Iron County register., 1898-12-01
The Cause OF Free Silver.
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A DARK OUTLOOK.


An English member OF the Legislative
council, Hong-Kong. China, gives in an
English publication the following re-
marks on the way the gold standard
works in China and the east, and how,
by that working, the countries with
single money standard are placed at
disadvantage. This country is antie-
ipating a share CT the increased COM
merce which must inevitably result
from the reconstruction OF China, and,
with England, is equally concerned in
eworkings of the gold standard in the
far east.
Let me explain that silver viii still
employ the same quantity of oriental
labor as it did 20 or 80 years ago The
inadequacy of our monetary standard
therefore allows eastern countries to
now employ at least 100 per cent. more
of labor for given amount of gold
than they could do 25 years ago. To
make this important statement quite
clear allow me to give the following ex-
ample. In n1S70 ten rupees was the equiv
s.lent of one sovereign under the joint
standard of gold and silver. and paid
20 men for one day. To-day 20 rupees
are about the equivalent of one sover-
eign, so that for 20 rupees 40 men can be
engaged for one day. instead of 20 men,
as in 1870. Against such disability
British (nor American) labor cannot
possibly compete
I'm oriental countries silver viii still
pay for the same quantity Of labor as
formerly. Yet, as now measured in
gold, silver is worth less than half of
the gold it formerly equaled. For ex-
ample, certain quantity of labor could
have been engaged in England 20 years
ago for, say, eight shillings. Eight shil-
lings in England viii now pay for no
more labor than formerly, wages being
about the same, and they have still by
our law exactly the same monetary
value as formerly. though their metal
lie value has, by the appreciation OF
gold, been reduced to less than sixpence
each. The two dollars exactly similar
to the old one can employ the same
quantity of labor as before, but do no
more, yet at the present gold price they
are only equal to four shilliEgs. There
fore it is possible now to employ as
much labor in Asia for four shillings of
cur money, or the equivalent thereof in
silver, as could have been employed 20
years ago for eight shillings. or its then
equivalent in silver. The value of ORR
entail labor having thus been reduced
By upwards Of 55 per cent. in gold
money compared with what it was
formerly. it will be able to produce
manufactures and commodities just SO
much cheaper than the labor in gold
standard countries. Therefore. unless
our monetary law is amended, or unless
British labor is prepared to accept a
large reduction of wages, British in
dustria1 trades must inevitably leave
British shores, because their products
will be superseded by the establish
ment of industries in silver standard
countries"
Mr.. Whitehead might truthfully have
added that the silver standard coun-
tries viii soon not only be prepared to
supply their own needs, but also to in
wade the gold standard countries. For
instance, Japan could sell in England
at prices one-third less than prevail in
Japan; and, by exchanging the gold
money received into silver money. can
lake home to Japan large profits. Thus
the American and European mechanics
viii not only be forced to compete with
the Asiatie cheap and patient labor and
skill, but in addition will be at the disad-
vantage in the competition by reason OF
the difference between the gold and sill
yer standards Of financial exchange
The same authority also called atten-
ton to the fact that. from the causes
described, the last four years, our Eng
lish) exports show decrease of 6 54.-
100000 has unfortunately nothing dis
putable about it. The returns of the
81 spinning companies OF Lancashire
for 1894, show an aggregate adverse
balance of All 900. Against this The
increase in the export Of Indian yarns
and piece goods to Japan has been SIM
ply colossal. and the cotton mills at
Hiogo, in Japan, for 1891, showed an av-
erage profit of seventeen per cent. Sir
Thomas Sutherland has said that be-
fore long the Peninsular & Oriental
company may be building its ships on
the Yang tie, and Mr. Whitehead be-
heves that oriental countries viii soon
be competing in European markets.
However much we may differ about pro-
posed remedies, statements like these
from the mouths of experts afford mat
ter for serious refection--Mississipp
Valley Democrat