The Pioche weekly record. [volume] (Pioche, Nev.) 1877-1900, 1896-04-02
An ILLUSTRATION.N
How the Agricultural interests Suffer frou
the Gold Standard

How the Agricultural interests Suffer from
the Gold Standard.
Arthur j. Balfour, first lord Of the
treasury in the English government,
let's no opportunity pass to say a word
favorable 10 bimetallism, in which he
is q firm believer. According TO our
dispatches, in replying to a deputation
representing agricultural interests,
Mr. BaIfour declared it to be his per-
sonal conviction that the agricultural
interests suffered doubly owing to the
present condition of the currency.
First, the reduced prices, of which the
agriculturalists complain, are largely
due to the artificial appreciation of
gold which followed the demonetiza-
tion of silver; and, second, the artificial
advantage given the producers in sill
Ver-using countries over producers in
vold-using countries. The reduction
y prices through the appreciation of
gold is familiar ~ eve-vEody; 'the
artificial advan Sage giseu os.s produces.
IN silver-using countries over the pro-
lucers in gold-using Countries may
not be so clear, hence an explanation.
Among the many evidenceslthat we
have of a rapidly developing civiliza-
tion in Japan is the recent entrance of
that country into competition with
European countries in several lines of
manufactures. japan is silver stand
ard country, and at the present price
Of silver the difference in the exchange
of its money and the money of the
single gold standard countries is about
100 per cent. How this inures to the
benefit Of the japanese producer as
lO0per cent bounty when in competi-
ton with single gold standard coun-
try was so aptly illustrated recently in
the Denver News that we quote the
following from the article:
THE 100 per cent bounty" alluded to
may be understood from the following,
using bicycle for the illustration:
Say that, in Yokohama, wheel of GER
tain standard can be- made for $50 in
Japanese money, and q wheel may be
tIad2 here for $50 United States money.
Export the American wheel to Japan,
and, adding nothing for transporta-
tion, it must be sold for S100 in Japan
ese money to bring first cost-for the
standard money of that country is sill
yer, and it will require Si0O Japanese
money to obtain $50 American money.
This $50 being the first cost of the
American machipe7 it must bring S100
in Japan to cover it, not counting
freight or other charges. Fey getting it
there. OF course, the Japanese wheel
could be sold for S55, in cola of that
realm, and yield a handsome, profit to
it's maker. But send the two wheels
to London for sale. The American
wheel must sell for at least $50 Eng
lish money to cover first cost, while
the Japanese wheel, if sold for S25
English money, would briur FIRST cost.
The Japanese with his S25 in English
gold could readily exchange it for S5G
in Japanese coin--tius obtaining the
cost of his wheel The bounty spoken
of is commercially expressed in the
phrase difference in exchange Fifty
dollars American money sent to japan
~ draft would call for 500 in Japan
while $500 japanese money sent to the
United States by draft would call for
but $50 IN this country"
As the purchasing power OF silver in
Japan, and for matter of that in al
the silyer-usinr countries, is not ma
teriaily reduced, but purchases as much
food, clothing, labor and pays as mucl
debt as ever, it is readily seen that
there money is as valuable to the peo
pie of those countries as it ever was
and as valuable to them ns the money
of England is to the people OF England
The difference in exchange is wei
nigh just so much gain to them, hence
the artificial advantage referred to 10y
Mr.. Balfour that the producers in sill
ver-using countries possess over tbs
producers in gold-using countries. -
Salt Lake Herald.