The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-03-03
FOR FINANCIAL PEACE.
A Comprehensive Statement of
Causes and Results.
Why We Have an Era of Falling
Prices.
INTERVIEW WITH i. MARSHALL.
FnEEGE.
The One Grcat Demand of the Rusi-
ness World now is Financial
Peace,

80 bdl DCAuIuu BuS1-
ness World now is Financial
Pence,
The accurate and comprehensive
knowledge of finance. evinced by the
opinions expressed by MI. I. N. Freese,
OF the firm Of Haisht 81 t7reeSe. bank
ers and brokers, No. SO Broadway, New
York. in the New York Commercial
Advertiser indicates clearly one Of the
main factors OF the great hnancial
prosperity Of the firm
The opinions Of theorists IN finance.
can have but little weight without The
sanction Of such practical, experienced
and successful men as Mr., !, NJ, Freese.
lie is certainly to be congratulated
on having so firm q grasp on, and so
! 1uH comprehension of all the elements
g4 nat enter into the present complex
NSinancial situation. and he is entitled to
the THINKS OF the public az well as our
Own for his lucid and logical exposi-
lion OK The question.
MI treese saysi-'-It has been uufor-
-tundte for the commercial industrial
and agricultural interests of the United
states, and of the world, that they
nave been compelled for a period Of
uhlIty years to conduct their affairs
Whlle q herce struggle has been going
on TO change the money standard Of
JLe world For twenty-five years this
financial War has been Waged in the
JHlled states. The victory has been
tirst on one side and then on the other,
J put with uncertainty prevailing during
3 an this period as TO what would be the
final result.
The direct parties to this contest are
money owners on one side, and all
kinds of property holders On the other
Money is the measure OF values The
volume of the worlds money, controls
the price OF the worlds property. To
increase the worlds money, every one
knopzS, is to increase the prices Of all
KINDS Of property. This is called lin
nation" To reauce the worlds money
rs 10 reduce -tne prices OF all Kinds of
ehe worlds property. This is called
contraction"
NftS Cent Wheat.
European money owners, thirty years
ago, met in conference, and decided
that IT Was TO their interest to reduce
7 the volume OF the worlds money. The
quantity OF gold in the world W2g prac-
tleaAy equal to the quantity Of silver;
ana IL was matter OF serious discus
sion whether they should destroy gold
or silver money. AZ that time,
avD cents in silver in the United States,
would purchase 109 cents of gold. The
conference finally decided that it would
destroy silver as a money metal.
The amount of the worlds silver and
gold ar that time, in round numbers,
was seven thousand million dollars,
thirty-f1Ve hundred millions of gold
and thirty-hve hundred millions Of sill
N n rrf1r
money metal would, at one blow, de-
Stroy one-half the price of all other
forms OF the worlds property. the
wages OF labor and the products of ag-
Ticulture. All those people or nations
who were in debt would have their
debts doubled in effect, and all money
lenders would have the value Of their
incomes doubled On the other hand,
She farmer. in order TO buy his tax re-
ceipts, must now give two bushels of
wheat to the dollar of taxes, ct fifty
cents a bushel when formerly Re gave
one DUShel TO the dollar Of tax vqhen
wheat was selling at 81 bu5hel.
As the plans of European capitalists
were accomplished in one country after
another, prices of the worlds property
began 10 fail as had been expected
One debtor country after another be
came bankrupt, like Argentina, Austria
Ia, Egypt, Turkey, Greece, Spain.
LAdIS, bNdZl1, anu SuhAGE9Q AEOIA ESAlCS,
trade depression and commercial dis
tress, as seen in the United States and
throughout the world.
The great obstacle to the accomplish
znent OF the plans TO demonetize silver,
was encountered here in the United
States: and ii Was not until November,
1895. that the resistance was finally
oyerconae, by the passage of the bin to
EeGeal the silver purchase act.
Ff+he country has now had over a year
IN which TO feel the effects Of the fur
Their decline in properly and produce,
and the liquidation naturally resulting
from this repeal; and. with prices now
the reduced volume of the worlds
money, the probabilities are that we
3 have reached near to bottom. ana have
established neN basis upon which
business may safely be transacted. The
diff1cultieS which the change Of money
standard, and tariff revision, have
caused the government treasury. may
scr brief time compIiea1e and pro-
long. for this country, the conditions
resulting from the great financial rev.
olutiou which mas taken place through
out the world. but as the patriotism
And resources Of the republic are
practically unlimited, and have ever
proved superior TO all emergencies, the
embarrassment of the treasury DEPART
ment at Washington can be but tempo
rary at the most
The great fight for the destruction Of
silver, as money, and The consequent
reduction OF the worlds volume of
money, IS at an end in the important
commercial nations. The struggle
hereafter, if any, viii be to remone-
tize silver Corresponding prices for
property. products. securities, stocks OF
goods, and wages FOR labor, are rapid
~ being established on the new gold
basis, and VIII now again BECOME sub
sect to the fluctuations Of the ordinary
laws of trade; namely, accreti9n from
natural growth, depreciation from the
introduction Of new processes, and to
that great controller of prices, on fixed
monetary conditions. supply and de-
4hand.
Uncovered Paper Money Outstanding
9ifhere is "a possibility of danger
ahead ia an attempt TO destroy the
worlds outstanding. uncovered paper
money, amounting now. IN round num-
bers, to twenty-five hundred million
dollars. But, in every country, except
ing the United States Qncluding the
United States 10 the extent OF two hun
dred million national bank notes., this
paDer money is. profitable TO private in
dividuals, corporations OF ruling houses
who are separated from. and hostile
10. the masses of the people on this
question, and il is probable that no at
TEMPT will be made during the remain
De-. of the century at least, TO reduce
fReFolunle Of this kind Of money. 1t
q individually profitable to let it stand,
or even TO increase it. TO those who is
she st. and the resistance to its de-
structlon would be too powerful to
overcome; and 1t would divide the
T-.-an- AZ fl7ocn uvh0 h9Va COUOlt fla