The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1895-07-05


pose of settling balances. For ex-
ample:
If. during the month of July Eng
land, or some other European country.
buys American goods valued in dollars
and cents at 100000 During the same
period the United States buys of Eng
land goods valued at 100000. Thus
the accounts balance exactly and no
actual exchange in coin or bullion is
made. But suppose we buy $4,000
worth OF English goods and sell only
S105, 900 worth of American goods. then
we must send to England $4,000 in
coin or bullion to make the balance
good. For thirty years, however. the
balances have all been on our side. We
sell more in Europe than we buy in
Europe, consequently we have been. on
the face Of the trade balances, absorb
ing European gold. A change to the
double standard on the part of this
country would not change the scale
against us. If anything 1t would in.
crease the importations of gold. for
the reason that the double standard
would, as even the gold standard adj
vocates admit have a tendency to re-
strict importations. So with the bal
ance of trade, always in our favor, 1t
is not likely that our gold would leave
u.s."
Probably what is meant by the ex-
preston as used by the money-lend-
ing class is that foreign loans would
at once be recalled in event of free
coinage act. 1t hardly seems probable
that so much good luck would fall to
the lot of this country all at once
free silver coinage and the with
drawal of interest bearing loans.
have not got the exact figures at hand
but 1t is safe to place the foreign cap
ital now drawing interest in this coun-
try at $5.000.000,000. Four years ago it
was more than that, but large amount
has been withdrawn since that time.
| The annual interest on this sum is
enormous. about $500, 00O,000 How do
we pay it?
said above that on the face of the
balance of trade reports our country
always stands on the right side. But
why do we not grow richer as we con-
tinue to absorb European gold? The
truth Of the matter is that while the
balance of trade is always in our favor,
the deficiency is not paid in gold. 1t is
simply charged to the account of inter-
est on foreign loans in the United
States. So we find that the interest
on foreign loans is the real mischief
maker on the scales of international
trade. We are giving away the prod
ucts of American labor to settle the in
terest on European investments in our
own country. And this interest keeps
| growing in volume until at no distant
! day it will annually absorb the price
we should receive for our entire annual
| exports. And yet there are those who
pretend to be afraid these loans will
be withdrawn. The same sort OF a cry
was sent up more than a hundred years
ago when the people of this country
began to discuss the question of throw
Ing off the yoke of England. The or
! iginators OF the cry said that this talk
OF freedom would cause the withdrawal
OF English money. For a long time it
kept the timid in line, but finally it
was drowned by the patriot cry ITO
arms" and the war for independence
| finally stilled it. The English money
| did go and it was replaced with Amer
lean money. The question of the pres
ent bears almost direct relation to that
| decided in the past. When the Euro
pean capital goes, if it does, we will
| TanlapQ
then enter upon an era of prosperity
once again.
Between the single gold standard and
the ideal monetary system there IS a
wide and yawning chasm, perhaps as
wide as a thousand years. Alas for
! humanity, perhaps even ten thousand
| years. The double standard is merely
"A step in the right direction. 1t will
| better serve to balance accounts be-
tween the money-lending class and the
| producers than anything practicable
just now. 1t will injure the money
| lender, because ii creates an addi-
! tional supply of his stock-in-trade, Just
as the opening of the vast Indian
empire to the product on of wheat
price of wheat grown in America.
Onder bimetallism, money becoming
more plentiful, people would borrow
less and rates of interest would de-
cline. The money-lending class would
gradually be forced into the field of
| production and usefulness. II is such
a condition Of affairs (being forced into
a field of usefulness) that the money
lender most strongly objects to- He
hates humanity. would trample upon
liberty and would conslgn the Bible to.
the uttermost limits. He despises the
Word of God on general principles, but
especially because it says: He who
does not work neither shall he eat"
BY the designation of "money-lend-
err" l do not refer to the ordinary
banker, who. as a general rule is all
right at heart. Its the fellow that
controls the banker to whom the title
| belongs