Southwest-sentinel. [volume] (Silver City, N.M.) 1883-189?, 1893-02-28

then quadrupled, while the annual
supply Of silver was, IL anything,
growing less. The present out
put Of silver is not greater in pro-
portion nor more likely to contin-
ne; but, instead Of allowing it to
flow freely over all lands 70 work
similar b%eni6cent revival Of profit
able trade like that effected by the
new gold, immense effort is being
put forth to check its passing into
ciruclution. What difference can
there be in the effect upon the
general business of the world Of
the increase Of one metal now
than of the other then? Bagehot
who advocated the gold standard
for England, did so because it suit
ed the circumstances of domestic
English trade but he feared a gener-
al change. The present conditions
Of English home commerce may be
best suited by a gold standard, but
it does not follow hat English fl
nance would gain by a universal a
doption Of the English standard of
money, because English trade lies
chiefly with the silver using ma
lions. The present disturbance of
the exchanges is mainly the result
Of the present agitation against sill
yer. II is worthy of careful note
that from the year 1879 to the year
If the demonstration of silver by
Germany, the ratio between the
two metals oscillated very slowly
within the limits of | to 10 and !
20 16; that was the extreme limit
Of variation during two hundred
wears; but the heroic surgery OF
Germany, which cured a limp by
cutting off a leg, and the obstinate
attempt to discredit that which
since the time of Abraham, has full
filed the function of money has
packed into twenty years more dis
turbances of the exchanges than
are shown in all the previous rec
ords of history. A progressive ma
ton needs an expanding currency,
and specie is the only safe basis for
expansion. If Germany, with the
war indemnity in hand, found the
task difficult and costly, how ru-
nous will it be if the other western
nations attempt to throw out sill
yer? There is not gold enough IN
the world for such a task and the
present rate of production has fall
len off twenty-five per cent.
1t is clear that from time beyond
record, the precious metals-silveI
and gold-have been the ultimate
measure of all other things. No
two distinct measures but one com
posite measure throughout the
world. If owing to local circum
stances the use of one prevails tenn
norarily over the other in an!
country the Exchanges nevertheless
cqualize prices 10y the automati
operations of natural laws: bu
when Legislators enhance the pur
chasing value of gold by cancellinl
that of silver, they disturb price
violently and legislate values from
the pockets of one class into thos
of another. For prices have beeI
adjusted throughout the ages to tn
total sum of the precious metals
and. if one of them be eliminated
the total values of all other res
property must shrink to the redu
ced measure; for the two sides c
an equation must be equal. The
loans for long periods must becom
heavier to a proportionate amour
for two bushels of wheat will cour
in liquidation for one bushel, an
two yards of cloth for one yard
The produce of the farm and fact
~ will not pay the mortgage, IL
margin of the farmer is swept ava
and the fixed capital of the mani
facturer is reduced to half its valu
In process of time the new lev
will be reached and all proper.
will have settled down to a ne
measure of value; but a continuol
contraction is like the scarcity
the seven lean years of Egypt,
changesth the tenure even of the Ian
Hewers of wood and drawers of W
ter will continue in all conditio
of society to exist; for those vi
do the disagreeable work OF {
world will always receive enouI
TO keep themselves alive; the pc
will always be with us, but t
foundations of society viii be me
r 1900