The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-11-25

Means Lower Wages.
Washington, Nov 24-In his annual
report, Mr.. George F. Roberts. director
of the mint, says: The most important
events Of the fiscal year in the world
Of government finance have been the
Contamination of the long planned re-
sumption of specie payments by
Russia in gold, the reorganization of
the monetary system of Japan, with
gold as the standard, and the refusal
OF the British government to cooperate
with the governments OF the United
Stantes and France in an effort to
establish bimetallism by international
agreement.
The gold coinage of the world in 1897
was the largest recorded, amounting in
value to $437, 719, 342, against $193,S99,
BIT, in 1896 of the former sum $l4b,bZz,-
,k1l94 was recoinage ana approximately
= 1921, 0s7 ,14S was the net addition to the
stock of gold coins. The principal
coinage was by the United States,
Great Britain, Russia, Germany,
Austria-Hungary, France and Japan.
The extraordinary coinage Of the year
is accounted for by the preparations
Of Russia, Austria Hungary and Japan
for their monetary reforms. In the
case OF Russia, particularly, gold,
which has been accommodating for years,
much Of II in bars, was passed through
the minis to prepare it for circulation.
The completion OF Russia'S plans for
monetary reform and the opening to
the uses Of commerce of her great gold
reserve, Systematically gathered year
by year, until it is the greatest single
hoard of treasure the world ever saw,
in itself notable The
development of Russia, her position as
an exporter of breadstuffS, her policy
of developing home manufactures, VIII
all tend to protect her stock of gold
and make use for more, but her own
gold production is increasing, and I'M
less she is about to enter a period Of
unprecedented activity and develop
ment, seems likely TO supply her needs.
GOLD STANDARD ARGUMENTS.
Throughout the world, among ali
peoples, who are sufficiently civilized
and ambitious TO have international in
tercourse, there is manifest a desire to
bring their own currencies into definite
and stable relations with the money of
the peoples with whom they trade. The
exporter desires that the money with
which he buys at home and the money
with which he sells abroad shall have
a common unit Of value. The manu-
1dCluItE N llO - CDzllRSNii1. IA 1Ot Et-.Al
markets desires that the money with
which he buys raw materials and labor
al home and the money in which he
must quote prices abroad shall have
n relation to each other upon which
Pc may rely and calculate. If the
Ge4onetary systems of these countries
have no common unfit each nation,
in ignorance or nisled independence
prefers IAN independent system of mis-
oWn"-they viii inevitably vary in
value to each other, and the profits
of the International transaction we are
considering are subject to these varia-
lions. Such variations are, therefore,
a barrier to the trade between the
countries.
1t was to escape from such fluctua-
tons Of the Russian currency, which,
in 1892, reached SO per cent, and in
1891, IS per cent, that the Russian gov
eminent has fixed its paper money at
the gold standard. For the same
reason, Austria-Hungary and Japan
have lately done likewise. For the
same reason India closed its minis to
the unrestricted coinage Of silver and
has been struggling since TO hold its
rupee at the fixed value Of 16 pence.
It is for this reason that even Peru,
with its comparatively small foreign
trade, has closed its minis to the I'M
limited coinage of silver. 1t is for
this reason that the government of
France, while friendly to an interna-
tional agreement upon the bimetallic
money standard, will not entertain any
proposition that involves a possible
separation Of her own currency from
the standard used by the other i'm
pertant commercial nations of the
world.
The enterprising peoples Of the world
are not voluntarily assuming or re-
manning under conditions which put
them at a disadvantage in the keen
rivalry that statesmen find in every
market. The enlightened judgment of
tire time condemns such a meaningless
All burdensonne restraint upon the eX-
Changes.
DOMESTIC AND FOREIGN PRICES.
Nor is there any merit in the plea
sometimes made that. inasmuch as
most Of a counury's business transact
tons are domestic, and only a small
percentage of them International
therefore the relations of its money
to the money Of other countries is OF
equally small Importance. The truth
is shat prices in all domestic sales are
related to prices in international trans
actions and cannot be separated from
them The values of all goods that en-
ter into the common consumption OF
mankind are international, and cannot
be affected by. monetary legislation
Legislation can alter the value OF
local currency, but the owner of goods
of worldwide demand simply raises OF
lowers his price to correspond with the
coinage value of the money.
Clear as these principles seem to be
and attested by the unvarying re-
sources of ali countries, there are those
everywhere who protest against al
measures to enforce them. Certain
narrow objections and sophistical doc
trines become familiar Some assert
that the depreciation Of country's
money has a good effect by stimulating
its exports. The shipper sells his prod
ucts abroad Tor gold, converts the GOLD
into the currency of his country and
as the latter declines in value OF
course, he gets more of it. The net
gain depends upon his opportunity tC
work this deprecated currency off or
somebody else atits old value In some
countries the exporters claim to have
pleased, and pronounce it a good thing
is said, for instance, that in India
While the prices Of wheat and tea ii
silver currency have advanced, the
PLANTERS can still hire labor at abou
the same wages as before. Evidently
If the wage-earner consumes wheat anC
tea he is not sharing the good thing.
SILVER AND WAGES.
It is said that in Mexico, manufac
tuners and planters have enjoyed pros
Derity by reason Of the rising prices
Of their products in silver, while swage,
have advanced but little. The question