The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-07-16
MAY BE A GOLD PANIC.

The reported discovery of rich depos-
ats of gold in the country drained by the
Yukon river, if true, is but one more of
a long series of rich finds following up
on the cheapening of silver and the con-
sequent enhanced value of the yellow
metal When silver had access to the
mints the efforts of seekers after the
precious metals were divided between
the two. Since gold has become the
sole money metal for large portion of
the world, it has also become the sole
object of search by the prospectors-
The result is that the production of
gold has increased enormously while
the output of silver has decreased, until
in 1896 the two metals were mined in
exactly equal quantities, measured in
dollars and cents-$215 900, 900 of each.
This is the first time the output of
gold has exceeded the output of silver
in any one year since 1880. Previous to
that period the average annual produc-
ton Of gold had exceeded that of silver
for 40 years. This year promises to
again show an excess of gold.
Under such circumstances it seems
fortunate that the subject of an inter
national monetary conference should be
found so we'll to the front with so fiat
tering prospects for its being held as are
indicated by the latest dispatches from
London, where Senator Wolcett's COM
mission has just held a joint meeting
with representatives of France, India
and Great Britain.
Perhaps nothing could be of greater
aid in the effort to restore silver to
coinage than a gold panic, such as at
tackled Europe after the almost stimuli
taneous discoveries of gold in Califor-
mia and Australia 80 years ago.
So great was the alarm at that time
over the apparent probability of
cheapening of gold that in 1850 Holland
demonetized the gold 10-f1orin piece and
the guillaume. Portugal prohibited
any gold from having current value ex-
cept English sovereigns. Belgium de-
monetized it's gold circulation. Russia
prohibited the export of silver as the
metal likely to become the very stay
and staff of the national existence. Aus
tria, then on paper basis, thought the
cheapening of gold offered a favorable
opportunity to come to a metallic basis
and called the German states to meet
in a monetary conference at Vienna.
The other states feared the depreciA> zen
of gold and insisted on the single silver
standard The most that Austria could
do was to secure the coinage of gold
crowns as trade pieces, like unto our
trade dollars.
In some countries the shop keepers
sought to secure trade by Offering to re-
ceive gold coins at par. In England it
was suggested that life insurance COM
panies should put their business af-
fairs on a silver basis, and in this
country the suggestion was actually
followed by some companies, and they
are receiving part of their income to
this day in a certain number of ounces
of fine silver-taking their pay in dol
lars which are really and truly only so
cent ones and not called so for cam
paign purposes.
During all this time France stood
firm, taking in all the gold offered-pay-
ing out all the silver asked-preserving
bimetallism and saving gold from uni
versal demonstration until the fright
wore away. The panic began to abate
ahollt 1880