The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-03-20
4 man FINANCIAL PROBLEM.
Can the Waited States or Anv o her Destor
NsiIon ArIntnin the single q I'D SInnanrdl

4 man FINANCIAL PROBLEM.
Can the Waited States or Anv o her Debtor
NstIou h-intain the Single Cold sianarrdt
To THE EDITOR OF THE sUS-Sr In order to
maintain the single Gold standard in any
country there must he kept constantly on
hand gold In some proportion to the currency
TO be redeemed. Assuming that the amount
now in this country is sufficient to secure at all
times prompt redemption In gold Of all Other
forms Of money. then, under those conditions.
II the United States. or the people Of the
United States. owed nothing to other countries
and other countries owed the United States
nothing. It would only he necessary for us to
sell commodities enough to pay for what We
buy elsewhere to keen even with other coun-
tries. To be able to do this. however. prices Of
the commodities we sell must be as low in the
United States as anywhere else. otherwise we
could not sell enough to pay for what We i'm
ported. In case exports in this way are made
to balance imports, no gold would have to be
transferred either way. and there would be no
disturbance In monetary conditions. But. II
We fail to sell comm odities enough to pay for
what we buy abroad then gold must be trans
ferred to cover the difference; on the other
hand. IL the balance be In our favor. then gold
would come TO US. Under these conditions all
that would be necessary to enable us to COM
pete on even terms with other countries. would
be to keep prices OF commodities 80 dealt in at
the international level Of prices. by keeping
the money volume properly restricted: other
wise the volume OF money would be autom att
cally reduced by the expectation OF gold.
But take the situation as It actually exists
between England and the United States. or be-
tween England and India England has In
vested from ten to twelve thousand million
dollars In other countries. the income from
which amounts probably to not less than
$500 900. 900 annually. which Is more than tho
combined value OF our entire wheat and cotton
crops for 1893. Tho United States. on the
other hand. according to conservative esti-
mates. owes to other countries. mostly to Eng
land. to be paid annually as interest, $780,
100000 to S250. 900. 900. That Is. in order not
to be obliged to part with gold to settle bal
ances. We must not only sell commodities
enough to pay for what We buy. but to pay
5000. 100000 to $3.50. 900. 900 interest on what
We owe 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 bur OF US 5000. 900. 900 to
$3.50 100000 worth Of commodities more than
We buy % the rest OF the world. Nor can
tariffs materially change these conditions. It
is admitted. however. that to tho extent q
-, $500. 80 " s"ees iu1po..s. ~ wiz 'enu "
1890. - -. -. -, 49," ous
80. "a ,ho-.nr ., 49,. 80 a.. 800,
IN so ,.r t.nd 90 r.ntr.I,,. a. -. =,
ch.ok ., n, nor.s ITnaa. e.. sat.,s :.
Iii h. ..an r. ,r,,,a -. ns ~. .,,.a,.s
Es.n nm nricas Nv .nrr.rcv ~ or.dj, IN e.,io,s
sn.b dav,oa. ,v,i, oniv a., lac ~. .nr,'Isin.
~ cola nv mai Inc =, I'm no. mi. ~ Urnh.ts.
.ova with oomrod,,i.. .na -. "a q. ar.
adj valiant contraction ~ orsdIt oIw.vs at.
In folIowad INV a disns,rors coll. no. ., 49,
Now tnrn 70 FnaI,nd n crsditor n.t,on s.I,n
an animal in.om. ~ s5oO 600 400. ah. 80.
i'm mort $500 600 OOn worth -, nomnodi,i..
more thar .bs srnor,s ,.,,hont ha.Ina -
trans,sr an onnca ., so,d 70 It'll b.i.n..s
II "a NOT naca.sarv th.r.tnra 10, 49, =,
commodItis. int.rnationaIIv da.I, n 40 -.
tant AZ no ,ow . ,ax.I a. Gno,snd ~. =. 80
countri.a Sba does NOT ned 20 ALI a. rnu.h
a, sbe hpvs and navsr arn.cts 20 Indiv,dn.Is
nav and do snfrsr th.ra as h.,a hut a. na
tIon Fng,nnd stands On var dicarart ,ronna
from That on which tha Irni,ad S,a,.s go
Nor ia this All. England controls India abso.
IuteIv and can NAV i'm norts from Irdi. ..aInst
imnor,s ,ror, az IrnI,.d s,a,a. "a ,h.-nh~
kaan down nrjcaa In both .o,rtr,a. Th,s q.
exactly what England IA now doing ssnac,aIIv
With whoa, and cotton
on eours. IN liam Of trans,.rrin, COLA % nav
interast or in sstt,smsnt q, haI.ness - go
sail bond. al lopo a. onr .,sdI,ors ,,,m,s
than. Tn oth.r words wa can civ. 80 go
for interest due "a long as On, cr.d,,ors lii
he .a,i.ead vith that lina ., n.vman, 80
that IA really that wa nave h.an do,nn 80
very large sxtent for many vsars Rnl En-,
road leads necessarily 10 bankruntcv ana ,hs
longer It is followed the worse our condi,ioD