Clinch Valley news. [volume] (Jeffersonville, Va.) 18??-2019, 1897-07-02
Why SHE rLoPPEp.
European Money Lenders at the Dot
tom OF Japnn's Monetary Change.

Much wonderment has been ex-
pressed that Japan should depart from
q monetary standard upon which sho
has made unexampled progress. It is
not a whit more strange than that sill
YER should have been demonetized in
the United States or In Europe. There
has never been an attempt made to
show how the use of silver was doing
any harm. There were some theoretic-
al objections to the bimetallic princi-
pie, but they amounted to nothing more
than technical bubbles. 1t was claimed
that 1t was impossible to maintain two
metals at exactly the same value, and
that there were bound to be small
fluctuations. But IL we concede this
TO be true (Which we do not) II is q con-
tention which fails to prove the sub
stance 81 the Issue. There might be
small fluctuations. and it might cause
some inconvenience. particularly In for
eign exchanges. But these would be
utterly trivial compared with the In
dcfensiblo wrong and injury which
must follow the abandonment of one
of the metals entirely. Mr.. Sherman
admitted this. very frankly. in his
Groesbeck letter.
But the fact Is that when tho general
demonstration of silver began in En-
rope, and actually took place in Ameri-
ca, Its economic effects were not con-
sidered by the great body of the people
on either continent.
If, when Germany took her first step
In that direction. the prime movers had
etnn1 N and Inn1n roll TINT &c
was to enhance the value OF gold, di-
minish the value of commodities and
property In general, thus increasing the
burden OF all debt. the measure would
probably not have received dozen
votes In the German parliament. If it
had been generally known that the de-
monetization of silver would be fol-
lowed by such n fall of prices that the
money value of our great staples would
be reduced one-hah In "a years, does
anyone suppose that the United States
would hnve been n party to the act?
We all know better. The truth is that
even among business men" very few
had clear conception of what the cf-
feet would be. They had been In the
habit of letting the great bankers con-
troll the finances of their respective
countries. There can be no question
that the characterization of silver was
mainly brought about by tho latter.
OF course, they would not declare that
they wanted the change made In order
to enrich themselves at the expense Of
others; and so tho subject has been OBJ
scured by mysterious talk about the
par OF exchange" and the superiority
of gold over silver rs measure OF
value, all of which is mere by-play.
Tho moneyed classes have always fn-
vored the policy of restricting the
money supply, go as to increase the
value OF their holdings; and such Ia the
direct effect of demonetizing one of
the precious metals. In an article on
the gold standard In Japan the position
was taken that 1t had been brought
about by the creditor classes regardless
of tho effect upon the Industries of
tho country. Strong corroborativo evil
dence of the soundncss of that view Is
now furnished by the London Econo-
mist, ono of tho most pronounced and
uncompromising advocates of the gold
standard published anywhere.
1t not only shows what the change
actually Is. giving translation OF
the law, but II shows why It was
done. Japan was prospecting with her
silver money, and there was nothing
In the business or Industrial situation
to make such change necessary. But
1t was thought that If Japan placed
herself upon the gold standard she
pnlI11 borrow H.,
abroad. l. e.. In Europe.
The entire defense of the gold stand.
ard ESQ far as there is anything at all in
it) revolves around the idea of borrow
ing money. 1t Is assumed that mon
etnry system which makes II easier for
n government to negotiate loan Is the
better system, no matter what the effect
mny be upon the welfare of the people
rs body. a moments thought will
show the utter fallncy of such claim
AS matter OF course a man who has
money will lend It more readily II he
knows that he will be paid in money
of higher value than that which he
loaned. But this very circumstance
proves that rise In the value of money
must be O direct gain to the money
lender; and 1t Is perfectly obvious that
what he gains In this way somebody
else must lose.
The value of gold is constantly ris-
Ing. For more than 20 years 1t has
gone up. that Is, increased In purchas.
ing power, something like four per
cent. year. So that when man
loaned money at six per cent. ne. In ef
feet, collected ten. He could lower the
rate to four per cent. and still the up.
ward movement of the money In which
he was paid made 1t In substance loan
at eight per cent. This Is the reason
and It Is the only reason. why men are
willing to accept a lower rate of inter.
est on bonds payable in gold. They
more than keep even by the rise of the
gold. This Is also the chief reason why
in every country where the gold stand.
ard has been adopted the money lenders
have added enormously to their wealth
while the producers. selling their prod.
ucts for less and less money, have
grown poorer with each succeeding