New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-09-24
EUROPEAN FINANCE.
H..
,,r rRJ-E FOUNDATIONS OF ECONOMIC
INDEPENDENCE CONTRAsTED WITH
PoPULIsr SCHEMES OF FINAN-
CIAL SERVITUDE.


poPJJLIsr SCHEMES OF FINAN-
CIAL sERvITUDE.
London, September T.
That gold recommendation is not exclusively
British policy as the Popust repudationiss
:, America assert. but is in the broadcast sense
. European policy. have undertaken to prove
=. previous letter The trend of financial
on,nion and of administrative experience
throughout the Continent has set strongly
aur,ng the last twenty-five years in the direc-
ton Of a single gold stapdard. France and her
monetary allies in the Latin Union. after en-
answering in vain for thirteen years to keep
cold and silver on parity of value by inter
national agreement. suspended silver coinage
and IN practice adopted the single standard for
,,s regulation Of their exchanges Germany
,.ss converted from a silver into gold country.
Austria Hungary and Russia. after suffering
tcm the evils of 1uctuatng silver and debased
raper currency. have accumulated great re
serves Of gold in preparation for an ultimate
resumption Of gold payments. Holland Nor
xav Sweden, Denmark. Roumana and other
nations have adopted the single gold standard.
is European policy which has been forced
,,on Continental countries by Overproduction
4, America the failure Of three International
monetary conferences and the continuous
sbr,nkage of the value of silver. There are no
s,ens Of reaction against it in any European
cspital Continental nations are Influenced less
nv the force OF British example than by practi-
"a, experience and by the warnings which come
N them across the sea from America, where
national credit has been undermined by silver
agitation.
uow ECONOMIC INDEPENDENTS Is WON.
The Populist repudiationsts not only de-
,,dbe gold monometallism as a British policy
HIT they also declare that Its adoption has
srcucht other nations into financial servitude
N London" That they wrong is clearly
shown by the experience of Germany, country
from which Americans have much 20 learn In
practical economies. Germany. by the Imperial
acts 81 lS71-13, committed irrevocably to
The single gold standard; and instead OF pass
inr under the yoke of financial servtude TO
England she has emancipated herself from the
evils Of a fuctuating currency, and established
,runphantly her economic independence Ger
mary with her reformed monetary system. her
protected industries her technical education ana
her commercial enterprise. Is to-day the most
formidable rival of England in the markets OF
the world. OF servitude there are no signs
when German credit is unrivalled on the Euro
pean Continent when German manufacturers
have secured full control of the home market
and when German merchants are competing
with tremendous energy in England ana
throughout the world with their British rivals.
So far as Germany's experience during the ias'
twenty-five years has extended. ii is conVlnc-
ing proof that stable conditions of finance ana
a .ngl, standard of value are of inestmable
utility in fostering and developing economic
INDEPENDENCE The German currency is now as
by in
alton as the English monetary system, and it
has facilitated the remarkable industrial re-
vfval which is now in progress. A bill drawn
upon Germany in any part of the world mas the
promise of the potency of full gold payment
whenever il natures and il is received with the
earne degree of confidence as a bill drawn upon
England Without this monetary system Ger
nan merchants would be placed at serious dis-
advantage in competing with English rivals
What is true of Germany applies with equai
force to all European countries. Their depeh-
ience upon a great centre Of capital ana pahN-
ng like London is increased when their cur
-ency systems in extr me disorder, ana
when their credit is impaired by uncertainty
-especting standards of value and exchange
4. the clearing house of the exchanges of the
world London profits most heavily when there
are the largest margins for brokerage ana dls-
counts caused by impaired credit and uncertain
standards abroad Russian wheat has been sold
IN England under these conditions for long
ne-jod at disadvantage in comparison with
American wheat The conditions Will be re-
versed il Russia resumes gold payments under
a single standard while the United States in
the event Of Mr.. Bryan's election. sinks to the
level Of other silver countries. Vienna will be
less dependent upon London than it is now, II
the process of gold resumption in Austria Hun
gary be carried out to the end and stable cur
rency with single standard be established
Independence in monetary markets. Is the frui'
Of confidence inspired at home and abroad IN
National credit and the currency system. Ar
gentina, with its disordered finances ana I'M
,aIred credit has been in monetary servituie
70 England. where its wheat crop and WOOL cup
have been sold less advantageousy than Amerl-
can wheat and Australian wool GERMANY on
the other hand. has been on level with Eng
land since the reform Of her monetary system,
And has been emancipated from all dependence
upon London.
HOW FINANCIAL SERVITCDE is INCREASED
In the event Of Mr.. Bryan's election and OF
the conversion Of the United States into silver
country with gold at premium American
farmers and planters would still want TO sell
their surplus wheat and cotton abroad; and the
price which they would receive for 1t would be
determined as il is now. by the general law OF
srrpIy and demand; and 1t would be price IN
gold established in London or Liverpool They
could not get more for 1t than its market value
in English gold The fact that the minis OF the
uri,ed states had been opened to sllVer-owners
would not impart additional value to surplus
wheat or cotton sold in England on a goid
basis; nor would it release either the planters
or the farmers from dependence upon the con-
diticns Of foreign exchange. Indeed IL may
be allowed to repeat the Popuiist phrase
would inevitably increase the burdens OF IMAM
cal servitude 10 London" The price would De
fixed in gold and virtually paid in deprecated