Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1895-04-04


In the Foreign Exchanges however,
there is a real and positive connection
between the volume of commerce and
the requirements for metallic money.
A gain in the imports or exports in
wolves an increase in the international
balances, which have to be large
| ly settled through the transmission OF
coin or bullion. And further an in.
crease in the circulation of the metals
requires an augmentation Of metallic
reserves in the reservoirs from which
this circulation is drawn and to which
it returns. But investigation VIII
show that the ratio Of increase in the
worlds commerce has been far lighter,
within the last twenty years,
than the ratio of increase ia the
supply Of the precious metals. AS
above shown, the increase in the
prodact Of the precious metals, be-
tween 1873 and 1893, was lO5 per
cent. The combined imports of the
| six great commercial nations the
United States, the United Kingdom,
France, Germany, Russia, and Austria
Hungary, have risen, within the same
period, from W, 1884 900, 900 to $685.
100000, or At Il rate Of only 81 per
cent; showing that the growth III the
production Of precious metals has
been in tWclyc,fold the ratio of the in
crease in international trade.
In view Of this comparison be
tween the course of the actual supply
Of the precious metals and the course
Of the Legitimate requirements for an
increase Of metallic money, we must
claim, sir, that the product Of gold
and silver during the last twenty years
has amounted To large and positive
imitation OF the worlds stock OF
money; one effect Of which IS
apparent in the existing unparalleled
superaDlIndance of idle gold IN the
banks Of Europe and III the eXcep-
tionaIIy low rates of interest.
CD You remind your readers that
Gas nations are adopting lho gold
standard the strain on gold in
crcaSes" The only notable eases Of
nations putting themselves more com
plctcly On the gold basis, within the
last twenty years, are those OF
Germany and Austria hungary; with
IN the Same two decades, the worlds
production Of gold has amounted tot
$4,000 1900. VIII you say whether
the absorption Of gold by thcHe two
governments has exceeded per cent
TINS new supply.
(j) You affirm, that the output o.
gold is inadequate is demonstrated by
the constant lall in prices" We sub
mt that this is n pure case Of petltlo
prlncipii, II begging Of the whole
question:; that your assumption IS
based purely on II theory which, IN
experience, has been found to pre-
ponderantly run counter to facts; and
that the fail i'll prices is amply
accounted for by the tact that the in
PRODUCTION Of new appliances of
steam and machinery las, in the first
place, immensely reduced the pro
ducIion and in the next place, created
cess of the worlds ability to consume.
win you say for what reasons you
prefer your deduction based solely on
theory to ours based upon acknowl- !
edged facts Of experience which
would ordinarily be accepted rs
sufficient of themselves to account for
the phenomenon?
CO Referring to the home con
sumption Of gold in the arts and
manufactures, you write, -"thc use
of gold in the arts has of late greatly
increased, the most conservative eSti-
mate placing 1t at Is per cent of the
annual output from the Mines The
annual output of gold by American
mines in 1893 is estimated by the
Director of tho Mint, AT $360O0,00O. |
Taking what you consider 1.-the most
conservative estimate" namely Is per
cent, it would follow that the in
dustrial consumption Of that metal in
1873 was $27,OUO,0OO; and we may
assume that what you would consider
the least conservative estimate might
regard approximately the whole pro
ductlon us having gone Into these
noh' holetHTy USES Inc l'HcCtoi vi
the Mint, after using every possible
method of inquiry calculated to elicit
facts, reports the consumption for
these uses, exclusive of the remelting
of old gold, as $lO,65S,OOo, or less
than 30 per cent Of the supply of
1898. In thus estimating this form of
consumption AT nearly three times the
quantity allowed by those in official
contact with tho best sources of
information, we would suggest, Sir,
that you are bound, in all fairness to
your readers and in all reasoning, IT,
state explicitly your warrant for thu
rejecting the otherwise undisput,A
reports of the Government.
G. You say that the countries of
Western Europe have, since 1873,
"dlScarded silver as standard
money; and you also speak of silver
ns having been demonetized."
1t is true that, rs above stated, Ger