The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-06-10

one occasion voiced in private CONVEX
sation: I'VE have got into a swamp
with our gold standard, and we don't
know how to get OUT The worst is
that we are getting deeper and deeper
into the swamp and that it is be-
coming harder and harder to get
out.
If at the Paris Monetary Conference
of 1881, theory had not been thrust to
the front, the solution would have
been easy. | then vainly urged on
the late Dana Horton and Henri Ger
nuschi that we ought to be content
| with what was then attainable. In
stead of this, the United States, by
their perverse monetary policy, made
it easier for the European gold powers
| to maintain the gold standard.
When | first joined in the battle of
| the standards, in 1880, | tried to show
that the international double stand
! ard does not pre-suppose the partlcl-
| patton of England, but that on the
| contrary it would be more advantage
| Gus for Germany, France and the
| United States if they adopted bimet-
allism without England. Either u
| fixed parity between silver and gold
would then be attained and then Eng
| land would have no advantage; or gold
would remain at a premium, and then
England would be the land of the
highest money value, to which every
one would be anxious to sell and from
which no one would willingly buy.
Her economic decline would thus be
inevitable.
About 1885 [ secured the acceptance
of this view, which | still regard as
correct For ten years the German
bimetaIlist party strove, unfortu-
nately without success, to realize the
programme: bimetallism without
England, in connection with the Latin
Monetary Union and the United
States. If in 1895 we decided to rec
ognize the participation of England as
an indispensable prerequisite to the
adoption of the double standard by
Germany, it was not because our mon
etary views had undergone change,
but because we recognized that we
made no Roadway with our former
programme If the silver price had
declined still more, or if the decrease
in the gold production, down to about
1885, had continued still farther, the
maintenance of the gold standard
would have been impossible. But the
gold production unexpectedly in
creased and the silver price rose, so
that the situation became more en-
durable, especially for commerce and
industry. \ respite was thus created
for the gold standard.
How long the gold production will
maintainsits present figure, no one can
tell | believe with Suess that 1.-The
greater the production, the sooner
will the end be reached" In the same
way. the movement of the silver price
defies prediction. No one can tell
whether silver four weeks hence will
be quoted at 20 pence, 81 pence or 30
pence. Every fluctuation of the silver
price intensifies the disturbances due
to the gold standard. If the silver
price is rather stable, or even slowly
rising. as happens TO be the case at
this moment, certain circles feel
degree of reinsurance. People think
they can plod along under such condi-
tions. until q sudden and great fluc-
tuation once more shows the untena-
BILE character of the present situation.
That universal gold standard
might be introduced is conceivable.
But that it is practically impossible
to obtain the gold necessary for that
purpose, is to-day admitted by the
most inveterate gold men. Accord
ingly the typical gold man of to-day
always demands the gold standard
only for his country. In London the
saving IS that England must adhere
to the gold standard. but it is very
much to be desired that the rest of
the world should adopt bimetallism.
But the gold standard man of Ger
many wishes to have his country in
agreement with England on the
money standard. Austria-Hungary
does not wish to depart from the Ger
man standard, nor Roomania from that
of Austria-Hungary; and thus the
present state of affairs necessarily
leads to the extension of the gold
| standard, which is everywhere recog-
nized as dangerous and impossible.
| One land after the other makes abor-
| tive attempts to introduce the gold
| standard, and lapses into fiat money.
| This is no longer the exceptional con-
| dition in the case of ruined finances,
| but it is the rule with all debtor coun-
| tries. The attempts made in Russia
and Austria-Hungary to introduce the
| gold standard will lead to no other re-
| suit than that obtained in Italy; the
| gold has to be locked up or it will
| flow out of the country; and the first
| untoward event causes the reappear-
| ance of the gold premium, higher than
| ever. If the United States has thus
| far escaped fat money, it is solely ow-
| ing to the increase of the gold produc-
ton. On this increase in fact depends
| the very possibility of the existence of
the gold standard The bad news from
the Transvaal and from West Austria
liza are more decisive than all DECLARE
tions of the British ministers. If a crash
is imminent i'm West Aatralia, as would
appear from the reports of Mining
| Councillor Schmeisser, if it is true that
in the Transvaal the climax of the
gold production has already been
passed, if the wealth of Colorado is
destined to be quickly exhausted by
| A = ha