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

= sinai enQeavOr not TO weary them by an
unnecessary waste of time | say the
money SO demouetized is lost until the
power which eau restore it RECEIVERS sufd-
cent knowledge to put il back, or re-
clotne It with the functions by which 1t
may become useful IN the channels Of
trade You can have no efficiency, which
IS the desirable thing, without quantity,
can you? And as you increase the guam
tlIy You strengthen the efficiency; as you
olmish the quantity you weaken the eff
ciency. II there were in the bank vaults
Today throughout this country 10 per
cent. more Of quantity, there would be q
stronger basis on which to restore the
confidence of the country.
W bile the president deprecates hoard
ing, he recommends the adoption of
policy Tor its encouragement.
Monetary contraction always leads to
decline IN values. As characterization
goes on the purchasing power OF tire re-
naming money grows. Hoarding is thus
made profitable. Investments cannot be
safely made without a certainty of loss SO
long as the decline in values continue. If
loans are made upon a good margin to-
day, II short time the security becomes
inadequate.
So, ever increasing in value, without
risk Of loss, the money viii be safely
stored away and held
Take the Bank OF England. In 1881 It
had a reserve of 5s42, 600, 600; but with the
characterization of silver and the Increased
demand for gold resulting ther from,
such an encroachment has been made
upon it that the reserve in ten years de-
creased until now it has about G22, 200, 900
as a reserve. Sir Samuel Montague, in a
recent article published in Littet'S LiUlRg
Age, man Of long. experience in Lon
bard street, portrayed more wildly than
the gentlemen who take the opposite side
OF this question that her financial system
was like pyramid standing on its apex;
asgreat superstructure of credit, which. if
people lose their confidence, would be
toppled over on account of tie INSULT
cheney OF the base of gold on which it
rests, and he says that such would have
happened, and the English bank would
have gone to pieces as the result of the
Barings failure had it not been able to
obtain gold loan of SO, O0o, 900 from the
Bank OF France.
Now, the necessity for gold is indicated
by its demand for coinage. can demon
strate, | think, to the satisfaction of any
gentleman upon this floor that the gold
supply of the world is inadequate. take
the figures for 1889 In that year there
was produced $40 ,000, 600 OF gold through
out the world. DIR. Soetbeer estimated
that there was consumed in the arts In
1856 $50, 900, 900, and that the amount used
for such purposes was gradually increas-
ing.
In the report upon the mineral indus
tries of this country it appears that the
amount consumed IN the arts in 1880 in
this country alone was SO, 900, 600, and in
1890, according TO the estimate of the di-
rector of the mint, 1t had risen to SIS,
COG, 600. Therefore, it would be a reason
able estimate TO say that the amount Of
gold consumed in the arts throughout the
world in 1889 was $40, 600, 600. Taking
that estimate, there remained $50, ZOO. 900
for coinage.
Now, what was the amount coinedf
One hundred and sixty EIGHT million dol
lars. After deducting for use in the arts,
you end Sis. 600, 600 more gold demanded
for coinage than was produced that year.
That meant, of course, recoinage by
one nation of the coins of another, SO
that what one gained another lost This
demand Tor geld was so insstiate that it
overcame the CiBt inertia, the cost Of
transportation, the expense of a double
or triple mintage, and of the premium
(Which has been spoken of here as being
as high as and 2 per cent? which one
country charges as & penalty upon the
expectation OF its gold to another.
Now, shut down the silver mines, from
which one-third to one-haIf of ali the
gold produced: comes, take one-third
from S120, 000, 600 and you have $50, COO, 900
remaining. and in but g few years, if not
already, the demand for gold for use in
the industrial arts will encroach upon
your original stock. Then think of the
millions, according to the estimate of the
Jevons, by which the gold stock annually
shrinks from wear and loss of coins. And
vet men dream of universal gold mono
metallism.
No wonder that we look with trepida-
ton upon the passing to and fro between
countries of few million dollars of gold.
Austria-Hungary sought to get upon g
gold specie basis and passed a law to that
effect converting her taxable silver bonds
into gold bonds. She put them upon the
market. though bearing per cent. in
terest, at 90 or 90, and endeavored to get
the gold, but she could not get it any
where IN the wide world until she came
over to America to fitch it from the
treasury of the United States.
That was the reason why last year
So, ZOO, 900 of gold left this country. But,
notwithstanding the great sacrifice Aus
ia-Huugary was willing to make to get
upon a gold basis, she could not do it,
and only month ago the news was
flashed across the ocean that the time at
which such specie payments were to be
resumed was to be deferred till 1895.
Then there ceased to be such demand
for gold and 1t was permitted to flow back
as It has been doing lately.
Now It is supposed &c take, to get upon
aggregate Of the premium upon gold over
the incontroyertible paper money. Re-
member that Austria failed and that the
result of her attempt was to create disas-
TO the business interests of the world,
causing q financial crash in England
ifsesf, and then suppose that Russia and
India and other countries throughout
the civilized world should make the same
effort, what would happen?
In 1916, when England adopted the gold
standard. such as the increased demand
for gold that there Immediately resulted a
fall in the prices of other things. That
led TO a general financial disturbance
which was depicted by Mr.. Clay, most
eloquently in 1870, pointing out the dire
disasters which had come upon our coun-
try.
Why. sir, the idea of universal gold
mouometaIism has been justly described
as Utcpian. 1t is an effort to cover the
financial bed with golden blanket which
is not big enough. You pull it to one
side ard the other suffers from exposure
1t is indecent even to attempt it. What
Is the remedy? We have found the cause.
The dream Of the monomefalist is idle. IT
is an iri6esceut dream of faulty and folly
resulting from ignorance. Applause. I
Why. sir, the remedy is to restore silver
the functions of money which it has Dos
sessed il all ages-so universally recog-
nizcd for three thousand years as to be
regarded as almost, If not quite, an ar
raneement of nature itself.
The real cause of the widespread de-
r1ression is found in the fact that, during
the past twenty years the quantity or
supply of primary money has not kept
pace with the increase of population, OF
business production, and the growth
of commerce. The use OF money
has been demanded in new and
rr~ f1nIr 1frv IN