The herald., 1894-04-13
BRINGING rae TWO METALS TO A
LEVEL.

The single gold standard people will be
confronted with perplexing problem
when Mexico and the Central and South
American republics follow the lead OF
Guatemala in refusing to pay their pub
lie debts and the interest on them in gold.
They will not do so probably merely he
cause they favor repudiation of their
Justly contracted obligations, but be-
cause the demonstration OF silver and
the great reduction OF its value az COM
pared with gold, brought about by arti-
fetal means as the result of a vast con-
spiracy between the money. changers
and the creditor classes of the great
centers Of finance, have placed it bey ond
their power to do so. When these bonds
we're issued-or the great bulk of them
the two metals were ct nearly a parity
of value. Now the silver metal, which
constitutes the money circulation Of the
Latin countries on this continent, is
only worth about 48 cents on the dollar
as compared with gold. This forces
those debtor countries to actually pay
their debt and their interest twice over,
and it is very doubtful if they can do so.
If they are confronted with an impossi-
bility, how can they escape from
their dilemma except through the
refusal to pay their bonds in gold ?
The purchasing power OF silver for all
the necesssries of lifO is nov as great SIS
it was when the debts were contracted.
Commodities have kept pace in value
with silver. Gold alone has been
inflated. 1t is the duty now of the
creditor as we'll as the debtor nations to
take all practical and effective steps 20
bring the value of the two metals to a
parity. 1t is not necessary to force sill
yer up to the gold standard, but in
justice the gold standard ought to be
shorn OF it's artificial value and brought
to q parity with all other values that are
as legitimately standards of measure ss
either metal.
Silver has not been deprecated by
over production. The output of the two
metals from the mines OF the world
shows no such disparity as to cause the
enormous initiation in the price of the
yellow metal which the monometallists
have artifically forced it to. The worlds
stock OF gold and silver shows no such
discrepancy as is recorded in the quota
tions of the markets between their val
ues; and a just disparity ia their values
could only be legitimately brought about
by the scarcity of one metal and the
OF the other.
Let us for moment suppose that the
bonds bad been made out payable in
silver, and then that by artificial means
silver had been deprecated as it has
been, to one-half it's value. Would not
he creditors have just grievance
Would they not excite the sympsthiss
of every honest man by saying. "We /
loaned you one hundred million dollars
in actual dollars, each OF the value OF
100 cents, and now we are compelled to |
settle our credits with the natlons that
got our money lor 80 cents on the dollar.
We have lost one-hali our capital, and
through no fault OF ours" Why should
not Luo ey III pabuy VI every uOuost ma
20 out to the debtor nations that hold
exactly the reverse position on the same
subject?
As to the question OF ability to stand
the loss there can be nc argument. The
man who iends ia always more capable
in that respect than the man who bor-
rows But it is not a question OF loss
1t is question Of lowering one metal
and advancing the other till they both
meet. This cannot be brought about
unless the monometallists are made to
see that it will prove a losing game in
the long run to exact the pound of flesh,
and nothing would bring them 80 soon
to their senses as q series of object les
sons such 90 Guatemala has started and
which all the silver-using countries OF
this continent, if not OF thu world, will
be forced to follow.