The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1896-02-09
nALFoUR AND RrarErALLrsm.


Arthur ]. BaIfour, First Lord Of the
Treasury in the English government
let's no opportunity pass to say a wore
favorable to bimetallism, in which he
is a firm believer. According to ou1
dispatches yesterday, in replying to a
deputation representing agricultural
interests. Mr.. Balfour declared it to be
his personal conviction that the agri-
cultural interests suffered doubly ow-
! ing to the present condition of the
/ currency. First, the reduced prices, of
which the agriculturalists complain, are
/ largely due to the artificial apprecia-
ton of gold which followed the de-
monetization of silver; and, second, the
artificial advantage given the producers
IN silver-using countries over produc-
ers in gold-using countries. The re-
duction of prices through the apprecia-
ton of gold is familiar to everybody:
the artificial advantage given the
producer in silver-using countries
over the producers in gold-using coun-
tries may not be SO clear, hence an
eXplanat ton.
Among the many evidences that we
have Of rapidly developing civilization
in japan is the recent entrance of that
country into competition with Euro
pean countries in several lines of
manufactures. Japan is silver stand
ard country, and at the present price
of silver the difference in the exchange
of its money and the money of the
single gold standard countries Is about
100 per cent. How this inures to the
benefit of the Japanese producer as
100 per cent bounty when in compe-
tition with a single gold standard
country was so APPLY illustrated re-
Gently in the Denver News that we
quote the following from the article:
The 900 per cent bounty" alluded to
may be understood from the follow
ing, using a bicycle for the illustration:
Say that, in Yokohama, a wheel of
certain standard can be made for $50
In japanese money, and a wheel may
be made here for $50 Unftes States
money. Export the American wheel
TO Japan, and, adding nothing for
transportation, it must be sold for 500
IN japanese money to bring first cost
for the standard money of that coun-
try is silver, and it will require 500
Japanese money to obtain $50 Ameri-
can money. This $50 being the first
cost of the American machine, it must
bring $100 in Japan to cover it, not
counting freight or other charges for
getting it there. OF course, the Japan
csc wheel could be sold for $50, in coin
OF that realm, and yield handsome
profit to it's maker.
But send the two wheels to London
for sale. The American wheel must
sell for at least $50 English money to
cover first cost, while the japanese
wheel, if sold for SIS English money,
would 'bring. first cost. The Japanese
with his SIS in English gold could read
lily exchange it for $50 in Japanese
coin-thus obtaining the cost of his
wheel The bounty spoken Of is com
mercially expressed in the phrase
difference in exchange Fifty dol
lars American money sent to japan by
draft would call for 500 in Japan,
while 500 Japanese money sent to the
United States by draft would call for
but $50 in this country.
AS the purchasing power Of silver in
Japan, and for matter of that in all
the silver-using countries, is not ma
reduced, but purchases as
much food, clothing, labor and pays
as much debt as ever, it is readily
seen that that there money is as val
liable to the people of those countries
as it ever was, and as valuable to them
as the money Of England is to the peo-
pie OF England. The difference in ex-
change is well nigh just SO much gain
to them, hence the artificial advantage
to by Mr.. Balfour that the
producers in silver-using countries pos
sess over the producers in gold-using
countries.