River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1896-07-30
Arguments in favor of Sound Money.

We republish the following letter
which appeared in the Chicago
Tribune and Times-Herald of July II,
1896:
One of the most urgent motives 81
the silver party is that they want
cheap money. BY that l suppose The
mean money they can borrow cheaply
or earn cheaply. Now, the cheapest
money in the world is in the strong
est gold country-yiZ., England. The
dearest money in the world is in the
silver countries. For example, money
i'm London to-day is per cent per
annum while money in Mexico, China,
Spain, India, and in fact in all silver
countries of the world, commands a
leaning value of from II per cent up
ward In the other gold countries of
Europe, while money is not so lew as
in England, the rate varies from to
per cent to the borrower.
may cite as good example of the
two currencies two states adjoining
one another in South America-One
British Guiana, a gold country, with
money at to per cent per annum:
the other Venezuela. with like soil
and climatic conditions, silver
/ y
II per cent per annum.
Circulation Would Be Decreased.
Should we depart from a gold basis
Europe would undoubtedly send i'm all
| the currency securities-thdt is.
securities that may be paid in any
| thing but gOld-tO Us, requiring an
export of either gold or its equivalent
| in trade. If it takes gold it takes
1 81, D, Of cir n
| If il takes merchandise il takes that
at largely reduced value. The con-
| sequence would be that Shrinkage in
money circulation would run into
| very large figures, while we could not
| put out silver or certificates sufficient
to TAX, their place for many months
or years, so that during the next three
| or four years, instead of the circula-
ton increasing, as silverites hope, it
| would materially decrease. After a
lapse of time, no doubt, by putting
their printing presses and minis 10
work, they could largely initiate our
| currency with new issues.
| Currency depletion means low
| prices for labor and everything else
| Currency at a fir rate per capita
! means prosperity. Currency imitation
| means danger again.
Going back into history we fine
Europe using largely silver and gold
| together. With the expansion OF
| trade one country after another found
| by sad experience their inability t
keep the two valueSon parity. Eng
land was the first TO depart from thi:
custom, then Germany, then France
Holland, Belgium, Italy, Austria
and. last of all, Chile. Ii was from
no prejudice on their part, but from
the requirements of trade that this
course was taken.
We can only have one standard, bt
| il of gold, silver or anything else, anC
the experience Of he world has been
thf.t gold was the best. Again, where
! me country is most sound on it
currency question you VIII ma tn'
highest civilization. Where money i
debased, or is other than the recogniz
ed standard OF the world, civilization
is on a much lower plane. We car
find at the present time no silye
country in the world, | think | might
say without exception, that is In
prosperous condition, whose govern
menJ securities command respect lnC
fun prices in the markets of the
world.
To this statement our friends from
the West will probably take exception
and cite as an example of a silve
country being prosperous and in gOoI
condition the case of Mexico; but the.
will find il difficult TO support thei
assertions The writer had occasion
last month TO buy in the City o
| Mexico $50, 900 of bonds issued by tn
Mexican government These bond
| were bought at the rate Of forty-eigh
cents on the dollar in silver. the ne
cost to the purchaser being S24, l7O IL
Mexican silver. IS the money 70 pa
, fer these bonds came from thi
country. the amount Of American
funds used in the purchase of $4,000
/ Mexican government securities wa
sI3.Ol2.II. or about twenty-six cent
on the dollar. Now il seems im
possible for any country TO be in
sound and prosperous condition who's
securities are SO heavily discounted a
in the above case.
From the Intellectual Tee.
Looking at the matter from an in
; tellectual standpoint. we find arraye
; on the gold side the high intelligenc
Z OF England. France, Germany. Italy
! Holland. Belgium. Norway. Swede