The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-11-14

Journal:
I enclose you an article headed why
France Has I'rnl,oscd Free Coinage.
which appears in the most prominent
position in the London Times. and which
will. ! venture io think. liz read with
great interest an your side of the sea.
I lit is French wheat" says the cores
pondent. (which has caused the whole
mischief"-the mischief being the pro-
pusal of the French government to re-
vert to the free coinage uf silver. but
the Times correspondent fails to p.int
| out why protective duties III France
! iaIicd 10 kcciI tie lI.tc of rlchch
grown wheat Ut Il rcmuncrative level.
4 he real reason WAS that while the
French were increasing their tariff. the
snNer ana paper cNcha.Ses between
1881 and 1894 fell So rapidly that protec-
ton quite failed to protect.
If the Indian wheat exporter can get
tin eXchangeI us many silver rupees for
one gold sovereign as formerly lie got
for two, nothing shout nf III al valorem
duty OF fifty per cent. Will suffice to
protect the French farmer.
Or. take again the case of Argentina.
" it'll Il gold premium at BuCnO> .Ayres
of 100 per cent. the Argentine exporter,
who sells his wheat IN London for Il
sovereign gels. i'll his paper money. ulie
pound, plus two pounds ten Sh!i:nSS.
and the value-the purchasing power of
that paper moueE-Was. rs we know
from the evidence gwen before our Agrl-
cultural depression. Commission, very
nearly us great. with gold at that great
Premium aS il was when gold and paper
We're ut par.
Ii is little wonder. then. that such he
ing the currency conditions of the world
of commerce. the average prOtcct.oniSt,
unenlightened as To the effect on prices
of these modern exchange convul$.onS.
has joined the camp of the free trader.
while free traders by wholesale have
recanted and become protectionistS.
AppropOs of this agrarian revolt,
which the Times correspondent OH
serves in France. and which has gained
such momentum also in Germany and
Russia. and which the accident of fam
inc IN India and Argentina is merely
checking in your country. let me draw
attention to the messages to Congress
of MIR. Daniel Manning in 1856 and of
Mr.. !. Rusk. in 1870. Mr.. Manning
wrote:
1t is n direct consequence of the mon
etary dislocation that the wheat of ln-
dia. which there fetched three rupees
per quinta fourteen years ago. and
there fetches three rupees per qu:ntai
today. can he soid in London tcost OF
transportation apart for as little as the
gold price of three rupees today-a fal,
of % per cent. This lowered price of
wheat in London has had to he met
with II lowered price of American wheat
i'm London. The price nf onr surplus
wheat determines the price of the whole
wheat crop of the United States. So
that the monetary diSlocat:on has al
ready cost our farming population who
number nearly half the entire population
of the United tSates, an almost incOm-
parahle suni-a loss Of millions upon
millions every year.
Mr.. Rusk wrote to Congress:
The recent legislation looking to :he
restoration Of the bimetallc standard
of our currency and the consequent en-
hancement of the value of silver has
nnquestinnahly advanced the price of
wheat in Russia and India. and in the
sane degree reduced their power OF COM
petition.
And Mr.. ONeill. our Consul Mt Itouen,
reporting to our foreign office upon the
fai'ure of protective duties in France,
says:
We know that the culture Of wheat
in the wheat-growiug districts of the
puniah has been steadily foStercl for
many years past by the depreciating
value Of the rupee when measured in
gold. There the premium an gold be-
ing less than the premium on gold in
Argentina. the corresponding advant-
age is. of course. smaller: Int it is snf-
fceni 10 enable the French importer
to pay three francs fifty centimeS of the
five francs levyahle az duty.
1t is something that the Sufferings OF
famine-stlicken India and the losses OF
the farmers in Argentina have not been
in vain. Famine and IocuSts have suf
feed To raise the price of whcai 10 the
normal hmetaIIic leve-tliat price level,
if himetalliSm were restored. would by
raising all prices. bring tlnnd tide of
prosperity 10 the entire industrial world.
1t is so cxtra0rtlinary that the desire
of few people. who are interested in
contractin. the currency. should he able
TO influence four-tifthS of the newspaper
press "a deny thr very aNinmS "f poll
ticai economy. If. however. We return
ry with the gold discoveries in California.
we find the currency isSiIe IL was
when il ante-daicd its prcSen; m'litifii
environment. we find il discussed from
its social AMI philosnphic standpoint y
few days since. when turnin. over tlie
pages Of the Quarterly Review f"r Sr'-
temlter. 1872 ! marked the following
passages in II paper an The Gold Dis
coyeries."
As the proportional increase in the cirz
culating medium has been far greater
i'm the United States than in the h,r
countries. il is there thar we -h'ui'!
louk for the greatest Increase in prices.
and accordingly the leftctS agree ihai
u very great riS.. has taken place there
in all descriptions nf property -
~; ue 81 iiuIlvsr property has. they say
duuiI,rd in the last f"ur years
II may hp argued thar - general r,>-
~ prices can hardly te regarded :,