The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-09-23
Com.ptroIIer RIageIx ON prosreritr.

y
There will be a general agreement with
Comptroller Iddgely that for the past
few years the country has been in the
enjoyment OF very unusual prosperity.
but when h. states that il is mainly
due TO the firm establishment of the
gold standard. there will be many 10
demur- 1t is not an easy matter to
state with assurance Just what causes
a long season Of either prosperity or
adversely AS "a rule there are various
causes. But if there is any one thing
which is rendered certain by the
worlds economic history il is that the
establishment Of the gold standard
alone is not enough either 10 create OF
maintain prosperity Some Of the worst
financial crashes ever known took place
IN countries where the gold standard
was in fun force. tt is only necessary
10 cite the panic which followed the
Quincy failure in England in 1866. on
the other hand. no country doing bust
ness on a large scale has been freer
from business troubles than France.
although she was planted solidly on a
bimetauic basis from 1903 10 1873. and
even now carries a larger silver cur
rency ia proportion to population than
any other great Power.
During the long period of depression
which began in 1873. il has been Off
cially stated that England was the
most seriously affected. But the whole
commercial world was in distress, more
or less intense according to the local
conditions prevailing. At the beginning
of 1893. the situation in the United
states was, at least. as favorable as il
was in any other leading commercial
nation And SO il remained until the
Cleveland Administration, II Conjunc-
ton with the New York be nix ring. de-
HJerately started a panic in order 10
force the repeal Of the Sherman law.
II was declared necessary To give the
country an object lesson" and it was
done BY concerted agreement there
was a general stoppage Of credit. and,
as a result, about six hundred banks
went under in the course Of a few
weeks. This affected all other business
and the panic became general It was
asserted that il was all owing 10 the
Sherman law, which was threatening
the integrity Of our currency. The no.
torious fact is that there was no lack
Of confidence in any kind Of American
money. The trouble was that the
money was all locked up and the peO-
PIE could not get enough Of any kind.
There was no intention Of making the
panic SO disastrous. Of course. but once
fairly started fl got beyond control
Coming as it did upon a market which
had been falling for twenty years. re-
ca"ery was extremely difficult. When
il did come the Improvement first ap-
pesTed in Europe. mauifesung itself in
largely increased purchases OF Ameri-
can products.
surely il viii not be denied that the
tremendous foreign taluugs of our
goods have been a most important cIa-
ment i'm making UP the sum Of the pros
reri'y referred 20 by the Comptroller
Let foreign purchases fan or even
three hundred million dollars. and IT
would be a body blow AT business con-
ditions IN this country. Il can hardly
be claimed that the establishment of
the gold standard here has induced for
wheat. cotton. and provisions.
80 fact is better known than that the
general revival Of business followed
closely upon the enlarged output OF
gold. just as it did when the discoveries
iu California and Australia spread sun
shine al over tine commercial world.
The new gold from South Africa and
other places filed the void left bv the
general disuse Of silver. and business
took on new life. not because the money
metal WAS yellow, but for the reason
that the supply was abundant The
Times says this not with any idea Of
keeping up the discussion 0f the money
problem as q political issue but merely
In the interest Of sound economics. III
any man believes that the establish
meut Of the gold standard is a guar
anty Of permanent prosperity time viii
probably coneince him Of his error.