The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1896-10-31
G~OLDANGSILVER IN BELGIUM

An interesting Letter sent to n Chicag.
Paper by a Distinguished Economist.
The Enclosed letter to the minister O
the United States at Brussels reache,
me from M. Allard, the distinguished
Belgian publicist. Coming from /;
source free from political bias, it il
likely to interest equally the supporter.
OF Mr.. Mckinley and those of Mr. Bry
an. each party being, as we are assured
equally in earnest to restore silver tt
the worlds currency, the methods only
being different:
To His Excellency the Hon. James Currio
United States Minister, Brussels:
feel it my duty to answer without delay
the letter which you kindly addressed to ine
yesterday, but | beg your forgiveness if here
in the country, far from my office and my ref
erences. | am loss explicit than l should wish
to be.
follow In my answers the same sequence
which you have adopted In your questions.
Flrst.-The law of Belgium gives to every
debtor the unquestioned right to pay, at his
option, in gold or silver, whether this debtor
be the bank. the government or q private citi-
zen. native or foreign.
Second.-No official estimate exists of the
quantity of money actually in circulation il,
Belgium. but this much can be affirmed-that
practically no gold is met with, SO that the M.
tional bank, which alone issues bank notes in
Belgium, never pays gold when these notes
are presented, but always pays silver.
Third. -At its birth in 1881 Belgium adopted
the french monetary system, based ON the two
metals, gold and silver. e., bimetallism.
But about 1851. when the gold mines of Cali
fornia and Australia produced gold in large
quantities. Belgium demonetized gold and be-
came silver monometallic.
About 1865, however, business became SO de.
pressed in Belgium that the people forced tho
minister, NJ. Frere- Orban, to retire and Obliged
the government to become again bimetallic.
About 1873 France prevailed upon tho Latin
states-France. Italy, Belgium, Switzerland
to suspend the coinage of silver, which sus-
pension established here a kind of IimDinc
monometallisn for though silver can no lon
ger be coined the then existing silver coins
continue to circulate within the Latin union,
which union dates from 1865.
Since 1873 u crisis, consisting in n fall in all
prices, exists continually, nor does it appear
possible to arrest its progress. This fall in
prices, reactIng on wages, is now evolving a
social and industrial crisis.
You ask me why we returned in 1873 to mon
ometallism, limping though it be. l can con-
ceive no other reason than that it was to
please a certain class of fnanciers which prof
tied thereby-a class supported by theories in
vented and defended at that time by some DO.
Htical economists, notably by members of the
institute of France.
Fourth.-Aou ask what influence these mon
ctary measures have had in Belgium ON inlus-
try and wages. Money, which was already
in 1873, has become still scarcer. and
that fail IN prices which was predicted has
taken place. The average fall in the price of
all the products of labor is so per cent since
1873; that of cereals over IS per cent. Industry
is no longer remunerative, agriculture is ruin
and everybody is clamoring for protection
by import duties, while our ruined citizens
think of wars. Such is the sad condition of
Europe.
Fifth.-For the last 20 years no new gold or
silver has been coined in Belgium.
Sixth.-The mint pays for gold 8, 437 frame,
per kilo and for silver 220. 81 francs per kilo,
without any change since 1865, but since 1874
t no longer buys silver. There is thus a mint
price for gold only. but gold is always dearer
N the open market than the purchase price of
.he mint. Accept, M. le Minister, the assur-
inccs, etc., ALPHoNsEA LLARD,
Honoraire de la Monnaie de Bel. |
gique. Delegue du Commencement Beige aux
Confereux Montaire international, 1892, etc.
Aug. Il, 1896. TRANSLATED from the French.)
At my request, M. Allard has obtained
from Mr.. Ewing to publish
the letter. -Moreton Frewen in Chicago