The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1894-04-12
General Advance in Trade
and Production.
| PROF. EDWARD SUESS' OPINION
Becomes Transition
Measure Grouping of States
tiOn OF the Earth-Silver as
standard OF the Future.

Edward Suess, professor of geology in
the Vienna university, Austria, has
lately published treatise on the fnan-
cial question which occupies one hun
dred pages and is among the ablest
arguments yet advanced from foreign
source in favor of silver. Prof. Suess
says in part:
We assume the case that the United
States, despite. all warnings, establish the
free coinage of silver. At one blow
thePan- American standard is established.
All Asia joins in. The gold standard IS
limited to Europe and the English colo
MES, but without India. That we said,
is the partition OF the earth. This idea
of partition Of the earth into u silver
sphere and gold sphere has already
come forward repeatedly. In the none
tary conference Of 1878 Mr.. Goschen, as
representative of Great Britain, stated
that country indeed clung to the gold
standard, but that it suffered continual
loss in India, in order there to keep open
drainage channel for silver. Might it
not be feared that with the extension of
the gold standard there would ensue
fall of silver, rise of gold, and a CORE
spending fall in the price Of commodities?
The general double standard seemed to
him very Utopia, but the adoption Of
the exclusive gold standard was another,
and to his eyes, an entirely wrong one.
1t must be admitted that the represen-
tative of Switzerlann, Mr.. Feer-Herzog,
merely drew the logical consequence Of
these words when he proposed the parti-
tion of the earth. Gold was to serve the
advanced, silver the backward nations.
To-day, when the value Of the two
metals have gone SO far apart, and when,
with the continuance fpresent condition.
there is a prospect of futher divergence,
one may survey with greater dlstinctness
the possible consequences of these ideas
of 1878. Last year Prof. Milewski dis
cussed this subject and showed that in
part the PARTITION has already taken
place, how at the dividing line between
the two areas the rate of exchange is
constantly oscillating, and how this con-
dition of affairs represents precisely
state of ceaseless unrest and uncertainty,
as contrasted with the time of tranquil
ity which existed through long period
during the prevalence of the double
standard.
These are already the consequences of
the first steps toward separation; as yet
the great second group stands between
the mono-metallic countries, the gold
group on the one hand and the silver
group on the other. A sharp dividing
line is seen between England and India;
here advantage to the bondholder, dam
age to the labor; there advantage to pro-
duction, loss for the government. Is
there in this really permanent advant-
age to the gold land?
But let us essay few steps on the
slippery path Of conjecture.
The consequences, so far as they may
be in manner inferred, would first con-
sist in general improvement Of condi-
tions, so far as this can be effected by an
approach of value of the two metals.
This approach would be caused on the
one hand by rise Of the value of silver,
which, however, would not be too great,
because the present purchases of the
United States are already effecting an
artificial rise; and on the other hand per-
haps for the gold area by a greater out
flow of gold into Europe.
The more remote consequences, how
ever, would be disastrous to the gold
lands. In the great silver area, which
comprises many states in need of money
there would occur perhaps at first inha-
tlon and irregularity; true, it must be
confessed that even nowadays there are
states with free silver coinage and yet
without too great imitation. In order to
bind the metal, more and more fully
covered certificates would perhaps be
issued instead of the partly covered notes.
In any case the production of goods
would make great, perhaps too great,
advance. In the gold area too there
would at first be improvement, but soon
there must ensue more and more con-
traction, fall of prices, injury to labor.
All obstacles now thrown IN the way
Of commerce by tariffs would dwindle
into insignifcance compared to the bar
rier that would be erected by the partl-