Birmingham state herald., 1896-05-14
EUROPEAN MONEY DON'T COME
 WHXp'

argument of the gold standard advocates
 is that the agitation for bimetallism In
 this country and the fear that the effort
 of the people to restore silver to it's com
 stitutional rights and the privileges 1t
 enjoyed equally with gold prior to the
 characterization act of 1873 will be suc-
 cessful has kept and is keeping back the investment of foreign capital in Ameri-
 can enterprises, bonds and securities, and
 thus causing business stagnation and 1n-
 dustrial paralysis. This alleged argument
 is based entirely upon assumption, IS directly in contradiction of well known
 facts. and it's sophistry has been time and again exposed, until it's power to do harm
 has been in a great measure destroyed.
 Notwithstanding it makes it's periodical
 rounds in the gold standard organs on It's
 mission of mischief. But the we'll known
 and undeniable facts of current history
 do not deter them from repetition of mis-
 statements that have been so often re-
 futed that none but careless or reckless
 press would give them indorsement and
 currency.
 That hard times," which Is simply a
 short expression for scarcity or money
 flowing in the channels of trade, small
 production and light consumption or com
 modites, stagnation of business, 1dle cap
 ital and idle labor, have prevailed Wlth
 special severity in this country, and to @
 great extent in all gold standard coun-
 tries, for several years past, Is beyond
 controversy. It is equally undeniable that
 during the same period there has been
 unusual activity in all lines of trade and
 commerce, and all departments of indus-
 trial enterprise and development in the
 leading silver using countries or the
 world. In the United States the shock to
 and collapse of prosperity has been more
 widespread, universal and disastrous
 than in European nations, to whom we
 have been forced to sell our products at
 values measured by high priced gold. The
 consequent depreciation of American
 properties and commodities has brought
 poor returns upon the capital domestic or
 foreign, already employed in trade ana
 industry and affords no inducement for
 further investment in industrial enter
 prise and development, and it is therefore
 withheld from us and either hoarded or
 invested elsewhere for more certain
 usury.
 While this is the condition in the United
 States, what do we find In
 this respect in other countries far
 less favored by nature? It cannot be gainsaid that silver using Mexico Is ex- periencing a wonderful industrial devel- opment in agriculture, commerce. manu- factures, mining and railroad building, | and the rapid rise and progress of Japan is marvellous. It is beyond successful de- nial that much, but not all, of the pros- ,t,fAc t1oG m the employment of home capital for it is well known that European gold IS flowing into both Mexico and Japan in large quantities, to be invested in their | securities and aid in their development, | and for this there must be and is req | son that destroys the sophistry of the | gold standardists referred to above.
 | In this connection we are permitted to | use an extract from a letter of recent | date from MT. Chappell Cory, for many years one of the ablest journalists in Ala | bama, to friend In this city.
 q am more than rejoiced," says Mr. 1 Cory, ito know that the people of Ala | bama have spoken on the right side. l l am now hopeful that the Chicago con- | vention will do right, and if so our party | will win and give the nation free coinage | of silver If so, it won't be long before | our own people at Birmingham will be | buying the properties for sale and put | ting up their own money for new enter prises In other words, Americans will issue their own prospectuses at home instead of in Europe. When that day comes Europe will be eager to invest in | America again. Just now they prefer l investing in silver using Mexico and Ja- | pan and India and China and South | America. 'They will not now have anything to | do with United States enterprises and | securities, not because of silver really, | though they talk some about that. They | would just as lleve invest in a silver country as a gold one. What they want is a profit, certain return, on their | money, and their millions are lying idle l and would gladly be assured of per cent. The real reason they won't send | any money to the states is because they don't believe they will get it back at all, | either principal or interest. There is | hardly man In this country who doesn't l own our securities, on which he gets no | dividends and which are worth less than l he paid for them. The owners of gilt l edge railroad bonds feel lucky to get their interest and are constantly trem- bling over fresh news of receiverships of
 our great properties like the Baltimore
 and Ohio railroad. The whole public | here have simply got bad case of | burnt fingers and the bellyache on Ameri- can investments"
 The people of Alabama have known Chappell Cory to long and too favorably 1 to need to be told that he is close and | sagacious observer of current events. and has deep insight into cause and effect. | He wrote the above from London, where | he has been residing the last two years. and 1t goes without saying that he has utilized his opportunities for studying l the effect of the British gold standard | upon both England and America, es- pecsally upon his own country, and his l observations are the more valua ble for l that reason. Manifestly he gives clear and right exposition of the cause that prevents the investment of European l canital in gold standard America and