The herald., 1897-04-26
WOULD HURT JAPAN
An Intelligent Japanese Opposes
the Gold Standard

Tho Hong Kong Telegraph prints the
following interview with M. Sonada. al
intelligent citizen of Japan, who has jus
been making a study of the money ques-
tion in Europe:
"Since the ratio Of gold and silver COM
menced its f1uctuation in 1878 those ma
tions who had adopted the gold stand
ard had been making gains at the same
time. Gold countries are now under
great difficulties on account of the price
of commodities and the dullness Of COM
merce and industries. They are envying
the happiness enjoyed by the silver coun-
tries. 1t is worth. therefore. grea;
thinking about before enlisting with the
gold countries.
Although such countries as France,
America, Germany. Austria and Italy
are nominally on O gold standard. they
are yet making use of silver, and cannot
be called pure gold countries. Even in
England, where a pure gold system ex-
lists, several opinions on reorganization
of the present one are afloat. Disappro-
bations for gold standard system are al
ways loudly heard. 1t would, therefore.
be a great misunderstanding to believe
the gold standard as a sound system.
Is d InlSldhc " tdfNc 6OiQ dS cOdAa
without fluctuations and take silver as
with a continual fall in price. So far as
have Investigated. silver is not change
able. while gold is.
In 1873 the ratio of gold and silver went
to a little over 81 to l, from 16 against l.
What was the cause? 1t is question
whether 1t is a fall of silver or a rise of
gold. In investigating the prices of COM
modities in both gold and silver coun-
tries the prices went down in reciprocal
proportion with the rise of gold; on the
contrary, in silver countries the prices
did not rise according to the fall of sill
yer. From these points 1t is understood
that the fluctuations of the ratio of gold
and silver are due to the rise of gold and
not to the fall of silver. Therefore, the
question, which of gold or silver is more
changeable, must answer silver is less.
and consequently sounder money than
gold.
Should Japan adopt gold standard,
and drive off silver to foreign countries
the ratio might move and go beyond 80
against l. 1t would then be most disad-
vantageous for the trade of Japan. A
great difficulty would then be expert |
enced in competing with Italian silks in
the markets of France or America, and
with India yarns on the Chinese market.
'It is stupid to adopt a gold standard |
now in this country for the only purpose |
of inviting foreign investors. and would |
probably not be successful.
81 am quite sure that 1t will not be sus-
cessful for inviting foreign capital to |
this country by adopting the gold stand
ard. Even though 1t chance to be sue
cessful I believe it won't be we'll for ia |
pan. Should the expected capital come |
in and improve our commerce and indus
tries after the adoption had been made |
then our political economy as
being attacked by plague.
"Take America, for example. Are not |
the industries for that state mostly ex-
listing by aid of European capital? And |
what Is the result? Whenever an i'm
question regarding political |
economy arises such capitalists would |
take immediate steps to withdraw their |
investments, thereby causing great dis
turbance and injury among industrial |
circles, This should be good warning
for our country.
there would not be any inconvenience III
our going on with our present system
until the alliance for an international
bimetallic standard system exists.