The Winslow mail., 1899-08-10
The Monetary Problem.
PRICES STILL FALL.
DR.. f. BENJAMIN Andrews on the
Present Morbid Condition of
the Industrial Body.

We see in the fall of prices and the
accompanying danger to business the
true cause of the worldwide movement,
so confounding to free traders, for
trusts and for what we should once have
called inordinate protective tariffs.
These phenomena mark the precise pc
riod, since 1873, during which money
has been swelling in value and goods
losing in value. New South Wales till
1891 ever the free traders firm stand
by) succumbs to this drift. The reason
of it is perfectly obvious. Production
now is eXtra-hazardous and needs shell
ter. When prices threaten or begin to
fall, when stock depreciates upon man
ufacturers' hands, they inevitably
struggle to avert these results, well
coming any resource that can aid. I'm
able to compass their ends otherwise,
they agitate for high tariffs. l unhes-
itatingly avow the conviction that had
prices since the war been stationary or
only slowly advancing, the rise in
United States tariff rates eliminating
in the Mckinley law would never have
been so much as thought of. High pro-
tectionists would have been perfectly
satisfied without any rise and even with
some reduction. The Mckinley rates
have been lowered somewhat, and, if the
change had been preceded by proper
monetary reform, tie reduction might
be permanent and perhaps in little
time, with the approval of all, made
greater still. But l fear that it cannot
be permanent. Unless monetary reform
comes soon, the tariff which the demo-
Gratis have been at such great pains to
give us, will speedily be ripped in pieces
and rates of duty be imposed higher
than those of the Mckinley act. y low
tariff policy can never be established in
these United States so long as gold
alone continues the basis of our cur
rency. By no means all those crying
for highest protection, whether here or
in Europe, believe in protection as
general policy. Many such, in theory,
favor a tariff for revenue only; i. e.,
they would advocate such tariff were
prices stable or rising. Willingness to
subject your country's industries to
normal foreign competition is one
thing; quite another to do so when
your competitors are helped to beat
you by home bonus on expectation,
as is the case with nearly all exporters
from silver and paper lands to-day. In
France these Opportunities" protec-
tionists are a powerful and growing
party. Their logic is as yet imperfect
ly understood in this country: but men
are mastering it more and more, and it
will insure to the protectionist ranks
armies of recruits in every congress
ional and presidential election till gen.
eral prices cease falling.
Such is the diagnosis of our present
industrial disease. In my belief true
cause of morbid conditions in the body
industrial has been laid bare. The ex-
trusion of silver from service as full
money greatly reduced the amount of
the worlds money available for ulti-
mate quidatiOn-reduced it absolute
ly, and reduced it far more relatively
to those needs for fundamental money
which rise from the growth of popu-
lation and business. A distressing ap-
probation of money per unit has ell
sued, meaning tremendous drop in
prices. This disastrously handicaps
all production. 1t does not entirely
prevent production. Nothing short of
killing of the race could do that. But
it renders production indefinitely feeble
compared with what it would be but
for the handicap. The world needs an
addition to its fundamental money; not
more bank notes, not more token coin
age, not more full legal tender tokens
like our silver dollars and the French
ecus, but more of the sort of money that
can do everything that any money can
do. We need, L say, greater bulk of
money that is exportable, good in ulti-
mate settlements, suitable for bank and
government reserves. a stop must be
put TO mems ubiquitous rush and clutch
for gold. The passion for boarding
must be cured. This can be done only
by ab3lishing the legal primacy of
gold. That is the proper prescription
for our patient. The only question is
whether he can be induced 10 try the
medicine. My belief is that the rehab-
iitation of silver full money by a few
of the great commercial states of the
world would instantly bring health. If
so that course is most desirable.-E.
Benjamin Andrews.