The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1893-03-18

in Europe, and there followed after this
the closure of all the western minis tC
the free reception of silver. There has
since occurred, and the occurrence is the
consequence of this monetary change, q
fall of prices which is on a scale unpre'
cedented in the world history. The fall
of prices since 1873, according to Mr..
Lauerback, the economist, and Other
authorities, has been not less than 81
per cent, so that the appreciation in gold
during that period has been so per cent;
in other words, two s0vereigns will now
buy what three soverelgns did in 1878
This fall i'll p%rice-this rise in the value
of standard money-has seriously com
promised the position of all debtors
whether nations or individuals. 1t is
great mistake to suppose that England
being a creditor nation" has profited
by this vast appreciation of debts. The
weaker states which owe us fixed sums
of gold have either repudiated the prin'
cipal sums orhave cut down the interest
they owe to England.
1t is quite evident that Il financial
disturbances, which date back to 1873
have by no means eliminated; indeed
it is the fear of what is to come after
that is driving the more intelligent
representatives Of our great city money
houses in the direction of currency re.
form. Prof. Foxwell continued that to-
day all the teachers of political economy
in our schools were agreed that the
theory of bimetallism was correct; but
he said it was not the duty of the pro-
fessors to say more than this; the policy
or the necessity and justice of the re-
form VAS a question not for the pro-
fessors, but for public opinion to decide.
Mr.. Balfour, however, was entirely in
the right in stating at Manchester re-
Gently that the weight of authority was
ON the side of bimetallism. In Holland
the other great creditor nation which
had trade relations with the silver-using
east. the consensus of opinion, both
academic and public, was long since
committed to the concurrent legal ten
der of the two metals. There is, the pro-
fessor continued, nothing which to-day
bars the road to this reform, everywhere
except the attitude of this country.
France, in the scramble for gold which
has followed from the revolution of
1873, has so secured the lions share of
that metal that she is safe; not, indeed,
from the collapse of prices, but at least
from n monetary. crisis. Germany also
will not give her gold except at a pre-
MUM. 1t is in London that the gold
strain has come to the breaking point,
because our system obliges the Bank of
England to denude herself of her gold
just when that gold is most needed at
home.
After dealing with the Indian revenue
difficulty and depreciation of the rupee,
which were both checking our invest
ments in China and India. and thwart-
ing the expansion of our manufactures
to the myriad peopled east, the professor
stated the remedy for our currency
troubles-the recurrence, by interna-
tional agreement, to the old joint stand
ard of the two metals. No one has pro-
posed "two standards. That is the very
system we objectto to-day, a gold stand
ard in one portion of the empire and a
silver standard in the other. What we
advocate is the holding of the bank
reserve in the two metals, and the per-
mission to the debtor to pay in which
ever metal he chooses at the ratio fixed:
under which conditions and considering
the enormous mass of fixed debts and
obligations, the demand of the debtor
classes for whichever metal became
temporarily more plentiful would main
tain the ratio. Certainly this was the
case before 1878. In the beginning Of
the century three times as much silver
was produced as gold: then, after 1919,
three times as much gold was produced
as silver, and yet in consequence of this
option given to the debtor the ratio was
maintained. There is of course no need
that the silver in the bank reserves
should be coined. The silver can be held
in bars as gold is to-day, so as to secure
the notes issued. 1t is true, the professor
said, that the London bankers are still
opposed to the change we advocate. 1t
is their view, and, as | think, a short
sighted view, that an increase in the
value of the gold they own or have
loaned, benefits them; but such a benefit
risks the ~solvency of their debtors, and
among the country bankers to-day the
view is strongly held that the rise in the
value of gold, or; in other words, the
fall in the value of the security, has now
gone to the utmost limit of safety, il not
beyond.
In conclusion Prof. Foxwell said that
mere gibes and nee against an inter-
national agreement were out of date,
and that, in view of the very serious
position, in which this country now
found itself, the financial paralysis of
India and the actual fulilment to the
letter of all the warnings Of Boyd
Welewaki and ~I.aveleye in 1873, it was
iiSoihpChl vi tHlo iidtioi w SCiiu uoic-
gates to the Brussels conference in May
next who would attempt 10 secure a
lasting monetary peace. The scramble
for gold has now gone far enough.
After some questions from Sir Will
liam IIouldsworth, NJ. F., Mr.. Howell,
M. r., Mr.. Barr Robertson and Mr..
Bagot, NJ. T., to which Prof. FoxWell
replied. Mr.. Smith Barry, NJ. p, pro-
posed a vote of thanks to the professor
and Mr.. Grenfell to the chairman.
The Odessa Democrat thinks that teIe-
phonic connection with Lexington a
thing greatly to be desired. So do we.
In fact Lexington ought to be connected