The Delta independent., 1895-05-08
TELLER TO THE FORE
ANSWERS CLEVELAND'S LET.
TER AND MAKES PRE-
DlCTlONS,
China and Japan Likely to DO tho Worlds
Manufacturing II Other Countr rles Con-
tinue the Gold Standar.l-The Plight
of the English Manufs cturer.

Senator Teller. in a column article
printed in the Chicago Record of Thurs
day. states his belief that China and
Japan will manufacture the worlds
goods, If the single gold standard pre-
walls elsewhere. He says, among other
things:
"The presidents recent letter to Chi
cagO was an appeal to the supporters
of the gold standard to defend the sys-
tenn by proclaiming for it the merit Of
S0undneSs, and to declare all other sys-
TENS unsound, and the supporters of all
other advocates of q ucbased currcncT.
In his opinion. l suppose we are adyo-
Gates of an unsound currency. 1t is 10
be regretted that the president did not
point out to us some of the advantages
of the gold standard, us well as the pos
siblc dangers to the country IL we re-
turn to the use of both gold and silver
as such use existed in the United States
prior to 1873
Read history and tell me where
there Is anything to justify the presi-
dent in supposing that Il return to the
conditions of finance existing prior to
1913 would be fraught with disaster.
Inc countries that have abandoned the
use or silver have not benefited their
financial condition. and the financial
condition Of the world to-day is much
less satisfactory than 1t was for many
years preceding 1873. Exchange has
huctuated to greater degree since
that year between silvcr-using and
gold-using countries, and now seriously
threatens to transfer the manufactures
or Europe and America to Asiatic coun-
tries.
81 will state this as a proposition: If
the gold price of silver falls in the gold
standard countries, the price of exports
from gold-standard countries must eth
er fall In the country where produced
or rise In the country to which the ex-
ports are sent Silver-using countries
must pay more for silver for imports
from gold-using countries or the manu-
1acturers In gold-using countries
must reduce the selling price of their
wares to meet the decline in the relative
value of silver and gold. That Is the
situation presented the manufacturers
today. Prior to 1873 fifteen and one
half ounces of silver were equivalent
to one ounce of gold. Then the Eng
lish exporter to Asia received that
amount Of silver. knowing that he
could certainly convert 1t into gold with
out loss upon the stable ratio. 1t did
not change by daily market fiuctua-
tions.
Now, mark the change. To-day, ac-
cording to the present price of silver,
1t takes something like thirty-one
ounces of silver to secure by exchange
an ounce of gold, instead of fifteen and
one-half ounces. as was the case before
1873. If the exporter should attempt
to maintain his old price after silver
was demonetized, he must require of
the silver-using purchaser more than
the amount of silver heretofore paid
for his product, subject to the tiuctua-
tions of silver based upon n gold meas
ure, which Is now, us you know, re-
duced to one-half its former value.
What is the result? The silver buyer
OF the Englishman's wares must either
refuse to buy or. must pay the in
creased silver price of must manufac-
ture for himself in his own country,
What did he do? BY refusal to buy
he forced the Englishman to reduce his
price. The importer continues to buy
with his silver, but to the disaster Of
the English manufacturer, who cannot
make profit at such reduced rates
1T looks now as If Japan might be-
come the great manufacturing country
Of the Orient If not of the world Its
population is quite as skillfnl in manu-
featuring as that Of England. Japan
has the advantage of n better climate,
of cheaper labor, of an abundance of
cheap iron and coal; her products can
be sold in China and India. on silver
basis with profit. and even in Europe
on gold basis at n figure less than any
European country can manufacture
them.
ut must be borne in mind that labor
has not fallen in India, China Japan
and other silver standard countries, and
that one ounce of silver bullion will
buy as much labor now as it ever did.
This is true also of all the domestic
supplies and materials required for
manufacturing in silver countries. 1t
Is also true of taxes and general
charges that must be met by all manu-
facturcrs alike. In Europe, however.
and i'll America, one ounce of silver
bullion will buy only half as much la
Dor or supplies and will discharge only
one-half as much taxes and general
charges. Under these conditions 1t Is
impossible for any European of Ameri-
can manufacturer to compete with
manufacturers in the countries / have
named. If we persist in giving the sill
yer-using countries of the world the
advantage which they now possess by
reason Of cheap silver we will find that
in a few years the manufacturing
Of the world will be in the hands of the
Asiatics, and they will export to gold
standard countries their products, and
sell at prices quite impossible for the
gold-standard manufacturers to meet"