The Idaho scimitar. [volume] (Boise, Idaho) 1907-1908, 1908-01-04
THE IDAHO SCIMITAR.

cyanide of potassium would dissolve, and thus rem
der recoverable the gold formerly lost in tailings
probably further contraction of currency and a
further fall of prices would have involved the world
in infinite disaster. AS it is, however, the chemist
has found the way and prices the world over are
advancing with nconvenient rapdity. 1t is pretty
safe to predict that the price level of 18671877 (he
100 index number of Mr.. Sauerbeck) is not now
very far away. And, strange it may seem, prices
are probably advancing in Europe and America more
rapidly than would have been the had the lead
ing minis of the West been open to the free coinage
of both the metals at to 1914 and for this reason:
When the great mass of gold from California and
Australia began to pour into Europe in $780, its eff
feet infationthat is, it raised the entire level
of European prices Attracted to this rise of prices
in gold-using Europe, exports from all the silver
currency communities, India, China and South Amer
lea, showed rapid expansion Indian jute and cot
ton and wheat sold for more gold in London; this
gold, when exchanged for silver, gave the Indian
exporter more and more rupees So that Asia &C
qured huge favorable trade balances land, to acqut
these balances, the mass of Europes legal tender,
silver, began to pour itself upon ASIA vivfying and
expanding all trades there.
"In 1850 the currency of France was mainly silver
fifteen years later gold greatly predominated; I'm
good money that drove out the bad-the gold that
was rapidly expeing silver. Thus, to Chevaer's
happy phrase, Silver (the coined silver of Europe)
was the parachute which broke the fall of gold But
for the fact that there was great mass of full legal
tender silver which the gold displaced and drove
into Asia, the very important rise of prices after
the Californian gold discoveries would have been
far more rapid still
",Today the silver money of France and the Latin
Union being enormously over valued, there is no
legal tender silver in Europe that can be displaced
by the new gold. Thus the parachute has disap
peared and prices in Europe, and still more in Amer
lea, show all the symptoms of imitation.
To-day what remains of the currency question
is question for bankers and traders. The bankers
want secure currency, which depositors will bring
ill., and traders are vitality concerned to avoid seven
per cent bank rates. Modern profits in business
on cheap money rates A with &c.,
600 of his own buys ship mill or business
for f5OOOO borrowing 100000 at four per cent His
yearly profit is, perhaps, per cent or 1880;
so that after payment of f1,200 interest his profit
on his own 100000 is $4,000, 11A per cent. But
such profits contingent reasonable bank rates,
and if profits shrink they must be shrinking at this
moment, not only trading profits almost oblit-
Grated but there are unpleasant hours in store for
he worlds chancellors of exchequer.
"Thus the problem of reasonable bank rates has
become the most important problem of Our time.
The restoration of silver to free coinage in France
md the consequent reopening of the Indian minis
lean out of the domain of practical politics. Thus
,ur free market for gold which, [ explained,
supplemented and made effective the French bimetal-
ic regime now lags superfluous; its chief motif,
hat of guaranteeing fixed exchanges, has disap-
eared Emile de Laveleye wrote during the last
ear of his life: Failing the restoration of silver
he world will revert to protection and anti-semi-