The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-03-31
DEBT AND CREDIT NATIONS.
Mr. Moreton Frewen Writes About Sill
.''i yer and the Fall Of Prices. -

~ yer and the Fall Of Prices.
Editor Of Washington Post: lii this
| mornings cable to the Times Mr.. Small
| ley reports from Washington an inter-
esting interview with the President Mr.,
| Smalley's hitherto mistaken conviction
has been that the st. Louis bi-metaIlie
"plafik" was dishonest-a mere vote
catcher. His interview with the presii-
dent has clearly convinced him that the
President, at least, is iii earliest in his
desire to secure an international settle
merit aoA 4.'-'''. !" -
The Times correspondent i to be com
graduated on his discovery il he perse-
yeres he may find in the public life Of the
United Seates other honest men. The
view has been sedulcusly fostered by
New, York critics in the london press
that half the American nation has struck
its flag to anarchy, and that the, other
half won the day last November by j
platform so tricky as to involve, in classie
phrase. sparty peffds1 and party fdslon-
or Mr.. Smalley's present voyage OF
discovery. from Manhattan Island TO the
little known District of Columbia, y
certainly wortlH While. If it has carried
to his mind the conviction that the leader
of a party, who declared for bi-metalfislf
before the election does not stand d re-
vealed mon0-metallist. now that the eleG-
ton has been won.
As to the prospect of an international
monetary agreement, to which many OF
us here have devoted our energies for
the past twenty years. you will perhaps
permit ME to write at some length Look
ing back to the records of the abOrtivs
conferences of the past it seems pretty
clear that those who attribute their fail
ure to England's hostility, know too little
Of the subject to answer the question.
'.but. why should England co-operass!7
Even the, late Iamented Prof. Francis
Walker. | venture to think, did not en-
tirely appreciate EHgIand'sl POSITION Et
was his view-a view which / and mnny
others accepted bee1rse of his, great aE-
thority. that if Amerieai suffered by tire
fall of prices and the loss Of a par OF
exchange" yet Engfrnd suffered ,eveis
more. This view, however. Will net stand
the QUESTION of H-metal-
ism versus gold is primarily a questions
Df debtor nations versus creditor nations.
and it is becoming clear f'y the light of
IS the gamer at the expense Of the debtor.
and is the gamer. too by practically tnes
whole amount of the. appreciation Of
gold-the fall of prices, The truth is.
that the great fan in the price of your
staple exports. such as wheit and COTTON
4 fall which will each year make it lffcr'e'
difficult for you TO. pay the interest," on
your foreign debts, without shipping POUR
gold it is this very fail which by gKvfng7
us. your creditor. cheap raw naterlaE ana
cheap food, both secures our manufac--
turing supremacy. and ena bits us toe
flourish Unfortunately as nation, notsltii-
standing the paralysis Of our agriculture,
and of certain other specEtF lndustl'les 81
which have been undermined by the COM
petition, of silver using ASA. l<sr me-
chow the effect of the fall ia prices upola
our creditor relation with foreign couii+
tries Orr foreign loans and investments
AFRO inward of ten thousand million dol
l,rs tbe interest on which Is supposed %
,voraoe 4 per cent. of S40O.OOo,OOO
raar This interest reaches rs IN Tne
form of wheat. cotton. WOOL ana otnei
nroduce Wheat has in the past TeW
,,c.ors fallen more than one-haf.. Trans
iatinc then our entire receipt Of lntefes
into bushels Of wheat il may be SAID ina
instead of receiving 270.0OO.WO btrshel
If wheat as the equivalent of Sfoo,oso,oo
of interest we are receiving, at the aver
age price of the past four years over nv
hundred million bushels. As our tota
consumption of wheat is less than 40
600. 900 bushels year t3oI pounds pc
canita) the fall in prices has gwen us
the form of increased interest on our To-
eisp Investments more than the entn
annual bread supply of our people. 1t
LITTLE wonder then that we refornie'
: 6ohtin. this battle in England make hit
beaaway against those who say l%st
Z ,frna bread than free silver.
Prof. Walker. however, used To- wa
). rs of the possible Insolvency of our deb
4 In,.s bacatlse of the great collapse of q
nrice Of what they produce: but thus ia
!. Inv contrast with our entireforeign loar
- orr LOSSES in Turkey, Greece. and the a
fdaei,tinp have been haaatelle: nor
70 there any real alarm as yet felt.ln Eli
Il lana that the further fall of. prices. "
or involve any extensive liquidation