The herald., 1898-09-23
Production and Exchange


A German philosopher, Frederick En-
lgels. speaking Of the present gigantic Inn
provements in machinery used In all lines
to lessen the cost of production. says: 1.-THE
mode Of production rebels against the
mode OF exchange" To the most careless
observer It must be apparent that the i'm
provements in the method Of exchange. II
any. have not kept pace with the improved
methods Of production.
In former times, when most Of the work
was done by hand and by a lagre number,
the greatest suffering of the masses &C.
CURED when there was the gratest scarcity
of product. Now. however, 1t seems that
the greatest distress. suffering and pow
erty occurs when we have the greatest
abundance, when commerce is blocked,
whan the markets are most verstocked and
nothing Is good collateral and cash be-
comes scarce or stringent
To regulate our system OF exchange, of
distribution equitably and SO as 10 make 1t
work In harmony with the improved sys-
tenn Of production Is the great industrial,
economic and social problem of the hour.
1t is q problem which demands solution
at an early date; otherwise that distress
and suffering must continue to grow more
acute and end in disaster, perhaps revolu-
ton.
Ono Of the solutions suggested by those
who handle products and by those who
have money in quantity Is to have a; a
basis for all circulation, gold, nothing but
gold. The contention is by such thinkers
that thus the people would have a sound
money, honest dollars. and SO in exchange
would receive for products. If not so much,
safer equivalents of larger purchasing
power. The proposed plan of solution has
BEEN tried. and yet for the producing class
we find no improvement
Prosperity seems only to have visited
those who have much. To those who have
little or nothing 1t is yet stranger The
congestion is not relieved perma nertly in,
deed, not lessened, except from the fall
ure of wheat crops in Europe and South
America When again crops abound In for
eign lands and our own harvest is abundant
we may reasonably expect under the gold
standard policy a greater dechre In prices
than would occur under bimetalism. for
the reason that gold. having by the In
creased demand upon 1t, become compare
lively more valuable. 1t would require more
product to get given number of ounces
of It,
The shortening, contracting the volume
of money by the disuse Of one Of the
precious metals-siver-as a money Of ul-
innate payment, by depr!ving 1t of Its debt
paying power. has sharpered the rebellion
Of the mode Of production against the mode
of exchange: has given greater advantages
lin the struggle to those who hold the only
debt-paying commodity - gold - against
those who have only their product or mus
Gle.
The fact that the purchasing power Of
tho gold obtained in exchange for produc,
or labor is greater does not seem to help
the "house of want" The power obtained
by those who have In hand or under con-
troll the medium Of exchange is exercised
economically by the creations Of trusts and
syndicates TO increase the earning power
of gold invested, to fix prices, not only for
which men shall work, but to fix prices
which they shall pay for what by their own
labor they produce.
The stringency now so keenly felt by
producers a, | industrials Of all kinds has
been tempered somewhat, not only by the
increased price obtained for products due
10 the shortage in Europe but by the IN
creased output of gold and the increased
waste and absorption due to the war with
Spain.
The increased output of gold, however
has not kept and cannot keep pace with the
CONSTANTLY increasing demand for Il under
the gold standard. The war is how ended
The waste must be paid Cor. The fact that
nearly all men who think, take comfort
and congratulate themselves upon the in
creasing output Of gold, Is significant and
tends at least to show that 1t is desirable
20 have made up the deficit In volume of
primary money caused by the disuse of sill
yer.
The hope entertained two years ago that
bimet allism would be secured by internal
io,nal agreement has been dispelled. The
pledges made by our Republican friends to
promote bimetallism by international agree
ment though doubtless honestly made
have not been and cannot be fulfilled.
The interests of the great producing and
labor.ng masses in this country demand
with as much emphasis today as they did
two years ago that silver be admitted to free
coinage. Those interests demand that the
mode Of exchange be made to harmonize
with the mode OF production
W. E. SHEPHERD.
Ventura CAL, Sept 20, 1895.