New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-03-21
EFFECTS IN CHINA OF THE FALL IN
THE GOLD PRICE OF SILVER"

To the Editor OF The Tribune.
SIR: The above subject is discussed at length IN
THE Journal of the Royal Statistical Society Tor
December 1sa} with deductions 80 interesting that
7 hog snace in The Tribune for a resume OF them.
"The Journals" article is taken from the "Ofnciai
Renort No 3c5 l%S" Of Mr.. q. Jameson, Her
Mai.stv's acting Consu.-Genera at Shanghai VINO
has studied Chinese trade movements under tne
most favorable conditions, and Tor a long period.
lie concludes that there has been no net import OF
silver into china for a number OF years put
slight net exportaton instead. or god too, tiers
has been a small bu; increasing How from CHINA
to Europe since the gold price OK SILVER began
10 fall Whence does China derive this gold for ex'
port? The laad produces but little OF the metal
mainly from Oh p.acers along the AMOR RIVER.
Only 4 tr.le comes in across tie Russo-Soerin
frontier The expectation cannot be accounted ior
from these sources. Mr. Jameson thinks that nearly
al the god which china is exporting comes from
the Old boards Of wealthy Chinese i&mlifs' tnesc
being drawn from their cover hy the unpreeedent-
ed.y high value of gold in Europe.
Mr. Jamieson's figures remarkably sustain the
view thu, the astounding change in the relative
values Of god and silver since 1873 implies no low
er!ng In the value Of silver. but consists wholly IN
an appreciation OF gold That in Mexico and in'a
silver has purchasing power since 49, -
long been known; but Mr.. Jamiesons tables pfo''-s
us with our first clear proof that tie waite me'ai
has held its own In China as well. Si.ver's record
silver prices have not only not risen. they have
fallen a tr;fe That is. the power Of given amounts
OF silver u buy goods has increased not dlmin-
lsheI. ! quot:
81 A. regards articles which are both produced
and consumed in China. silver prices have. on the
Whole tended TO decline. There is moderate rise
in few articles principally food stuffs but AL over
there is a decline Of about per cent
80 As regards articles of native origin exporter .
to foreign countries. the silver price has not ad-
vanced with the fail in exchange. Prices on the
whole almost exactly on the level oil the years
1870 10 1874
o. AS regards articles Of foreign manufacture OF
production imported for sale in China. the average
price in silver has declined very cons!ceraoV Inc
Chinese can now obtain their supplies at less COST
even in silver than they could twenty years ago ny
Is per cent In other words the p1rc M any
OF the classes of commodities, and has even Son,
sderaby increased in respect Of the Hrst ana last
on the other hand Mr. Jamleso assures US. the
power OF gold N SnIa IN tbe rates Of eS-
change IN now shiings VIII 1uy r %e a much
Touching the second class OF articles mentionei
london mainly CONSISTING of teas and silks, Mr.
Jameson offers the following instructive h!p0'"r
"one would be disposed to say prior that ne me
larger market would rule ana that the so.i pr he
made on the other side In that case the silver priSe
in China must rise. But does not aipe ar :, COM
so. 1t is believe. 0ell-known TACT IN me gIn
merclal world that it is much easier TO loNer p,.e
than raise them. If you can AFFORD 20 70 '~c
hafpenny a bargain is much more easiy srx0a
than il you are bound to stand out for rse .,
,nn i w0ES se fgow thsg on 10 m Of
change always made along the me Vi ,tS3ra
rriee iSa rhs but the London price that fails
Merchants operating on the usua prlnV'f 49,. ard
sell It in London at concession, than 10 STAND ou.
for old prices At home in order TO be ao'e ~ pay
The experience OF the last twenty years shows
that with every fall in the gold price OF sSy' IN me
has invariably been simultaneous loMStthS y. 70 70
god price of commodities In Europe. NE IA" Or =,
rousy been ascrbed to the sGarsy IN sS stocks by
Its extended use or to o S asepbd Principally
or entirely the competition OF the produce o, o
silverusing countries? II II Is iaSt eai ia
India and China and other silver-ls.ng eolnt,tles'
less rise than the fall Of silver snSua p,ooors3
then the gold price OF such produce wnen inpo' ~.
into Europe must necessarily have ia!leh Will wv
From this Point of view it is really silver thar nat
rules the world; 1t is the PURCHASING power ot yer
cheaper metal that The the cheaper me
will drive out the dearer toward ner no Sifferent
standards will the prices prevailing in the county, ~
OF the cheaper metal drag down prices az ,on, the
experience OF the past would not perhaps Ge 'i IN
rash to conclude that the prices OF eoih,oa y sair
quantity from silver-using countries must continue
to decline with every fsther fall in siyer IN vol
ume OF late years but this result has risen h O simply
from the ready sale which the export artc'e ho,s
country have commanded from forelshets assne de-
the old rates along with Chinamen's increasn'S, ~.
Sire for foreign goods The expectation wS St the
vastly greater than II is but FOR the iact Una, M
sending of rice wheat any cereal OUT y, 80
country Is strictly prohibited by law MI saa con-
believes that China will never become ebon,Inue 70
sumer Of silver though she cannot long IN the
EXPORT this metal The amount OF SILVER ~ ether
country is too small for that There ISL, .o ia 40
country in the world he adds whe apita could BE-
loaned so proitably whether for borroWett 70 pei
lender Interest is high, ranging from o !" - risi
cent commanding these rates NOT peea"' ~
Int because capital is 80 hard To get, ~ which
Relating az II does, to several s'apless 4, COM
the United States sells its surplus In Ionao oonnecy Of
ne,,tlnn with the East Mr.. Jamiesons pLorp,m,ateiy
4 still further fall in prices is sad; lei founded
shere can be li,tle doubt that II Is Wen -; gold
Tha ,on ~ wheat ana of cotton in terms Ui too
has followed that OF silver point area the chase
closely and too long 70 let one suppo world learn
ended now When will the western ", WI he func
that the policy Of admitting ony so'' ~
lion of full money Is runous! ,>, ,NDREWS
''o" VI ' ~ r. BENJAMIN ANp"H
prov,dence r. l.. Feb. II, 1871