Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1895-12-06

made the standard, and its value rising
under the increased demand. other
values which were measured in golC
fell III exact proportion. Other ma
tions followed the example of the
United States and Germany, gold ris
ing higher and higher with the ever
increasing demand, and prices falling
lower and lower as gold went up.
In 1878 the Bland-Allison act wa.
passed, under which 100000 silver
dollars were coined each month. For
a time the fall in prices was checked
but other elements OF currency con.
traction were at work and the decline
soon began again. In 1890 the Sher-
man law" was passed, by which some
thing over $l,O0o,00O was added tc
! the currency each month, and again
came a slight advance of prices. But
financial troubles were abroad. The
great house OF Barring had just failed
the Bank OF England was in imminent
danger, and nearly every monetary
| center OF Europe WAS struggling for
gold. As before stated, the United
States was the greatest debtor nation
in the world. 1t also had a larger
stock Of gold than any other except
France. England, in her distress, un-
loaded great blocks OF American secur-
tiles and took away from $75,OO0O0O
to 500, ,00O, 900 of our gold. Thus the
storms from other countries converged
upon us, and we were compelled TO
withstand their combined shock. Wall
street was in distress, and was appeal
ing to the United States treasury for
help.
Such was the monetary stringency
for a time that great money cen.
ter nearly forgot its opposition to sill
yer.
The first issues OF treasury notes un.
der the " Sherman law" were welcomed
| almost as mama from Heaven, and
| there can scarcely be doubt that the
passage OF that act averted crash in
this country shortly after the Barring
failure in 1890. But untOward bust
ness conditions in Europe deprived u:
| of the positive advantages that would
have naturally accrued from the
SHERMAN law" and its benefits were
negative rather than positive. That
| is, the issue of notes under it checked
the downward movement of prices, in
II measure neutralized the effects o.
the exports of gold, and postponed the
panic about two years.
Early in 1898, however, the Englisl
government by All order OF counci
closed the East Indian mint to thu
coinage of silver, and about the same
time Austria began to borrow gold fol
the purpose of placing herself upor
the gold standard. Up went gold ant
down went prices again, and all o
these things operating in the same di
rec,ion made the panic of 1898 one o
unparalleled severity.
1t is almost impossible to resist til,
conclusion that it was the natural cul
mination of the legislation 10y whicl
silver was virtually destroyed as
measure Of value Fears OF suddel
tariff changes, over-trading and specu
lation, and various other things ma
have contributed to increase it's via
lence; but the general financial dis
turbance, beginning with the BARN
failure, sweeping over Europe, Sout
America and Australia, finally invOl,
ing the United States, was the matt
raj and inevitable outcome OF tina
baneful, blighting, deadly fall {
prices" which, beginning in 1873, ha
continued with only temporary check
down to 1898. This fall of prices i
turn resulted as naturally from th
demonstration of silver as crop TAI
ure results from a drouth. None
was made scarcer and consequent
= dearer. Wheat, cotton, lands-almo'
every species OF property becan
, cheaper because OF the scarcity I
money, the medium by which the
: were valued.
/, Money owners, and holder of fixe
incomes, were made richer while Il
great mass OF debtors and produce
y were made poorer.
q The acute stage of the panic OF Is!
= has passed by, but there can be no r
turn of permanent and substanti
q prosperity until the monetary syste
: OF the country is once more plant'
, upon a firm and honest basis by u
. complete restoration OF silver as one
q the great money metals OF the world
- AS an emergency medicine, Aye
| t,lr l1a nj /,