The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-02-02
A FOREIGN VIEW.
LONDON STATS SUMS UP THE STU
ALTON.
Consequences That Would BE the Re-
suit of Several Methods of Deal
ing With the subject-The West
and South,

London, Feb. 1.-The Stats will say
tomorrow:
President CleYeland's message ap-
pears to he wise and statesmanlike.
AS the law stands. 1T is quite clear that
a large sum could not be borrowed
! IN Europe, as there is doubt respect
| ing the presidents ability to contract
to pay gold. This would be- fatal to
any projected loan. Money can all
ways be had at a price, but the gov
eminent of the United States cannot
act as if it was bankrupt. Its,-credft
would stand as high as that of any
country in the world if Congress
would only do it's duty. If the pres
ent Congress does not act it is greatly
feared that it will be to9l tats to APP
peal to the new Congress, as before it
can be called together a crisis will prob
ably have occurred. 1t is questionable
whether under existing conditions the
president can even borrow at home.
The banks, in order to avert a panic,
may furnish him with gold, but, even
then, it is questionable whether, when
G. doubt exists respecting Payment in
gold, enough gold can be got. In any
Case mere borrowing will not avail, as
the experience Of the past year has
shown that sooner or later there must
be a contraction of the currency or
there will be a panic.
The Stats proceeds to discuss the
consequences in the event, firstly, of
gold being demoTletiZed; secondly, no
legislation whatever being arrived at;
thirdly, the effect of free coinage of
silver. Then the Stats remarks:
"If gold is demonetized, it is perfectly
clear that there will be a great trans
fer of property from the capitalist and
lending classes to the producing and
borrowing classes This would be of
south, and would prove a serious loss
to the eastern states and to Europe.
"Of course, a great country like the
United States adopting a silver stand
ard would have great influence on the
whole Of the world and silver would
undoubtedly rise, but it would be long
before it reached 60 pence. The great
reduction of debts all over the United
States by a fall to silver would give
the farming and producing classes gem
orally a sense of freedom and prosper
years, and probably give a great slim
illus to production. If silver did not
rise much for a while, American wheat,
cotton, pork, etc., would compete with
the product of other countries at a
very great advantage and there would
be rapid and great growth of exports
and the beginning Of an era Of great
prosperity.
'On the other hand. the lending and
creditor classes would suffer and their
losses would not affect product n to
anything like the same extent rs TIE
gains of the debtors and producers
would do. Further, there would be a
very serious fall in securities which
would injure capitalists both in the
United States and Europe.
IF Congress refuses legislation, then
gold would go to a premium, but
probably not high. The tendency
would still be to benefit debtors and
producers and would injure capital
lists and lenders. while production and
exports would be stimulated though
not to a great extent.
Thirdly, if the mints were opened
for free coinage, which would tend to
make the gold premium higher still.
the premium would not be very high
and the reduction of the debt and the
losses Of capitalists would be small
compared with the decentralization of
gold"
Summing up this review of the finan-
clad possibilities, the Statis represents
the west and south as being perfectly
right in the view that a change of the
present system would benefit their sec
tons of the union. The effect of the
change they advocate would be "a ten
dency to transfer property by wholesale
from the east and Europe to the west
and south. In fact it would be a, form
of Reputation and it would lower tine
credit of the United States and prevent
the free influx of European capital In
future, probably, European capitalists
will always insist upon the gold Clause
they will require "a clear contract that
they VIII be repaid in gold.
In the event of gold demonstration
matters will right themselves in the
long run, but the ruin might be very
long, and another point is that a great
transfer of property would not act uni
formly. Debts failing due soon after
the change would be immensely re-
duced, whereas debts falling due later.
when silver has risen, would be less re-
duced and if silver reached 60 spencs
there would be no reduction of debts
whatever.