The herald., 1896-10-02
New York, Sci
AND THE SILVER QUES-
TION

1t is with great interest that have
read the discussion of the silver ques-
ton in the Chicago Record, and it has
occurred to me that it might be of some
interest to its readers to have the views
of one who has had the financial ex-
perience of fifteen years within stones
throw of Lombard street.
1t appears that you Americans were
awakened to find that silver had been
"demonetized," and that ever since you
have been in a turmoil of debate and in
quiry to ascertain how it was done, why
it was done and what consequences re-
suit from the said decentralization. That
silver was stricken down for purpose
there Is no question. Had there been
no purpose for SO doing there would have
been no opposition to the restoration
the free coinage laws as they existed pre-
vious to 1873.
There We're several reasons for the pro-
hibition of the free coinage of silver,
thereby shifting the debt of the country
from the double standard to the single
gold standard, and one of the chief OF
these was to enable the exchange deal
ers to havea steady and profitable ex-
change on the silver standard countries
with falling market.
Another purpose was to cheaper the
securities of the silver countries jas
measured by gold, this class of sectr-
the fall of the gold price of silver, de-
preciated over &200, 900
To create competition in the price of
cotton, hides and other products thus
enabling this and other European coun-
tries to get cheap foodstuffs and raw
material, was also another principal pur-
pose for bringing about the fall in the
price of silver as measured by gold.
The method by which the prices of
raw material were cheapened was to get
quotations from India on wheat and cot
ton, and thereby regulating the price of
the American product in Liverpool. The
dealers would also get quotations for
hides and wool from South America and
thereby regulate the price of these COM
modities in this market for American
and Australian hides and wool
In order to arrive at a proper under
standing of this matter, it is necessary
to know that the silver price of cotton
and wheat in India as measured by the
rupee is practically the same as in 1873.
Silver being the standard in India has,
therefore, not deprecated in that coun-
try.
The same principal holds good in South
America, as wool and hides were pur-
chased on the silver basis
In 1873, and before the fall in silver, the
gold sovereign could only purchase in
exchange 10 silver rupees. Consequently
Tic SOlu SOteIclSu Cpulu IOt puICldSS
any more wheat and cotton in India
than could be purchased for 20 silver
rupees. Therefore, just in proportion. as
more silver could be tucked" into gold
sovereign, so much more Indian wheat
and cotton could be purchased with the
sovereign.
In 1873, and for some time after, gold
sovereign could purchase only about
four bushels of Indian wheat delivered
at Liverpool; but for many years, owing
to the cheapness of silver, the Liverpool
wheat buyer has been able to exchange
his gold for cheap silver, andeis so en-
abled to obtain seven bushels of wheat
delivered in Liverpool for his gold SOW
ereign.
The result of the fall in the price of sill
yer was at once to cause a corresponding
fall in the agricultural products, and the
land of Great Britain, Australia, Canada
and the United States. 1t also caused a
fall in the price of such other kinds of
real estate as are situated In the agricul-
ltural districts of those countries the
loss entailed being variously estimated
at from 300,000000 to 50000O,000 pounds
sterling.
Gilt-edTed securities have not Of