Semi-weekly independent. (Plymouth, Marshall County, Ind.) 1895-1897, 1895-12-18
HOW GOLD STANDARD WORKS

" HE present condition of affairs
constitutes an object lesson that
- ought not 10 be lost on thoughtful
people. We are realizing some of the
results CT eur supreme folly in permit
ting British and foreign interests to
dictate ihe character Of our monetary
system. The situation is more Ominous
than the symptoms that appear on the
surface would indicate. Those surface
symptoms are the continued outflow of
gold and an uneasy feeling in business
circles that the British gold standard
j beading to results thar were nOt anti
cipatcd by those who ignorlntly placed
their influence behind il. Behind this
UneaSine>S in business circles Is 10 he
found an absolute depression of trade
almost equal in extent to that which
followed the fall in silver and the sub
sequcnt unconditional repeal OF the
purchasing clause of the sherman act
in 1899.
Two weeks ago the information came
that various manufacturing industries
We're shutting down for the purpose OF
keeping up prices. That movement
showed the desperate tactics 10 which
our industries are driven TO realize
profits under the British gold standard
During the week just closed the mum
Der Of failures was almost as large as
that of the panic year" 1899. and liza
bilitieS were only a million less.
hnr . j. 70
action from the business depression.
and frankly adds that efforts to cX-
plain it or 10 attribute it to this or that
temporary Influence are wasted" That
is true. lt can he explained only by
the operations of the single gold stand
ard. which constantly enhances the
value of gold a. compared with other
forms Of property and with ali the pro
duets Of human labor. There can be
no prosperity under the single gold
standard in nation that is a heavy
debtor of foreign countries.
Under the monetary standard that is
suited 10 our people We would be able
to pay our foreign debts with the sur
plus Of our staple commodities. such
as wheat, cotton. provisions. etc. but
under the single gold standard the
prices CT our cXpOrtable commodities
are so low that the sum realized for
them falls far short of paying our debts
abroad. and. consequently, our small
and constantly dWindling stock Of gold
must be drawn on.
The speculative squirt in business.
over which the gold monometallists
congratulated themselves two or three
months ago. has entirely expended its
strength. Industries that responded to
it in the vain hope that il meant re-
vival of prosperity lave been COM
PEELED 10 shut down or TO sell their
products at prices that represent only
the most meagcr profits. Over and
over again The Constitution and other
bimetalliStS have assured business men
that there can be no permanent pros
perity in this country under the single
gold standard We have not permitted
this statement to go out either as Il
prediction or as an assumption, but
have shown. with an accuracy that is
mathematical. that the increased de-
mand for gold would make it more val
liable. and that this constantly increas-
ing value would hurt all forms of bust
ness. save that of money lending, and
reduce the prices OF all products Of HUI
man labor below the profit level.
That is precisely what has happened
and is happening. and it is this pro-
cess that dragS both business and spec
ulat ton down when they make an effort
To rise TO the high level of prosperity
that formerly marked the course of
trade and traffic. 1t seems queer in
deed that there are To be found people
who cannot see what is happening be-
fore their eyes. The constitution is
now and always has been the apostle of
optimism. But the most pronounced
Optimist cannot afford TO d;scredit his
sanity by pretending TO believe that the
people can be really prosperous under
the single cold standard. unless, by
means of miracle. the worlds stock OF
gold available for monetary purposes
should be trebled or Quadrupled.
We say that our pcople-especially
the people of the SOuth-are able to sur
vive the operations of the single gold
standard for Il time at least; but we
say. too. that it is both foolish and Grim
inal to compel them TO suffer under a
system that robs them for the benefit of
the money lenders and gold spectators.
The most ordinary intelligence can
perceive the direction in which the
country is drifting under the British
gold standard The tendencies are all
in the direction of bankruptcy. We are
! told when the administration threw the
| doors of the treasury open 10 the shy
| locks of Europe and invited them to
| help themselves that the outflow of
| gold was caused by the issue of treas
! ury notes for the purchase of silver.
| This was stopped. and when gold con
| tinued to go out we were Informed (af-
| ter two bond issueS) that Il syndicate of
foreign bankers had pledged themselves
| to prevent the export of gold. The syn
| dictate did reasonably we'll until it
| pOckctcd its immense profits. and then
1 - l., Il l..