Middlebury register. (Middlebury, Vt.) 1886-1937, 1896-02-21
THE GOLD STANDARD.
oANit BE MAIN AIMED BY BORROWING
GOLO2

GOLO2
From the New York sun.
To Mc Editor Of the ,Sun-Sr: Can
the gold standard be maintained by Dor
rowing gold? Obviously not. Gold is
not wanted for use at home, and it is not
borrowed for that purpose. 1t is wanted
for export 1t is wanted to pay for i'm
owe to other countries, for the carrying
trade, &c. When will the necessity for
borrowing for such purposes end? Man
ifestly only when we pay in some other
way. Borrowed gold never stays in the
country that borrows it. Conditions
that make it necessary to borrow gold
Will send it out again as fast as it is libcr-
ated. Gold stays only where it goes of
stay in this country only as it comes
here in the course of trade, and it will
come here in that way on the one con-
dition that prices here are enough below
this the best market to buy in, that is, to
invest gold III. We can get gold and
keep it in no other way.
High prices and the gold standard do
be had at the same time. The one con
dition on which the gold standard can
be maintained is low prices. Nor can
debtor nations maintain AN even price
must be lower with us than in countries
owing no outside debts.
The condition, therefore, on which the
gold standard can be maintained here is
not only lower prices than now, but
prices lower than in countries not in
debt-enough lower to induce our credi-
tors to take of us commodities for what
we owe them rather than demand gold.
No matter, therefore, how ruinous the
tall of prices has been, nor what the
consequences of a further fall may be,
they must go good deal lower before
gold can be made to stay here, and I'M
til then we will not be in fact on a gold
basis. That is the cost of the gold
standard and 1t can be had at no less
price.
We'have borrowed since 1893 SlG2.-
600, 600, and are now issuing bonds for
500, 600 more. All that we have
borrowed has gone from us. and all that
we are now borrowing will 90 in the
same way. And will there not be the
sa ne necessity to borrow again when
this is gone, as now: If, after $780,
600, 900 had been borrowed, more bor-
rowing is necessary, will not more Dor
rowing be necessary after $500. 900, 900
have been borrowed and will the neces-
sty stop at $500, 100000 or at 81 ,0O0,-
600, 900: What VIII stop it: The truth
is, every loan for such a purpose in
creases the necessity for more loans and
there is no end but the limit of credit,
and that, of course, means bankruptcy.
This is so plain proposition that any
body can see through it, and headed
men all over the country do see through
it. if bankers don't, and are asking when
it is to stop. If Mr.. Cleveland and Mr..
Carlisle think this policy has the APP
proval of the people let them take trip
through almost any part of the country,
outside of Wall street, and they will
hear denuncations of it in language that
would make Tillmans TRADE appear
mild.
The truth is, plain people know the
attempt TO MAINTAIN the gold standard
by borrowing gold is bluuder and they
believe it is approaching very near the
line of criminal laundering
One thing more. 1t is not because of
the existence of greenbacks that gold
goes out of the country. 1t would go
out Just as quickly and Just as certainly
If bank notes took the place of green
backs. Nor would it make any differ
ences to the business interests of the
country whether the gold that went
abroad was gathered first in the treas
ury and was then taken from there. or
went Adirectly from the banks. The
question of the gold standard is at bot
tom question of price levels aud
nothing else; and price levels do not de-
pend on who issues the paper currency.
or on whether the volume is made up of
bank notes or of treasury notes.
4. j. WARNER.
SUR-1 REASIIRY IN a EIIhhE