The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1894-05-17
Thoroughly Condensed and
Interesting Article.
Bl-ME7ALLISM is BOUND TO WIN
Lctter to the New York SUN,
Showing the Fallacy OF En-
deavOring to Sustain Sir-
gle Gold Standard - Etc.

The New York Sun has recently pub
lished letter from the pen of A J.
Warner, that for conciseness and thor
oughness equals anything that has lately
appeared op the silver question. After
showing that if there were sufficient
gold in this country to redeem all other
forms of money and that if there we're
no indebtedness between this and other
countries it would only be necessary for
us to sell commodities enough to pay
for what we buy elsewhere to keep even
with other countries, Gen. Warner says:
''But take the situation as it actually
exists between England and the United
States, or between England and India.
England has invested from ten to twelve
Thousand million dollars in other coun-
tries, the income Of which amounts
probably to not less than S5,O0O,000 an
nually which is more than the combined
value Of our entire wheat and cotton
crops Of 1893 The United States on the
other hand, according to conservative es-
Inmates, owes to other countries, mostly
to England, to be paid annually as inter-
est, 5000, 100000 to $3.50 100000. That is,
in order not to be obliged to part with
gold to settle balances, we must not only
sell commodities enough to pay for what
we buy, but to pay S20OOO0O00 to $780,
/ 100000 interest on what we owe to other
countries besides. In order to do this,
prices in this country must not only
come down to the international level of
prices, but must go enough below that
level to induce the rest of the world to
buy of us S200,000,0O0, to S25OOOO,OOO
worth of commodities more than we buy
of the rest Of the world. Nor can tariffs
materially change these conditions. Tt
is admitted, however, that to the extent
a tariff operates to check imports, it will
tend to reduce the amount to be paid
abroad; but If it operates to raise prices
Of the goods we export, and thereby to
check exports, then it will, in so far tend
to neutralize the effect of check on i'm
ports. Under these conditions, it will be
seen how futile must be the attempt to
keep up prices by currency or credit IN
hations. Such devices will only expedite
the expulsion Of gold by making it I'M
possible to pay what we owe with COM
modties, and as gold is exported vio-
lent contraction of credit always sets in
followed by disastrous collapse Of
prices.
"Now turn to England, creditor ma
tion, with an annual income of S5O0,OOO-
COO; she may import s5O000OO00 worth
Of commodities moro than she exports
without having to transfer an ounce of
gold to settle balances. 1t Is not neces-
sary therefore, for prices of commodities
internationally dealt in, to be kept at as
low a level in England as in other coun-
tries. She does not need to sell as much
as she buys and never expects to. In
dividuals may and do suffer there as
here, but as nation England stands on
very different ground from that on
which the United States stands Nor is
this all. England controls India absol-
utely, ond can play from Ind ia against
imports from the United States, and
thereby keep down prices in both coun-
tries. This is exactly what England is
now dong, especially with wheat and
cotton.
"Of course, in lieu Of transferring gold
to pay interest, or in settlement of busi-
ness, we can sell bonds as long as our
creditors will take them. In other
words, we can give new notes for inter-
est due. as long as our creditors will be
satisfied with that kind Of payment, and
that IS really what we have been doing
to large extent for many years. But
that road leads necessarily to bankrupt
cy, and the longer it is followed the
worse our condition becomes The con-
clusion, therefore, is irresistible that no
nation largely in debt can permanently
maintain the single gold standard. And
historically no debtor nation has ever
been able to do so. Italy few years
ago bought with bonds, on which she
now pays gold interest, S200,000,0oo in
gold; but in few years it was all gone
and gold is now at premium in Italy
of from Is to 20 per cent. Indeed, even
he1 coined silver has largely gone TO
J France, and she is left at last with only