Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1897-05-27
AT THE BOTTOM OF IT.
WHY JAPAN CHANGED HER MON
ETARY SYSTEM.
The Money LOanors Of Europe Backed by
the Gold Power OTthe World BrOught
Abo, I the Change In the Monetary sys.
tenn OF Japan.

AbO, t the Change In the Monetary sys-
tenn Of Japan.
Much wonderment has been express
ed that Japan should depart from
monetary standard upon which she
has made unexampled progress. 1t is
not 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 theoreti-
cal objections to the bimetallic prinei-
pie, but they amounted to nothing
more than technical bubbles. 1t was
claimed that it was impossible to main
tain two metals at exactly the same
value, and that there were bound to be
small fluctuations. But if we concede
this to be true (which we do mott it is
a contention which fails to prove the
substance Of the issue There might
be small fluctuations, and it might
cause some inconvenience, particularly
n foreign exchanges. But these would
be utterly trivial compared with the
indefensible 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 the gener-
al demonstration Of silver began IN
Europe, and actually took place in
America, it's economic efforts were not
considered by the great body Of the
people on either continent.
If, when Germany took her first step
in that direction, the prime movers had
stood up and declared that its purpose
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 a
dozen votes in the German Parliament
If it had been generally known that
the demonstration of silver would be
followed by such a fall of prices that
the money value of our great staples
would be reduced one-half in twenty
-four years, does any one suppose that
the United States would have been a
party to the act? We all know better.
The truth is that even among "busi-
ness men" very few had a clear con-
ception Of what the effect would be.
They had been in the habit Of letting
the great bankers control the finances
of their respective countries. There
can be no question that the demOnetl-
zation of silver was mainly brought
about by the latter OF course, they
would not declare that they wanted
the change made in order to enrich
themselves at the expense of others;
aud SO the subject has been obscured
by mysterious talk about the par OF
exchange" and the superiority of gold
over silver as a measure of value, all
of which is mere by-play.
The monied classes have always IA
vored the policy of restricting the
money supply, so as to increase the
value of their holdings; and such is the
direct effect of demonetizing one of the
precious metals. In the article on the
Gold Standard in Japan, in No. 2 of the
National Bimetallist, the position was
taken that it had been brought about
by the creditor classes regardless of the
effect upon the industries of the coun-
try. Strong corroborative evidence Of
the soundness of that view is now fur
nished by the London Economist, one
of the most pronounced and uncompro
missing advocates OF the gold standard
published anywhere.
Particular attention is invited to the
Economist article, which is reproduced
in this issue. 1t not only shows what
the change actually is, giving trans
lation of the law, but it shows WHY
it was done.
1t will be noted that it fully confirms
our statement that Japan was prosper
ing with her silver money, and that
there was nothing in the business or
industrial situation to make such a
change necessary. But it was thought
that if Japan placed herself upon the
gold standard she could BORROW
MONEY MORE READILY ABROAD,
l. E. in Europe.
The entire defense Of the gold stand
ard $50 far as there is anything at all
in it) revolves around the idea of BOR-
ROWING MONEY. 1t is assumed that
monetary system which makes it
easier for government to NEGOTI-
ATE A LOAN is the better system, nc
matter what the effect may be upon
the welfare of the people as body. A
moments thought will show the utter
fallacy of such a claim. AS matter
of course a man who has money will
lend it more readily if ne knows that