The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1894-11-13
RESULTS OF CURRENCY CON-
TRACTION.

preston which now prevails over the
whole world is due to the successful
attempts made by the leading CONNER
cial nations to put values everywhere
on a gold basis. The world'ssupply of
gold and silver at their proportionate
value is very evenly divided between
the two metals. To demonetize silver
and put upon gold the entire burden of
furnishing the metal basis for money is
practically to halve the price of every
thing that is produced
It is 90 years now since this process
was begun by the demonstration of
silver by the American Congress. That
mistake was partially repaired when
silver was demonetIzed by Congress in
1873. But in the meantime Germany
and some other countries had also de-
monetized silver. After three or four
years of prosperity following the re
monetiz alton of silver the cry was
raised tina the silver dollar was dis
honest, because hostile legislation had
caused it's depreciation. So opposed
was President Cleveland to the further
use of silver that a month before he
became President, in 1885, he wrote a
letter urging that all further coinage
of silver dollars be stopped.
Congress did not change the law as
Mr.. Cleveland had suggested, but under
his administration the policy Of count
ing the government reserve to be only
the gold that was in the treasury was
fully established. So while the con
gressional law of 1873 provided for coin
ing silver dollars and declaring them a
full legal tender, it was possible by sue
cessive secretaries of the treasury reck
oning only the gold they had as avail
able reserves to make this law of no
effect, as it was under the administra-
ton of Mr.. Gle Gland and Mr.. Har
rison.
1t is very questionable whether the
resumption law of 1879 could have been
successful had not the silver remOneti
zation of 1873 made silver available for
paying all debts. But during the past
eight or nine years the law of 1878 has
been nulliied, and by the act of the
Executive Department this country has
been practically placedo on a gold basis.
This was made worse by the action Of
Congress last summer and, fall in re.
pealing the law, requiring government
purchases of silver without, at the
same time, liking some attempt to
place silver as money or an equality
with gold.
AS the result of these various con
spiracies against silver, production of
everything in this country has for a
number of years been made upon a
falling market. This is the most dis
~couraging condition possible for all in
dustries. Each year the price of what
is so produced falls, and as business is
now everywhere done for small profits,
this profit is destroyed and a loss is
recorded in it's stead. The only thing
which constantly rises in value is gold.
That will each year buy a little more
bLCLL4 ~ JUN GAO cal OClO4O. AIAS 10
the reason why there is in all countries
such a paraly sis of industries and pie
thora of idle money as has never before
been known. It is the natural result
of afinancial policy which makes every
body afraid to engage in productive in
dustries, by making them continuous
ly Improbable.
There is a growing protest, not only
in this country but among producing
classes the world over, against this con
slant depreciation Of the value of every
thing except gold coin. 1t bears hard
est on the large debtor class, who r
forced to produce twice asmuch to pay
interest and principal of debts as was
required 20 years ago. But perhaps the
most oppressive feature is the discour
agement which continually declining
prices offers to every productive indus
try. A man who al get paying work
may we'll bear with some losses, but if
his work no longer pays a profit, what
is there that he a do9
The restoration of silver as money on
an international basis is the only effect
i've remedy to set to work the wheels
of productive industry. Of course En-
glish capitalists are opposed to this
policy for the reason that England is
the great creditor nation of the world
But the paralysis of England's indus
tries by the constant decline in prices
has wrought ruin to it's agricultural in
terests, and is now beginning to be felt