The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1896-08-06
GOLD 0R SIIVER7'
An Interesting Letter on the
Great Money Question.

Great Money Question.
DEAR HONEY AND CHEAP HONEY.
4 Fall Explanasion of Matter Plainly
gand Simply Ezpresssd-rn silver Coun-
tries Money ls Dsars in Gold Countries
u IL Chsap, ~ Loans.
Gordon b York, q Cleveland firm,
havebeen sending to their correspond.
ents . very. interesting letter. written
By Mr.. George D. Boulton Of Chicago
70 Mr.. o. Morgan. postmaster Of Bar
fies N. D.. The letter has appeared
In several Chicago papers and 10 -
folloWs: ~ 49, t'-- ID s
! Wss "CHIoAao, July 10, 1895.
"Charles Morgan. Barrie. Nd:
'MY DEAR MoRaAN-Your brother
showed me letter few days ago in
which you asked for some reading mat.
ter on the gold question. As ! feel
strongly on the subject. may as we'll
give you the benefit Of my crude ideas,
not having any printed matter ct hand.
''There are . good many leading
points ON this question which think
oan be briefly expressed and which ap.
peal strongly to my side Of the argu.
ment.
zone Of the most urgent motives Of
the silver party is that they want cheap
money. BY that suppose they mean
money they can borrow cheaply or earn
cheaply. Now, the cheapest money in
1.> L. Sv1k ko pkv
try-viz., England. The dearest money
in the world is in the silver countries.
For example, money in London today 10
2 per cent per annum, while money in
Mexico. China, Spain, India. and in fact
In all silver countries Of the world, COM
mands loaning value Of from IL per
cent upward. In the other gold coun-
tries Of Europe, while money is not so
low as in England, the rate varies from
to & per cent to the borrower.
II may cite as Q good example Of the
two currencies two states adjoining one
another in South America--one British
Guiana, gold country, with money at
to 6 per cent per annum; the other
Venezuela, with like soil and climatic
Conditions, silver country, where In.
terest rules at 10 to IL per cent annum.
Nv : Decrease Circulation.
''Should we depart from gold basis
Europe would undoubtedly send in all
the currency securieties-that is, secur-
titles that may be paid In anything but
gold-to rs, requiring an export of
either gold or its equivalent in trade.
II it takes gold it takes that much Of
our money circulation. If 1t takes mer.
0handise, it takes that at q largely re.
duced value. The consequence would
be that shrinkage in money circulation
would run into very large figures. while
we could not put out silver or certifi.
Gates sufficient to take their place for
many months or years, 80 that during
the next three or four years. instead Of
the circulation increasing as silverites
hope. 1t would materially decrease
After lapse Of time, no doubt. by put.
ting their printing presses and mints to
work, they could largely sinfiate our
currency with new issues.
Currency depletion means low prices
for labor and everything else. Our.
rency at fair rate per capita means
prosperity. Currency imitation means
danger again.
t"Going back into history we find Eu-
rope using largely silver and gold to.
gether. With the expansion Of trade
one country after another found by sad
experience their inability to keep the
two values on parity. England was
the first to depart from this custom,
then Germany, then France. Holland.
Belgium, Italy, Austria and, last Of all.
Chile. It was from no prejudice on
their part, but from the requirements OF
trade, that this course was taken.
s'We can only have one standard, be
it of gold. silver or anything else, and
the experience of the world has been
that gold was the best. Again, where
the country is most sound on its cur
rency question you will find the highest
civilization. Where money is debased.
or Is other than the recognized standard
Of the world, civilization is on much
lower plane. We can find at the present
time no silver country in the world, I
think might say without exception,
that is in prosperous condition, whose
government securities command re.
spect and full prices in the markets Of
the world
s. A Mexican Example.
ITO this statement our friends from
the west will probably take exception,
and cite as an example of silver cOun.
try being prosperous and in good con-
dition the case of Mexico; but they
will find it difficult to support their as
sertions. The writer had occasion last
month to buy in the city of Mexico $780,
600 of bonds issued by the Mexican
governmental. These bonds were
bought at the rate of 44 cents ON the
dollar in silver. the net cost to the pur-
chaser being $24,l70 in Mexican silver.
AS the money to pay for these bonds
came from this country. the amount of
American funds used in the purchase
Of $50, 900 Mexican government securi.
ties was 3,0l2. IL. or about 26 cents on
the dollar. Now it seems impossible for
any country to be in a sound and
prosperous condition whose securities
are so heavily discounted as in the above
case.
s.Looking at the matter from an in
tellectual standpoint, we find arrayed