The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-04-01
BUT FEW LEFT.

The adoption Of the gold standard by
Japan, following the similar course Of
Chile and, later, Of Venezuela and Rus
STA, leaves but few Of the commercial
nations with either silver or paper
standards. On the Western continents
the Central American republics, Ecua-
dor, Colombia and Peru are the only
remaining silver standard countries
Argentina is slowly crawling up out Of
her paper debauch in theories of POpu-
list finance to the gold standard, but
exchanges are still made in depreciat-
ed paper. Everywhere the economic
law that impels men to adopt the
means that will accomplish their ends
with the least expenditure Of effort, the
same law that has made ours distinc-
lively the age Of inventions to save
labor and expedite production, forces
the adoption of gold as the standard
for the sole and simple reason that it
carries the greatest volume of values
in the least space. Precisely analogous
is the substitution on the farms Of the
self-binder for the cradle or the drill
for the sewers sack and harrow.
Japan, youngest Of the old peoples
feels the universal impulse and obeys
it,
While later adviceS from Japan are
that parliament has adopted the plan
of the ministry, they are still so meager
that but little more is evident than
that she has pursued the only path
which would not inf1ict gross injustice
and great hardship on her pepole. When
a deprecated currency has been long
in use and values have become adjust
ed to it, to put the value Of the actual
standard into the nominal standard,
whether it be silver or paper, results
inevitably in the increase of all debts
by the relative fall in prices, and the
actual increase in the rate of interest
on all loans. This was our experience
between 1865 and 1875 when the plan
adopted injected value into the green
back. It was the reverse process of
the method adopted in 1894. when we
went to the gold from the silver stand
ard by reducing the weight Of the gold
coins Chile was more just to her debt
ors when, two years ago, she reached
the gold standard by adjusting the gold
coinage to the deprecated currency.
and Russia, semi-barbarous as she Is
supposed. has reduced the weight of
the new imperials to correspond to the
value of the paper ruble and fixed the
relative rates Of the old coins to the
new and to paper.
Japan makes the gold unit Of value
equivalent to the present silver yen,
about half its former value, thus Civ
ing the prior coinage of gold the same
exchange value 1t had when it was at
a premium, causing no disturbance in
prices and no increase of debts or in
terest rates. Gold coins were not in
circulation, the premium having driven
them into the list Of commodities. The
reduction in their weight of one-half
brings them down to the level of the
silver currency and makes them again
media of exchange as well as measures
OF value. Debts can be paid in coin of
one or the other metal, and gold and
silver will be indiscriminately used in
purchases. The creditor gains no adj
vantage. The debtor suffers no loss.
This IS justly styled 1.-The natural meth
3D." and prevails where selfish interests
do not control the action of govern
ments.