Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1899-03-24

Scarcity of the Precious Metals Indicated
by the Volume of Credit Money In Cir
culation- During the Last Five Years Ev
cry Gold Standard Country Has Had q
Financial Panic. While Every Silver
Country Has Prospered.
In order to show what great influence
powerful nation can exert in estab-
fishing the equal value of the metals
an important fact to be borne i'll mind
is that there is now and always has been
a shortage i'll the precious metals. This
is demonstrated by the fact that govern
ments, either through their treasury
departments or their banking institu-
tons, have been compelled, by reason
of the lack of gold and silver currency
and consequently of full covered paper
money. to issue substitute thereof in
the form of uncovered paper currency,
called credit money. No nation would
undertake the issuing of money based
upon the general credit of the govern
ment or permit banking institutions to
issue such money if there was not an
imperative necessity for 4 greater circu-
lating medium. Consequently the total
amount of such uncovered or credit
money in the world indicates the exist
ing shortage of metallic money. We
know that there is in existence in the
world at the present time, according to
the report Of the treasury, So. 500, 500, =
600 Of such uncovered or credit money.
With such an enormous shortage in the
precious metals you can readily see
that a powerful nation would have
much greater influence in establishing
their parity Of value than if there was
an abundance or an oversupply Of the
same.
If knew but ono fact-namely. the
condition of gold and silver standard
countries Of the world for the past five
years. would know that the cause of
the depression in tho United States for
that period was duo to tho gold stand
ard; that it was duo to the greatly
increased demands made upon gold in
1898 and 1892 by the closing of the
India minis to tho free coinage of silver
and tho attempt to establish the gold
standard in that country. by the large
purchases Of gold for the war chest by
Russia, by the efforts Of Austria to re-
sume specic payments i'll gold and by
the offer Of our government to redeem
all the treasury notes issued under the
Sherman act in gold.
Every gold standard country in the
world, whether situated on this CONT
nent or ON the other, whether in the
nOrtern hemisphere or the southern,
ever since the closing Of the India
minis has been in the throes of finan-
cial panic having the same trend of
falling prices that prevailed in this
country, and that fact existed irrespec-
tive as to whether in those countries
there was high tariff or low tariff.
On the other hand, every silver stand
ard country in the world, whether
situated on this side of the water or on
the other, whether north or south of
the equator and whether it has high
or q low tariff, is today and has been
Tor the past five years, compared to its
former condition, enjoying a marvellous
degree of prosperity. BY this statement
l am not saying that tho Mexican is
equal to the American, and l must say
that the man who Uses the statement,
"Do you want to Mexicanize American"
does not know the meaning or import
Of an argument. We could with equal
propriety say, do you want to Turkey
ize American" for Turkey has the gold
standard. and I am willing to contrast
tho civilization Of Mexico at any time
with that of Turkey, and am willing
further to contrast the payment of
wages in Mexico with not only those
paid in Turkey, but also those paid in
any European nation. I might further
say, "Do you want to Egyptianize
American" for Egypt has tho gold stand
ard.-John F. Shafroth in Democratic
Magazine.