The state herald., 1895-05-10
TELLER TO THE FORE
ANSWERS cLEvELAND's LETT
TER AND MAKES PRE-
DICTlONS,
Chins and Japan Likely to Do tho Worlds
Manufacturing II Other Countries Con-
tinuo the Gold standard-The Plight
Of the English Manufacturer.

Senator Teller. in column article
printed In the Chicago Record of Thurs.
day, states his belief that China and
Japan will manufacture the worlds
goods, IL the single gold standard pre-
walls elsewhere. He says. among other
things:
1.-THE presidents recent letter to Chi
cago was an appeal to the supporters
or the gold standard to defend the sys-
TEN by proclaiming for 1t the merit OF
soundness, and to declare all other sys.
tens unsound, and the supporters Of all
other advocates Of n debased currency.
In his opinion, suppose we are advO-
Gates or an unsound currency. 1t Is to
be regretted that the president did not
point out to lis some of the advantages
or the gold standard, us well rs the pos
sible dangers to the country IL we re-
turn to the use of both gold and silver
MS such use existed In thesUnlted States
prior to 1873.
Read history md tell me where
there Is anything to Justify the presl
dent In surprising that return to the
conditions Of finance existing prior to
1873 would be fraught with disaster
The countries that have abandoned the
use OF silver have not benefited their
financial condition, and the financial
condition Of the world today Is myGi
less satisfactory than It was for maS
years preceding 1873. Exchange lias
iuctuated to greater degree since
that year between silver-using and
gold-using countries, and now seriously
threatens to transfer the manufactures
or Europe and America to Asiatic coun
tries.
Il Will state this rs n proposition: II
the gold price of silver falls In the gold
standard countries, the price OF exports
from goldstandard countries must eth
or fall In the country where produced
or rise In the country to which the ex
ports are sent. Silver-using countries
must pay more for silver for imports
from gold-uslng countries or the manu-
facturers In gold-using countries
must reduce the selling price of thell
wares TO meet the decline In the rclativ,
value OF silver and gold. That Is til,
situation presented the manufactures
today. Prior TO 1873 fifteen and one
half ounces Of silver were cQuivalen
to one ounce of gold. Then the Eng
iish exporter TO Asia received thai
amount OF silver. knowing that h,
could certainly convert It into gold with
out loss upon the stable ratio. 1t did
not change by daily market fiuctua
tions.
Now. mark the change. To-day, nc
cording to the present price of silver
it takes something like thirty-ont
ounces OF silver TO secure by exchang,
an ounce OF gold, instead of fifteen and
one-half ounces, MS was the case befor,
1873. III the exporter should attempt
to maintain his old price after silver
was demonctized, he must require OF
the silvcr-using purchaser more thar
tho amount OF silver heretofore paiL
for his product, subject TO the tiuctua
tons OF silver based upon gold meas
ure. which is now, ms YOU know. re
duced to onc-half Its former value
What Is the result? The silver buyn,
OF the Engllshman's wares must cithc,
refuse to buy or, must pay the ~
creased silver price Of must manufac
ture for himself In his own country
What did he do? by refusal to hn,
he forced the Englishman TO reduce hi,
price. The importer continues TO buy
with his silver, but TO the disaster oil
make a profit mt such reduced rates.
at looks now as II Japan might be
come the great manufacturing country
of the Orient. II not Of the world. II.
population Is quite ns skillfnl In mann
featuring as that OF England. Japan
has the advantage OF better climate
OF cheaper labor. of an abundance OF
cheap Iron and coal; her products car
be sold In China and India, on silyc,
basis with profit. and even IN lgurobt
on a gold basis at figure less than any
European country can manufacture
them.
at must he borne In mind that labo,
has not fallen In India. China, Japau
and other silver standard countries, and
that one ounce of silver bullion will
buy rs much labor now MS II ever did
This is true also OF all the domestic
supplies ana materials required fol-
manufacturing In silver countries. II
Is also true OF taxes aud general
charges that must be met by all mann
facturcrs alike. In Europe, however
and In America, one ounce OF silver
bullion Will buy only half ms much IN.
Dor or supplies and will discharge only
one-half as much taxes and general
charges. Under these conditions II l.
impossible for any European of Amcrl.
can manufacturer 10 compete with
manufacturers In the countries I hnve
named. If we persist In giving the sii.
vcr-uslng countries OF the world Tho
advantage which they now possess by
reason Of cheap silver we viii find tina,
In n few years the manufacturing
Of the world win b. In the hands Of I'M
Asiatics. and they will export to gold.
standard countries their products, and
sell nt prices quite impossible for the