The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1894-02-17

ter. As well expect to make smaller the
bushel measure. and have it hold more at
the same time. Legislation is utterly in
eifectual to change this law
III
The only way, therefore, to maintain the
gold standard and keep gold in this country
is to reduce the volume of currency, reduce
bank credits, and bring down prices and
wages The attempt to maintain the gold
standard by selling bonds and buying gold,
with the expectation of keeping in that
way larger volume of gold permanently
here, is utter folly and any one who be-
leves the gold standard can be maintained
in that way is unfit to have charge of the
finances Of the country. There is, re-
peat, absolutely but one way to keep gold
here or to maintain the gold standard, and
that is to cut down prices to fit the standard,
or, in other words, accept the results of gold
as the pricing instrument We may tenn
porarily borrow gold, but we cannot buy
gold and keep it as ours except by paying
for it as dearly with our commodities as
other countries pay
Do we shrink from the consequences of
this policy, or ask where labor will 90, or
where property will go, or where tho deb
tor will stand, or what will be the conse-
quences to mortgaged property. Or to in
surance and trust companies that depend
on this class of securities? The answer is,
the time to think of these things is before
it is determined to go to the gold basis.
All | am saying is that we cannot at once
90 there and at the same time stay away
We cannot make gold alone the pricing
instrument, and at the same time, by leg
islation or leserdemain, by credit bubbles,
by tariffs, or by confidence in something
impossible, maintain range of prices in-
consistent with that standard.
~.
Win all countries suffer alike in the pro-
cess of readiustment of things to the alter
ed monetary conditions? Not necessarily;
the situation Of all countries is not the same.
Prices viii fall in gold standard countries
and industries will suffer in all such coun-
tries, but all nations will not suffer in the
same degree. Debtor nations will suffer
most. Indeed, it is question whether
anydebtor nations can permanently maintain
the single gold standard. 1t is very GER
tain that only the strongest commercially
can do so. Weaker nations like Spain,
Portugal and Italy have already found it
impossible to maintain gold currency or
even the gold standard in their home cir
culation. The trial of the United States
is to come. We certainly cannot maintain
the single gold standard by going into
debt for the gold.
The relative conditions of The United
States and England, as nations, in the mat
ter of maintaining the gold standard may
be seen in the one fact that the income of
England from interest on investments in
other countries is not less than S500,000,-
900 annually, and is probably more. This
is more than the equivalent of the value
of the entire wheat crop and cotton crop
of the United States for 1898. That is.
if, instead of her interests abroad, England
had handed over to her our entire wheat and
cotton crops she would be no better off
than she is now with her foreign invest
ments.
On the other hand the United States is
required to pay, on her debt to England,
interest equal to more than the value of
our entire cotton crop. Are these two
countries, then, as nations, equally interest
ed in maintaining the gold Standard And
yet, to our shame, we subject our financial
policy to the dictatiou of foreign interests.
Washington, Feb 8 A. J. WARNER.