New-York tribune., 1896-10-27
EVILS OF CHEAP MONEY.
AN OBJECT-LESSON FROM ARGENTINA
wAGE-EARNERS THE GREATEST
cy-EJ-t-pE.RS

SUFFERERS.
Washington. Oct c6-Mr Buchanan. United States
Minister to Argentine Republic. In report to the
Department OF State on money and prices IN iore's'
countries says:
"A majority OF those who have written to me from
tho United States regarding wages and prices nave
invariably asked me To give them the result Oh MY
obsery tions with regard to the practical WORKINGS
OF the chcap r. money system OF this country as IL n'
affected and affects the farmer and waseearher.
on this point let say that from an extenhei ana
careful personal observation. am convinced that.
with possibly few exceptions. all classes OF "ork-
men here to-day are receiving less wages. the pur-
chasing power OF their money being conSiuere''
than they ten years ago.
III +. true and easily understood. that as long
as gold was rising the farmer who was selling MS
products as he had always done. and continues 20
do on a gold price. fixed outside OF the country,
was steadily receiving higher pnper prices for all
that he had TO sell and was In consequence 'ilTc't
gainer by high gold II is equally true that ne mas
been the gamer in other ways: he has paid but III
tie more rent. II any. for his land. than he paid
five years ago. Strange as 1t seems. he has paid
and l. to-day paying. but rihe more to his labor
than when gold was on par ten years ago ana
"a he produces his farm the n eat. vegetables.
ETC. necessary for his family, he has had the hons
share OF the gain in the rise OF gold.
"On the other hand. the workman found 1t very
d,cul, to get an Increase In his wages gold ad-
x
average OF 20 per cent In his earnings. while
the farmer had been receiving the benefits of the
Increase in the gold premium. averaging more than
70 per cent for the same period. In the mean time
the merchant found II easy and proitabl" to IN
crease the price OF his goods. In keeping with the
rise OF gold Rents likewise increased. although
slowly. and. as the prices Of all commodities
rose. tho laborer found himself daily being made
poorer. Agi,ate he would. he could not get his
salary Increased In any reasonable proportion tn
the Increase In the premium gold. Strikes were
r-sor'cd to- and all sorts Of efforts made to
bring about an increase In his receipts. until finally
he last year reached what We may call wage high
water mark
since then gold has steadily fallen The first
person to feel the decline has been the farmer who
is complaining bitterly OF the relatively low prices
he Is receiving for his products. white he finds him
self obliged the prices TOR what ne
buys that h" did when he received s. 30 more for
every lo kiios OF wheat than he now receives:
Low gold does not induce the merchant To mark
down his goods with the same goodwill he mani
Tested when he advanced their price: Notwiih,
gold falls. the workmen VIII not IN all probability
consent to II decrease In his present wages without
a bitter ight can he do so unless there IL
sharp decline IN rents and I'm the cost Of living A.
gold declines, the wage Garner who receives a gold
pcnses remain as before. This period Of readjust-
incnt In the value OF the money OF the country has
with the advent OF low gold. the farmer who made
money s rise. turned specnlator. ana holds
grain cattle for II higher rate. The merchant
cannot make collections because OF this condition
OF things. and ds he has to pay abroad, he also
becomes "A spcculator and waits FOR lower gold.
Thus. every one. to some extent. becomes a
sp.culator at least the extent Of trying TO profit
In some manner by the daily rise ana iall In gold
Of the fact that the unsettled and shifting value
thus given to IN" currency OF this Republic Injuries
trade here. there can be- no question: and II can he
equally stated as fact that the wide Fluctuations
that have taken plnc" In the value OF IN" currency
within the last year or two have brought on com
mcrcial situation far from satisfactory 10 the Her-
chants. farmers or Nofklngn.'n