The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1898-02-18
AN OBJECT LESSON OF THE BlIGHIlNG
EFFECTS OF THE GOLD STANDARD.

Wherever the influence OF EhSlah'
and Germany dominate, the gold sCanu
ard is adopted. 1t is followed AWAY
and everywhere by falling prlces' up
prcciotion of money, hardships amoni
The masses, and general depression II
trade. The result of Englands en1orc
ing the gold standard III India brough
srcb di.sa ster as that country has no
known. Not O great while ago Japal
was induced to adopt the gold standard
Il ms shown wonderful progress in al
lines and was ambitious to become
like the great European countries. IT.
ministers abandoned bi-metallsm anC
nut its finances on the single golt
basis. What was the result?
Jill Shinpo, an influential newspaper
published i'll japan says:
I'VE can speak only in gloomy
terms of the year just past. Com
mercial affairs and political affairs
reached their lowest depths of de-
preston and mismana cement. The
llllOuuNIAOiI VI GlIC gnu cAAhohiN
proved Il complete failure. 1t was to
have opened the door to an inflow of
foreign capital, thus succOring the
distress of the industrial classes and
producing an appreciation in the
price of public securities. But for
eign capital has not come in, neither
have public securities appreciated.
On the contrary, we have seen an
ever-increasing prepOnderance on the
side of imports, a corresponding out
flow Of specie. and steady fall in
the price of bonds. Nor is this all.
The effect of the decentralization
of silver has been fatal to the most
promising of all Japan's industrial
MISREPRESENTATION spinning. Its
chief market has been closed against
it. and the prosperity that distin-
guish it at the close Of 1896 was re-
placed by adversely at the end of
1897"
Greater Japan" published in both
English and Japanese one of the mos
influential papers published in Japan
says:
1.-The adoption of the gold standard
is the worst mistake ever committed
by the government in the long histo-
ry of the thirty years that have pass
ed since the present meijiera began.
The Matsukata ministry, however,
must bear the full responsibility for
it. The prospect which the coun-
try had of still further developing
her industries, owing to the depre-
citation of silver compared with gold
has now been ruthlessly thrown a.
way Our trade with silver-using
countries has already been greatly
injured. In China, Corea and the
strait settlements, where at one time
Japanese products found a good
market, and were rapidly eXpclling
foreign goods, Japan is now losing
ground and is likely soon to have
little footing left. Many of the fac
tories in the western part of Japan,
are closing or only running ON half
fine"
Not only do these papers speak in
these terms Of the disastrous effects OF
the gold standard. but a professor in the
Kelo University, writing to the
Boston Advertiser, under date of Janua.
ry 18th, says that these two papers ex.
press the sentiment of the country We
quote:
will you permit me to state that
the almost universal feeling of the
Japanese, as expressed in the news
papers. is that the adoption Of the
gold standard was a great mistake.
1t is a general custom in Japan for
newspapers to give n review of the
years events at the beginning of
each new year. In these reviews
that have just appeared there is
general condemnation of the gold
standard. 1t is acknowledged that
the financial situation in Japan is
very bad compared with that of
year ago. Public securities have fall
en-, railway and Industrial shares
are very low. Many new undertake
ings have stopped for want of funds,
but chief of all, the export of cot
ton yarns to China is at an entire
standstill. 1t is generally confessed
that this closing of the Chinese
market to Japanese yarns is due en-
tirely to the new gold standard of
japan"
Jrst one year ago the Japan papers
were full of the prosperity of Japan, the
growth of it's manufactures, and the eX-
pansion of its trade. When it was al
lis zenith, the money changers, by glow
ing pictures of securing outside capita
and the increase in enterprise and wages
secured the adoption of the gold stand
ard.
The result is the best object lesson
the world has had in this decade OF the
blighting effects of the gold standard
1t will lie found, We dare say, that the
money lenders have prospered, the idle
hoarders Of idle wealth have increased
their holdings, trusts and syndicatcs have
increased. But the industrial life OF
the country, its trade and the activities
that touch all the people have been in
jurcd and i'll some instances destroyed