Cherry County independent. (Valentine, Cherry Co., Neb.) 18??-1896, 1895-12-19
HOW GOLD STANDARD WORKS

Constitutes an OBJECT lesson iudI
ought not to be lost on thoughtful
people. We are realizing some of the
results Of our supreme folly in permit
ting British and foreign interests to
dictate the character Of our monetary
system. The situation Is more ominouS
THAI the symptoms that appear on the
surface would indicate. Those surface
symptoms are the continued outflow Of
gold and an uneasy feeling in business
circles that the British gold standard
cipated by those who ignorantly placed
their influence behind it. Behind this
uneasineSS in business circles is to be
found an absolute depression of trade
almost equal in extent to that which
followed the fall in silver and the sub
sequent unconditional repeal Of the
purchasing clause of the Sherman act
in 1893.
Two weeks ago the Information came
that various manufacturing Industries
were shutting down for the purpose OF
keeping UP prices. That movement
showed the desperate tactics to which
our industries are driven to realize
profits under the British gold standard.
During the week just closed the num-
Der of failures was almost as large as
that of the panic year." 1893, and la
bilities were only a million less.
Dun'S report says that there is no re-
action from the business depression,
and frankly adds that efforts to ex-
plain it or to attribute it to this or that
temporary influence are wasted" That
is true. 1t can be explained only by
the operations of the single gold stand
ard, which constantly enhances the
value Of gold as compared with other
forms of property and with all the pro-
ducts OF human labor. There can be
no prosperity under the single gold
standard in a nation that is a heavy
debtor Of foreign countries.
Under the monetary standard that is
suited to Il people we would be able
to pay our foreign debts with the sur
plus of our staple commodities, such
as wheat, cotton, provisions, etc, but
-oi'Si liz NhSIt Sclu 'laLitoio IN
prices of Jul eXportable commodities
are SO low that the sum realized for
them falls far short of paying u debts
abroad, and, consequently, our small
and constantly .dwindling stock of gold
must be drawn on.
The speculative squirt in business,
over which the gold m0nometalliSts
congratulated themselves two or three
months ago, has entirely expended its
strength. Industries that responded to
1T in the vain hope that it meant a re-
,vival of prosperity have been COM
PEELED to shut down or to sell their
products at prices that represent only
the most meager profits. Over and
yer again The Constitution and other
bimetaliStS have assured business men
that there can be no permanent pros
perity In this country under the single
gold standard. We have not permitted
this statement to go out either as a
prediction or as an assumption, but
have shown, with an accuracy that is
mathematical, that the increased de-
mand for gold would make it more val
liable, and that this constantly increas-
ing value would hurt all forms of bust
ness, save that of money lending, and
reduce the prices of all products of hu-
man labor below the profit level.
That is precisely what has happened
and is happening, and it is this pro-
cess that drags both business and spec
I Lotto down rshAp tlnr VAC 10 ~ n ofco,s+
to rise to the high level of prosperity
that formerly marked the course of
trade and traffic. 1t seems queer in
deed that there are to be found people
who cannot see what is happening be-
fore their eyes. The Constitution is
o and always has been the apostle of
optimism. But the most pronounced
optimiSt cannot afford to discredit his
sanity by pretending to believe that the
people car be really prosperous under
the single gold standard. unless, by
al of a miracle, the worlds stock of
gold available for monetary purposes
should be trebled or Quadrupled.
We say that our people-especiany
the people of the South-are able to SUI
vive the operations of the single gold
standard for L time at least; but we
say, too, that it is both foolish and Grim
inal 10 compel them to suffer under a
system that robs them for the benefit of
the money lenders and gold spectators.
The most ordinary intelligence can
perceive the direction in which the
country is drifting under the British
gold standard. The tendencies are all
In the direction of bankruptcy. We are
told, when the administration threw the
doors Of the treasury open to the shy
locks Of Europe and invited them to
help themselves, that the outflow Of
gold was caused by the issue Of treas
ury notes for the purchase Of silver.
This was stopped. and when gold con-
tinued to go u we were informed (af-
ter two bond issues) that a syndicate OF
bankers had pledged themselves
to prevent the export of gold. The syn
did reasonably well until il
pocketed its immense profits, and then
It dropped the affair as a child would