The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-02-02
WHAT JOHN THINKS
ENGLISH VIEW OF AMERICAN Fl
NAACIAL AFFAIRS

Cleveland's Message Wlse and statesman
uke--He Shouldn't Borrow Much In
Europe Lest He be Enable to Pay--whss
Would Result From the silver standard
Being AdoPssd-wos,d be . Good Thing
for the soath and West But Mighty had
for the Eastern States and Ensl.nd--
Gold Clause In Future Contracts.
London, Feb. 1.-The Stats will say
tomorrow: President Cleveland's mes
sage appears to be wise and statesman
like. AS the law stands It Is quite clear
that a large sum should not be borrow
ed in Europe, as there Is doubt re-
specting the presidents ability to con-
tract to pay gold. This would be fatal
to any projected loan. Money can al
ways be had at price: but the govern
ment Of the United States cannot act
as II 1t were bankrupt Its credit
would stand as high as that OF any
country in the world II congress would
only do its duty. If the present con-
gress does not act II Is greatly feared
that II will be too late to appeal TO the
new congress. as before II can be CALI
ed together a crisis will probably have
occurred 1t Is questionable whether
under the existing conditions the pres
tdent can even borrow at home. The
banks. In order TO avert a panic, may
furnish him with gold. but even then il
Is questionable whether, when a doubt
exists respecting payment in gold,
enough gold can be got In any case
mere borrowing will not avail. as I.
experience OF the past year has SHOWN
that sooner or later there must be q
contraction OF the currency
The Statist proceeds to discuss the
consequences in the event, firstly Of gold
being demonetized, secondly. on legis-
lation whatever being arrived at;
thirdly. the effect OF the free coinage OF
silver. Then the Statist remarks: III
gold is demonetized. it is perfectly clear
that there will be a great transfer OF pro
perty from the capitalist and lending
classes to the producing and borrowing
classes. This would be OF immense adj
vantage to the west and south and
would prove serious loss TO the east
ern 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 un-
doubtedly rise. but it would be long be-
fore II reached co pence The great re-
duction of debts all over the United
States by a fall of silver would give the
farming and producing classes gen.
orally a sense of freedom and prospert-
ty which they have not had for many
years and would probably give a great
stimulus to production IL silver did
not rise much for a while. American
wheat, cotton. pork. etc, would COM
pete with the products of other countrie
at a very graf advantage and there
would probably be a very rapid and
great growth OF exports and the begin
ming OF an era OF prosperity.
''On the other hand. the lending and
creditor classes would suffer and their
losses would not affect production to
anything like the same extent as the
gains OF the debtors and producers
would do. Further. there would be a
very serious fall in securities which
would inJure capitalists and lenders
both in the United States and Europe.
'If congress refuses legislation then
gold would go to a premium: but prob
ably not high. The tendecy would still
be to benefit debtors and producers and
would injure capitalists and lenders
while production and exports would be
stimulated, though not to great ex-
tent.
Thirdly, II the minis were opened
for a free coinage which would tend to
make Ine kOl0 bi6hti Stlii.
the premium would not be very high
and the reduction OF the debt and the
losses of capitalists would be small
compared to the demonetizat on OF
gold
Summing up this review of the fnan-
cial possibilities the Stats 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 tend
ency to transfer property by wholesale
from the east and Europe TO the west
and south. In fact IL would be form
of reputation and IL would lower the
credit of the United States and prevent
the free influx OF European capital
In future, probably. European capt.
talists will always insist upon the gold
clause-they will require a clear con-
tract that they will be repaid In gold.
in the event of gold decentralization
matters will right themselves in the
long run. but the run might be very
long, and another point Is that a great
transfer OF property would not act uni
formly. Debts falling due soon after
the change would be immensely reduc-
ed, whereas, debts falling due later.
when silver had risen, would be less re-
duced and IL silver reached 50 pence
there would be no reduction OF debts
whatever"
Official tests at the worlds fair prov
ed DR.. Prices Baking Powder absolute