The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-07-25
SEATTLE, THURSDAY, JULY e5.
UNSTABLE CURRENCY.

A very interesting contribution TO litera-
.ure upon currency has recently been
made by Consul General Townes at Rio
Janelro upon conditions In Brazil. 1t does
not directly. Il IL true. deal with the silver
question, but II gives one more illustra-
ton of the Inevitable results OF an un-
stable money system. our own experience
with paper money during the war and for
a few years afterwa-d ought to be lesson
enough fo- orc country In a century. but
Il seems ID be forgotten already. The
ver-ence OF value, dealers In money al
ways make big profits. and the wage
earners get the worst OF 1t.
Consul Townes says that buying and
selling money Is the most important busi-
ness In Brazil. The three English banks
and one GermaD hank have made vast
sums n this way. The two leading banks.
with capital amounting to Sc 10. 900. have
added S, 100000 10 their surplus account.
and for the past two years have earned
about q per cent. annually. This would
seem TO Indicate that a cheap and fiuctu-
ating currency constitutes the paradise CT
the money changers. What Mr.. Townes
SAYS is in strict accord with the expert
@nce OF this country in the DAYS OF de-
precIated greenbacks and the New York
god hoard
We pointed out few days ago that
while deprecated currency In Colombia
enabled debtors to pay in cheap money.
the iaboring element were the chief SUI
fetera. because they we're the principal
although the most helpless creditors. The
same Ia true in Brazil
AIR Townes admits that debtors have
Teen able in many eases TO get the better
~ their creditors by paying them In a
currency worth only SO Is cents OF It's
face value. But he continues:
''But let ia not presume for a moment
that the poor lahoring classes have been
benefited. On the contrary they have suf-
ferea. and beyond the creditor classes. as
they have feIs the effects IN pers,aai SUI
fsrsag. while the creditor classes nave felt
them only in pocket. 7 am we'll advised
as 20 the conditions of the poor in both
Tfaxn aud Argentina. anf | am positive
from the light Of facts before me. that IN
neither OF these great countries. one OF
which Is greater In AREA than the United
States. has skilled nor raw labor been nala
tn late years commensurate with the de-
probation IN the currency IN which they
have received their wages.
"Au costs Of living have been advancing
ga fe@Np
Of having been paid win, a greatly depre-
ciatetl currency. at rate OF wages iu1rna-
terislsy Increased. and having TO pay IN
creased prices for commodities consumed.
all labor has experienced the greatest
suffering, and no outlook for its relief Is
apparent. Amy currency 50 foun fed as 20
Re liable 70 fluctuations IN value adds an.
otae- element ~ uncertainty 70 business.
AM IL becomes the greatest disturbing
element in commerce. II becomes an
article ~ ,rat1lc. - ~ bought and sold.
both public and private, and there -.
mains no 1xed measure on any article O.,
coaamere.. A. least such IS he expert.
vnce - thts country
Merchants protect themselves hv sen,n,
the.r goods =. a price calculated - : a
aish enough 10 cover all likely changes IN
money value.
The effeet 81 lhs uucerta nifty g creditors
recovering the amoart due th~n,. checks
Investments Of capital and re,artlz ire s.
velormeat ~ the country. whieA mean.
taat resources upon which labor ought {.
n employed Ia untouched.