affairs OF
mankind. We quote:
1.-The two greatest events that have
occurred in the history OF mankind have
been directly brought about by con-
traction ard, on the other hand, an ex.
pansion OF the circulating medium OF
societv. The fall of the Roman empire,
so long ascribed in ignorance to slavery,
heathenism and moral corruption, was
in reality brought about by decline in
the silver and gold mines OF Spain and
Greece. And, as if Providence had in
I tended to reveal in the cleare5t manner
the influence of this mighty agent on
human affairs, the resurrection of man
kind from the ruin which those causes
had produced was owing to directly
opposite set OF agencies being put in
motion. Columbus led the way in the
career of renovation. When he spread
his sails across the Atlantic. he bore
mankind and its fortunes in his barque.
The annual supply OF the precious
metals for the use of the globe was
tripled; befores century had expired
| the prices OF every species OF
produce were quadrupled. The
weight of debt and taxes insensi-
blv wore off under the influence
of that prodigious increase. In the rem
ovation of industry the relations OF soci-
| ety were changed, the weight OF feudal.
| ism cast off, the rights Of man estab'
lished. Among the many concurrinR
causes which conspired to bring about
that mighty contamination. the most
important, though hitherto the least OBJ
served, was the discovery Of Mexico anG
Peru. If the circulating medium OF thi!
globe had remained stationary or decin
Ing, as it was from 1915 to 1S49, from tht
effects of the South American revolution
and from English legislation, the neces
sary result must have beeh that it woulC
have become altogether Inadequate t,
the wants of man; and not only woult
industry have neen everywhere cramped
but the price of produce would have uni
versally and constantly fallen. None,
would have every day become more val
liable; all other articles measured il
money, less so; debt and taxes woul
have been constantly increasing il
weight and oppression. The fate whicl
crushed Rome in ancient, and has al
but crushed Great Britain in moder
times, would have been that OF tn
whole family of mankind. All thes
evils have been entirely obviated, an
the opposite set of blessings introduced
by the opening of the great treasures {
nature in California and Australia"
1t will be observed, clearly. that til
dark and miserable epochs in huma
history have been the result OF the col
traction OF the circulating medium
the inadequacy of its volume to me
the growing wants of the human famil
The measure that would suffice for tt
, worlds needs in the time OF the Ia
, ouins would have been altogether ina
eouate during the Augustsn perio
, when Rome had the treasures OF Il
hole world to draw upon. But duiil
the decadence OF the empire and ju
prior to the twilight that ushered in t
! long and dreary epoch OF the dark age
the mines that had sustained the supe
: fluities OF the masters of the world ht
= given out and the precious metals h
= almost completely retired from circu
tion.
1t wasnot till anew continent, with
:. almost unlimited stores OF metal
: wealth, had been discovered that t
= broad sunlight again dawned on civ
, ization. Since that time every gre
h uprising OF the people has been raHH
:, by the artificial contraction OF =
bv the classes who had contrp
The French revolution eprang Il
n rniseries of the people who were re !,
r. to live upon roots, whilst the maa'
a classes rioted in the luxuries viii
10 their political aystem OF oppression
le abled them to maintain.
"a p-t ~A-A- hAf~-- - 49, L;-'~-- - I