The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1894-05-10
SILuER IN YHK KASY
Destined to Awaken China
from the Sleep Of Ages.
MONEY "A STIMULUS TO INDUSTRY

Il
the Same Business
Industrie Are Revivlng,
Mr.. Moreton Frewen, in the remark
able letter printed in the columns of the
New York Press recently, and reproduced
in THE MAIL last week, suggested that
'the stream of abundant (silver) money
rejected by Europe" may perhaps "be des-
tined to awaken China from the sleep of
ages" For the benefit of readers who
may not have given close attention to the
subject it may bo interesting to inquire
what is the nature and the method Of
operation of the force thus Indicated.
The answer can possibly best be given
by reference to the case of India.
In the first place, no we'll informed
man can doubt that the presence in any
country of large supply of metallic, and
therefore thoroughly sound, money-that
is to say. actual money; money that does
not demand redemption as paper money
does acts as strong stimulus to1ndus-
try of every kind. 1t is a safe assertion
that no nation ever had, or can have, too
much money Of that kind. Money Is the
universal tool of commerce; the univer-
sal solvent of indebtedness; the machin-
cry without which not a movement of
commerce can be made. Always when it
is IN abundant supply, there is prosper
ity. Always, when there is deficient
supply, there is a hindrance to business,
and therefore suffering exactly proper
toned to the degree of the deficiency.
Now, one of the effects of the rejection of
silver by Europe and the United States
twenty years ago was to enlarge the vol
ume of the current of silver that flowed
to India and to other Oriental countries
which use silver alone for currency pur-
poses. But there were two other results.
The advance of the value of gold, caused
by silver demonetization, compelled the
Indian trader who would buy from Eur
ope to pay a premium upon gold for that
purpose. This operated to discourage
such purchasers and to induce him to
try to supply his wants from domestic
sources. Added to this was the fact that,
as SILVER prices have not t1uctuated, trade
between the silver using countries could
be conducted upon basis of stability
and certainty, while trade between
gold using England and silver using
China, for example, was reduced because
of the fluctuations of values to something
like gambling venture. The conse-
quences of a large home demand and of
a new opportunity for foreign trade ap-
peared in the swift and wonderful devel-
opment Of the cotton manufacture of
India and of the export to eastern coun-
tries of Indian cotton fabrics. Thus In
dia, despite the increased burden of her
foreign indebtedness caused by the rise
OF gold, made great headway in the arts
of civilization and in tho direction of in
dustrial dlversifcation and self depen-
dence 1t was to check this growth and
to stop formidable Indian rivalry with
Lancashire in the East that the British
Government forclbly demonetized silver
in India last summer. The Indian ex-
port trade at once fell away almost to
nothing.
But this kind Of interference can not
be attempted in China, Japan, Mexico
and other silver using countries. And
so we find China starting cotton manufac-
lures with the best Europeon machinery.
Japan is going into the same business
and into the manufacture of silk fabrics
under similar encouraging conditions, SO
that both countries before long are not
unlikely to supply their own people and
the people of the East with materials for
which hitherto they have been dependent
upon Europe and the United States.
Furthermore, there is no little danger
that some of the fabrics thus produced
may penetrate our own markets. Al
ready the silk stuffs OF Japan, made with
cheap labor upon high class machinery,
have appeared in this country to vex the
souls of American manufacturers of silks.
In Mexico also, although the burden of
foreign indebtedness payable in gold
bears with great heaviness upon the coun-
try, the general prosperity Of the people
has never been so great as it is now; and
for the reason, as IN other cases referred
to, that an abundance of hard money
and the protection afforded by the prem
ium upon gold have had the effect to
awaken the people to new industrial