The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-02-05

money supply for India and the United States
and the extension Of the single gold standard
to Austria Hungary. change the gold level to
as great an extent ne the change in the early
part OF the century. or rs that which resulted
from the act OF 1873? The extent of the an
probation Of gold under these new conditions
cannot be foretold; but the changes made in
the monetary situation during 1893 have been
the greatest in the worlds history. and have
added more than $50. 600. 900 OF people to the
number Heretofore competing for gold for
money supply. which cannot otherwise than
materially affect the value Of gold the world
over.
But whatever may be the effect OF this
change on gold. one fact may as we'll be ac-
copied first as last for Il cannot be escaped;
that IL. IL gold Is made the pricing instrument
the results OF this measurement must be ac-
cepted. In other words. we cannot have the
single gold standard and at the same time
maintain q range Of prices inconsistent with
this standard. The idea that We can have a
gold standard and then. by tariffs. or By selling
bonds. or by Issuing more currency. or by ex-
prices Inconsistent with the standard itseii
might as well be given up first as last. for II
must be given up.
bankers seem to think that IL we have a gold
standard u makes little difference about the
n
world IL is quality and not quantity, they
say. that concerns US In the minds OF such
and kept, ike the pound Te WsisSt n IN tSc
archives 81 tho Government. is ali that ia re-
4 ba, The rest may be credit or ANYTHING.
Reserves of the Bank Of England there was no
question about the quality OF its gold or its
ed. TWAS sovereiGns. or what would make
sovereigns. that the Bank must have. and the
Bank OF France was accordingly appeal cd to.
not to make good any defect in the duality OF
the gold or OF tho money on the British side OF
Indeed, one m ight ns we'll expect TO sail shin
on faith. only touching the water now and
then. as to- TO- expect to conduct the vast bust.
only now and then to gold as a standard OF
value A vessel may ride for n moment on the
can safely, rest only on the level sea. SO bust
ness may he tenn porarily supported by e conf
waves Of credit, but settlement day will come
and when It comes the tumble begins and
not ride always from crest to crest OF credit edit
waves.
H. therefore. we decide to go to gold basis,
as the result OF increased demand Tor it. prices |
must follow in the opposite direction; and all |
Kind to maintain range OF prices. above the |
level OF gold must In the end prove futile. We |
might as well propose to increase the size OF |
tho bushel measure. and at the same time ex- |
pect our wheat crop TO show inst as many |
after contain l2O minutes OF 90 seconds each,
but that there shall still be twenty -four hour:
in \ day.
=, The sooner. then. It is understood that with
the single standard OF gold it is impossible to
have large volume Of currency. expanded
at the sveI q gold. the better It viii be- for all
interests. These conditions do not belong to-
with the bimetallic standard a given volume
o. paper paper currency. With a proportonate ex-
range Of prices. follow in du. relation. il ought
70 be apparent 70 any one that with the single
standard =, Of gold the currency. the bank cred
iuced. Some re latlon there must certainly
be Letween standard money. money OF iinal
,rCdt The order is this: With the gold stand nd
.rd less currency more restricted bank cred
! larger volume OF currency more expanded
Iank credits. and a higher range OF prices;
i cnrrency. pxtendsd 1ans crsdits 0i 6iRs
wages Y and high range OF prices with gold as
h s single STANDARD must end IN failure and
,ushe measure and have II hold more at the
anne time LEGISLATION Is utterly Intellectual
. change this law.
The only way therefore. to maintain the
,old standard and keep gold in this country
; 10 reduce the volume OF currency. reduce
he attempt TO maintain the gold standard by
cling bonds and buying gold with the expec-
I gold permanently here. is utter folly: and
ny one who believes the gold standard can be
I the fnSncss Of the county. there e is snfr re
eat absolutely hut one way TO keep gold hers |
T 10 maintain the gold standard. and that lie
0 cut down prices To- ut the standard. or in
ther words. accent the Results Of gold as the |
riclns Instrument We may temporarily hor-
ow gold but We cannot buy gold aud keen il |
$ ours except 10y paying for II as dearly with
ur commodities as other countries pay.
Obey. or ask whore labor will go or where
roperty wi go. or where the debtor will
tani, or what will be the consequences 10 !
lortgagsd property. or to Insurance. ana trust
esq The answer is. the time to think Of these
lings is before II 10 determined 10 go 10 the
old basis. All am saying is that We cannot
{ once go there and at the same time stay
istrument. and at the same time by iegisia-
on or legeTdemain, by credit bubbles by
lrins or ~ confidence in something impos-
ME maintain range oil prices inconsistent
18th that standard
Will all countries suffer alike in the procsss
reimbursement Of things 10 the altered none
ny conditions Not necessarily; the situA- !
on Of all countries is not the same. Pricss
u! fGll ~ gold standard countries aud indus [
atoms Will not suffer in the same degree. Z
EDITOR nations VIII sunsr most. Indeed il is
question whether any debtor nation can | .
-rmanenily maintain the single gold stand
can do 50, Weaker natiuns ike
pain, Portugal and Italy have already found .
mlpsslhl" 10 MAINTAIN a gold currency or :
zen the COLL standard in their home circula-
certainly cannot maintain the single gold J.
Andard by going into debt Tor the gold.
The relative conditions Of the United States
~ lngland, AS nations. In the matter OF mAia-
Ne fact that the income 81 England from In. d
rest on Investments in ether countries Il not |