The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-07-13

| as to the fact of the depression and
| that it began contemporaneously with
! the change of the money standard In
| 1873.
| 1t is, therefore, illogical and unsound
! to claim that a temporary revival
| proves the beneficence of the gold
| standard and that silver should be per-
manentiy discarded as a money metal.
| Especially is this true when the alb
| normal causes are so clearly visible.
First there were two consecutive crop
| failures abroad, leading to a tremend-
Gus demand for American breadstuffs.
| This created an immense trade balance
in our favor while the Dingley tariff
increased that balance by shutting out
legitimate imports. Then came the
Spanish war, involving direct expend-
iture by the government of perhaps
$3.50, 900 900, which for the time being
had the same effect as a direct addition
to our currency of that sum in new
money. The exigencies of the war took
about 100000 men into the army, thus
relieving in some measure the pressure
upon the labor market.
All of these things were calculated
to better the industrial and financial
situation for time, but it is perfectly
obvious that they We're so far out of
the ordinary as to constitute a combi-
nation of circumstances almost phe-
nomenal, to use Mr.. Frewen's express
sion. 1t is noteworthy in this connec-
ton that every visible sign of better
times Is directly in line with the eco
nomc argument of the bimetallsts.
Wherever a substantial improvement
has appeared it has manifested itself
by a rise of prices. which means
cheapening of money, the very thing
that the gold men deplored and which
they insisted would ruin the country
especially the poor man.
But can the improvement last? Mr..
Frewen thinks not, and many profound
students agree with him. He points to
the fact that our exports are even now
diminishing, which means smaller
trade balance and possibly an export
of gold instead of an import.
To those who have followed the course
of events it is clear that a considerable
export of gold would change the whole
aspect of the business situation in the
United States. 1t is a startling cir
cumstance that with balance of about
5000, 000,0 900 in our favor in 1898 we re-
ceived only 10000, 900 in gold. The
remainder went to meet interest
charges, dividends payable in Europe,
freights to foreign shipowners, eX-
penses of American travellers and the
like. Should our trade balance fall off
a couple of hundred millions we shall
almost certainly be again confronted
with heavy gold exports, a state of af-
fairs which invariably throws Wall
street into a cold sweat. During the
last two weeks there has already been
some export of gold, showing that the
movement this way has at least re-
ceived a check.
1t should be evident that the trade
conditions of the last two years cannot
be permanently maintained. The drain
of gold from Europe must inevitably
lower prices there and increase exports,
which, of course, means lessened exports
from this country and lower prices here.
1t is a most serious indictment of the
gold standard that we can be prosper
Gus under it only whey conditions are
unnatural and other countries in dis
tress. The silver issue still lives.