The sun., 1896-02-10
TEE GOLD STANDARD.


| Sob NJ Ett nbtutstnSe ~ srVFtvWsUs rrs-u y
To THE EDITOR or THE SuS-Sfr: Can the
gold standard be maintained BY borrowing gold ?
Obviously not. Gold is not wanted for use Mt
home. and It is not borrowed for that purpose.
It is wanted for export; II Is wanted to pay for
imports. or for interest on debts our people owe
| to other countries. for the carrying trade. &c.
| When will the necessity for borrowing for such
purposes end? Manifestly only when wo pay In
some other way. borrowed gold never stays In
| the country that borrows It, Conditions that
mako IL necessary to borrow gold win send II
out again rs fast as 1t is liberated. Gold stays
| only where II goes of itself, in the course OF
trnde. Gold will stay In this country only as It
comes here In the course Of trade. and II will
como here in that way on the ono condition that
prices here are enough below the price lcvol of
| other countries TO make this the best market to
buy In, that is, to invest gold In. We can get
gold and keep II in no other way.
together. and they cannot both DO had at the
same time. Tho one condition on which the
gold standard can he maintained is low prices.
Nor can debtor nations maintain an even price
level with creditor countries. Prices must bc
lowe. with us than In countries owing no out
Tho condition. therefore. on which the gold
lower prices than now, but prices lower than in
countries not In debt-enoueh lower to induce
our creditors to take Of @ for what
No matter therefore. how ru!nous the fall Of
prices has been. nor what the consequences Of A
lower before gold can be made to stay y here here and and
until then we will not be in fact on gold basis
Tint Is the cost OF the gold standard and 1t can
Oe had at no less price. --
We have borrowed since 1909 slao. .ooo. 900.
and are now issuing bonds for Sl0o. 600. 900
moro. All that we have borrowed hns gone
from us. and all that we now borrowing will
nndoubtedly go In the same way. And will
there not be the same necessity to borrow again
when this Is gone, as now? II, after Sl6O OOO,-
600 had been borrowed. more borrowing IL
nceesssary MI %l not not more horrpwng be necessary
0oO.0ooa What will stop IL? The truth is.
every loan for such purpose increases the ne
cessity for more loans. md there I. no end bnt
the limit ct credit. and that OF course. means
bankruptcy.
This ia SO plain a proposition that anybody
over the country do see through It. II bankers
don't, and are asking when IL is to stnp IL Mr.
Cleveland and Mr.. Carlisle think this policy
has the aprroval of the people let them take q
outside Of Wall street, and they viii hear de.
nmncations OF 1t in language that would mako
Ti,lmnn's TRADE appear mild
to maintain the gold standard by borrowing
gold ia hunder. and they believe IL Is an
preaching very near the line Of criminal blum
derinR.
One thing more. 1t is not because Of the OK.
istence OF greenhacks that gold goes nut of the
country. 1t would go ont just as onickly and
Just as certainly II bank notes took the place Of
encc to the business interests OF the country
whether tho gold that went abroad was
gathered first in the Treasury and was then
banks. The question of the gold standard is at
bottom n question OF price levels and nothing
else: and price levels do not depend on who
Issues Issues the paper currency or on whether the
notes. A. j. wARSER'