The times., 1897-11-07
Mr. Ilord on cold PrIccs.


In an article in the London Statist,
which has attracted some attention in
economic and financial circles, Mr.. Thomas
Lloyd, the prominent British statistielan,
states The lew that the recent and stead
rise in the purchasing power OF gold. in
the face of a largely increased produc-
ton. tends To discredit the theory Of lis
dependence upon the law of supply ana
demand. He points out the fact that
whereas the gold production OF 1882
amounted only TO 5,125,ooo ounces, shat
Of 1896 was IL. 25O, 900 ounces.
MIR. Lloyd is inclined 10 tie theory that
il is The high cost of production which
maintains the cresccndo movement in gold
value as compared with things exchange
able for it, Notwithstanding its increased
supply We are mabie to follow him ia
this line of argument, the force OF which,
indeed, we think he destroys iii remark
ing that a very large part OF the increase
has been absorbed ~ the war chests of
European nations, to which source q
withdraw a! hc thinks should be aided from
Si7 900. 600 to $50, 100000 annually
boarded in Eastern countries. Like some
other oil world authorities, Mr. Lloyd
prUb1bly mlnimizes the importance Of the
annual absorption of gold in the arts
which. up to 1893 or 1924, many ecoDo'
nists regarded as equivalent or nearly
SO. to the average annual production.
When we consider the several causes
operating 70 crea te wide divergence be
tween the amount Of gold in one form or
anctner in the hands or mankind, and the
actual aggregate in free use for currency
purposes. we do not see any reason 10
wonder that gold coin should lave
/ purchasing power double that possessed
! by it before tie dcmonetization OF silver.
when that conspiracy asainstti eprosperity
Of civilization was accomplished, the cur
rency resource of the commercial world
| was cut in half: practically reduced from
! $4,000, 100000 OF money in use, and pos
sessed % full debtp paying power, 20 S4,-
! 100000 600. If such a thing We're pos
/ sible, v could conceife thata sudden addi
J tion 90 the supply OF gold, amounting to
! the difference in money volume ccasioned
/ by silver demonetization, might reduce the
/ purchasing power OF the yellow metal 10
4 the level that il occupied when it wa one
OF the raoney metals and not the only one.
In the absence OF such a possibility, and
while the gold debts OF America and other
nations have been increasing with far
greater rapidity than the widest dream
Of present ar future gold production, We
do not see how Mr.. Lloyd, or any other
1 writer on economics, can fan to under
sand exactly that reason for continual
enhancenentfn the exchange value OF gold.
We are satisfied that the philosophy and
unhappy meaning Of the upward movement
are not concealed from thinking people
either here, in Great Britain, or On the
Continent. BimetallstiC sentiment has
grown enough In the United Kingdom to
become the issue in a parliamentary elec
ton in anca shire the other day, ami settle
It favorabIy 70 a bimetallist candidate.
There is plenty OF evidence that it only re
quires affirmative action in favor of silver
in America 10 bring resurrection Uf the
Latiou bimetallic union. There were plenty
Of indications in our elections last week
C. show tho Government that silver is not
dead issue il this country, and that pre-
par4tio IS might as well be made TO meet
the Inevitable and the sooner the better.
The present unjust and oppressive pug
chasing power Gf gold is not to last forever.
It = devil which the producing classes OF
all civilized lsuds are coming 10 know
by the AK and the day of its downfall
is written in tile book Of fate.