The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1896-08-01
.ABoUT F1NANcE.
CnIcAGo, July 10, 1S9,

CHICAGO, July 10, 1896.
Charles Morgan, Barrie, ~ u.
My DEAR MoRGAN-Your brother
showed me letter a few days ago In
which YOU asked for some reading matter
on the gold question. As feel strongly
on the subject, | may as well give YOU
the benefit 81 my crude ideas, not having
any printed matter at hand.
There are n good many leading points
on this question which | think can be
briefly expressed and which appeal
strongly To my side OF the argument.
One 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
cheapy. Now, the cheapest money in
the world is in the strongest gold coun-
tries-yiz., England. The dearest money
in the world IL IN the silver countries
For example, money IN London today is
two per cent per annum while money in
Mexico, China, Spain, India, and IN fact
IN all silver countries OF the world, COM
minds loaning value Of from twelve
per cent upward. in the other gold
countries Of Europe, while money is not
so low as in England, the rate varies
from three TO five per cent to the bor-
ROVER.
may cite az good example % the
two currcncies two states adjoining one
another in South America-one British
Guiana, gold country with money at
four To ak per cent per annum; the
other Venezuela, with like soil and
climatic condition, silver country,
where interest rules at ten and twelve
per cent per annm.
CIRCULATION WOULD BE DECHEAsED.
Should we depart from u gold basis
Europe would undoubtedly send IN all
the currency securities that is, securities
that may no paid IA anything but gold
TO as, requiring an export OF either gold
or its equivalent in trade. II il takes
gold il takes that much OF our money
circulation. II il takes merchandise IL
takes that at a largely reduced value.
The consequence would be that shrink
axe Ia money circulation would run into
very large figures, while we could not put
out silver or certificates sufficient 90
take their place Tor many months or
years, so that during the next three or
four years, instead of the circulation in-
crpasing, as silyerites hope, il would
materially decrease. After lapse OF
time, no doubt, by putting their printing
presses and mints TO work, they could
largely initiate our currency with new
issues,
Currency depletion means low prices
for labor and every thing else. Currency
ut a fair rate per capita means prosper
| ty. Currency initiation means danger
again.
Going back into history we find
Europe using largely silver and gold
together With the expansion OF trade
one country after another found by sad
experience their inability 20 keep the
! two on a parity. England was the first
10 depart from this custom, then Ger.
many, then France. Holland, Belgium,
Italy, Austria, and last 81 all, Chill. Ii
was from no prejudice on their part, but
from the requirements of trudc that this
course was taken.
We can only have one standard, he IL
81 gold, silver or anything else, and the
experience of tho world has been that
gold Is tho best, Again, where the coun
try is most sound on its currency cues
ton YOU will find the highest civilization
Where money ~ dobascd, or il Other
than the recognized standard 81 IN,
world, civilization IN ON n much lower
plane. We can find at the present tim,
no silver country in the world, think
may say without exception, that il ia i
prosperous condition, whose govern
ment securities command respect nnt
full prices in the markets of the world.
TO this statement our friends from IN,
west will probably take exception, ant
cite ~ m example al a silver countr,
being proSpprOuG and VA good condition
tho case OF Mexico; but they will find i
difficult TO support their assertions
The writer had occasion last month {,
! buy In the city OF Mexico 500, 900 q
, bonds issued 10y the Mexican govern
ment. These bonds were bought Mt th
rate 81 forty-ciglt cents ON the dollar n
silver, the net cost 10 the purchase
. being $2f ITO In Mexican silver. As IN
, money TO pay for these bonds came iron
: this country, the amount of Amcricnl
funds used la the purchase of 500, OOl
Mexican government securities was Sia
: Oi21I, or about twenty-sig cents ol
r the dollar. Now it seems impossible 10
any country TO be In sound and pro,
porous condition whose securities are n
T heavily discounted ne ia the above casg
: PROM TIE INTELLECTUAL VIEW.
4 Looking 80 tho matter from an int
lcctual standpoint. we find arraycd %
the gold side the high intelligence ,
+ England, France, Germany, Italy, IIO
= land, Belgium. Norway, Swcdpn an
1, Cannda. On the other side we find a
inferior grade of intelligence, an abscnc
OF public schools, and a lower plane Z
2 morality, as 40 Spain, Portugal, sout