New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1895-05-08


in 1871 has caused n nnnsual demand
Tor gold Is replac the silver. which IA Al
been thrown on The market 81 excess q
the Immediate dem and sof Ia nationsus
ing silver coin The effect has been %
increase the rchasing power of The
gold ollar unit, and decrease the value
of the silver.
Did the action Of the United States il
demonetzing silver contribute to thin
result notwiths ing the very limited
amount Of either metal in the United
States at that date
Certainly The value and The purchas-
ing power Of gold is greatly enhanced 81
the anticipated demand for q vast sum
Of gold by the Emitted States as 4 neces-
|sary condition Of resump ton upon gold
basis in $40.
What would have been the efectif the
European nations and the United States
had demonstrated gold and made silver
the sole standard and measure Of values?
The gold dollar would today be quot
ed at 75c more Or less as measured By
silver, and when the. debtor nations and
individuals demanded the reconciliation
of the old gold dollar, they would have
been answered: You are trying to pay
your debts BY a gold dollar worth oily
s75c. I. 35
What is the effect, as between debtor
and creditor, of the characterization OF
silyer2 81
It is a robbery Of the debtor by the
creditor forcing him to pay Lis indebt-
edness in coin greatly appreciated in
purchasing power, which in effect is
doubling his Indebtedness without an
equivalent.
{ What other causes have concurred to
increase the purchasing power Of The
gold unit2
First. the falling off of the annual pro-
duction of gold, which has been preyi-
ously noted. Secondly, a vastly aug
mented demand for coin, caused by the
increasing traffic Of the world; third, a
greatly increased demand on account Of
payments of interest on the bonded in
debtedness of the nations, and fourthly.
the stock OF gold coin in the world is
now diminishing on account of the In
creasing use of gold in the arts and the
loss and abrasion of coin. The loss OF
the stock of gold coin Of the world ex
ceeded $40, 900, 900 in 1874, as the annu.
al production was but $S7 100000 anG
the consumption and loss exceeded $110
100000. .. =
How is the increase IN the PURCHASING
power of gold indicated2 III I.
BY a decline in the price of commodi
ties.
Is there any possibility Of arrestine
this decline in the price of commodities
while the supply Of the worlds coin il
decreasing and the demand is increasing
No. It is an inevitable result Of .
diminishing volume Of coin or othercur
rency, that the purchasing power of thu
unit of coin increases, which is indicated
by constant sbrinkage Of prices ofccm
modities.
What is the result Of a continued fall
in commodities?
Bankruptcy and reputation Of all The
private and public Indebtedness. Th,
first symptoms are suspensions of exist
ing manufacturing enterprises, a with
drawal of capital from all new enterpri
ses, the vast army of workers are thrown
out Of employment, and are no longer il
a position to purchase the products Of
the industries of others. Then comes
the cry Of "over production" which
means .'under consumption One after
another industry perishes. The hordes
Of the unemployed live upon the accumu.
lataons of past years. Men become bank
rupts in wealth and character. Poverty
Et.tf 5i - Ii (
stalks through the country IN rags, and
the whole drift and tendency is toward
naked barbarism. ass
8 What financial conditions are best
designed to promote the general wealth
OF nations and Individuals
b Such an equipose in. the supply of,and
demand for coin Tor the currency a
shall not permit Of any sudden Or long
continued disturbance in existing prices
of commod ities.
What results when there is an increase
Of coin beyond the existing demand
A general rise in the price of commo-
dities. a5,s &
What effect does this have upon the
industries Of the world. and how is an
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