The Penn's Grove record., 1899-03-03
GOLOANDSILVERIN BELGIUM
An Interesting Letter Sent to a Chicago
Paper by n Distinguished Economist.

MI lhbtKehtlnS LetteF sent w ~ Sh1CltEu
Paper by a Distinguished Economist.
The inclosed letter to the minister of
the United States at Brussels reaches
me from NJ. Allard, the distinguished
Belgian publicist. Coming from a
source free from political bias, it is
likely to interest equally the supporters
of Mr.. Mckinley and those of Mr. Bry-
an, each party being, as we are assured,
equally in earnest to restore silver to
the worlds currency, the methods only
being different:
To His Excellency the Hon. James Currie,
United States Minister, Brussels;
] feel 1t my duty to answer without delay
the letter which you kindly addressed to me
yesterday, but I beg your forgiveness If here
in the country, far from my efice and my ref
erences, I am less explicit than 1 should wish
to be.
follow in my answers the same sequence
which you have adopted In your questions.
First.-The law Of Belgium gives to every
debtor the unquestioned right to pay, at his
option, in gold or silver, whether this d&Dtor
be the bank. the government or a private citi-
zen, native or foreign.
Second. No official estimate exists of the
quantity of money actually in circulation III
Belgium, but this much can be affipmed-thnt
practically no gold Is met with, so that the ma
tional bank, which alone Issues bank notes in
Belgium, never pays gold when these notes
are presented, but always pays silver.
Third.-Atits birth In 1881 Belgium adopted
the French monetary system, based on the two
metals, gold and silver. e., bimetallism.
But about 1881, when the gold mines Of Cali
fornia and Australia produced gold in large
quantities. Belgium demonetized gold and be-
came silver monometallic.
About 1885,, however, business became so de-
pressed In Belgium that the people forced the
minister, NJ. Frere-Orban, to retire and obliged
the government to become again bimetallic,
About 1873 France prevailed upon the Latin
states-ZFranoe, Italy, Belgium, Switzerland
to suspend the coinage of silver, which sus-
pension established here a kind of limping
monometallism. for though silver can no lon
ger be coined the then existing silver coins
continue to circulate within the Latin union,
which union dates from 1885.
Since 1873 a crisis, consisting In a fall in all
prices, exists continually, nor does it appear
possible to arrest its progress, This fall in
prices. r~eacting on wages, is now evolving a
social and industrial crisis.
You ask me why we returned in 1873 to mon
ometallism. limping though it be. l can con
ceive no other reason than that 1t was to
please a certain class of flnanciers which prof
ited thereby-a class supported by theories in
NtubSu huu dSitiluSu ht tuut TINT Dy solne lO
litical economists, notably by members of the
institute of France.
Fourth.-You ask what influence these mon
etary measures have had in Belgium on indus
try and wages. Money, which was already
scarce in 1873, has become still scarcer, and
that fall in prices which was predicted has
taken place. The average fall in the price of
all the products of labor is 80 per cent since
1873; that of cereals over Is per cent. Industry
is no longer remunerative, agriculture is ruin
ed, and everybody is clamoring for protection
by import duties, while our ruined citizens
think of wars. Such is the sad condition of
Europe.
Fifth.-For the last 20 years nc new gold or
silver has been coined in Belgium.
Sixth.-The mint pays for gold 0, 437 francs
per kilo and for silver 220.G francs per kilo,
without any change since 1865, but since 1874
it no longer buys silver. There is thus a mint
price for gold only, but gold is always dearer
in the open market than the purchase price Of
the mint, Accept, NJ. lie Minister, the assur-
ances, etc, ALLARD,
Directeur Honoraire de la Monnaie de Bel
gique, Delegue du Commencement Beige aux
ConfereuX Montaire international, 1882, etc.
Aug, IL, 1896, Translated from the French.)
At my request, NJ Allard has obtained
permission from Mr.. Ewing to publish
the letter. N, reton Frewen in Chicago
Record