The commoner. (Lincoln, Neb.) 1901-1923, August 03, 1906, Page 14, Image 14
w 1 f T"Vfff ! "i 'TWfRW 1 ... T The Commoner. 14 VOtUME 0, NUMBER 29 ftThe Fall in the Value of Gold 11 Tho Outlook, London, for July 14, ' prints from Moroton Frewon the fol lowing lotter: In your Ibsuo of June 30 there Is an admirable article on "The Empire and its Trade." You pointed out that the exports of the United Kingdom had increased from the sum of 240, 000,000 In 1874 to. 301,000,000 In 1904, an increase ofiy25 per cent. You went on to show that the growth of the exports in tho case of Germany and the United States lias been on a much more splendid scale. May I venture to point out that in dealing with the period under review any figures based on the value of trade must be very far from reliable? From 1874 tb 1896 average prices fell in the ratio of 100 to 01, so that on the scale of prices obtaining in 1874 the volume of our exports must have more than doubled to have attained tho aggregate of 301,000,000 in 1896. Mr. Sauerbeck's "index-numbers," which are published in the Times' city column during the first week of each month, are becoming of unusual Interest. Since 1896 the depreciation! of gold (in other words the rise of prices) is just what we should expect In consequence of the enormous' yield of the world's gold mines. It is not too much to say that never before has there been such a continuous and rapid rise of prices a rise of prices which could only have originated in a metallic inflation of the world's cur rencies. The late Prof. Jevons wrote (Inyestigations in Currency and Fi nance, p. 101), of the much less 'rapid fall in the value- of .gold which was caused by the gold discoveries in California and Australia, "The coun try may be said to be calmly looking on while every contract, including that of the national debt, is being vio lated against the intention, of the con tracting parties." Mr. Sauerbeck's index-number, ob standard of value and exchange to reward the labors of a wiser genera tion. In the meantime we must be content, as Jevons expresBed it, to "calmly look on while every contract, including that of the national debt, is .being violated." But to the "silver men" of 1896 let me only point out that, in Wolowski's phrase, silver (the legal tender silver money of Europe) was after the groat gold discoveries of 1849, "the para chute which broke the fall of gold." What Wolowski meant was this: Three hundred million pounds sterling of gold pouring into Europe inflated our currencies, and raised European prices, and thus all the exports from Asia were magnetised by those higher prices which awaited them here. So that the trade balances immediately turned in favor of Asia, thus -correcting currency inflation here by melting up and drawing Europe's legal tender silver into the east. But today in Europe there is no longer any silver "parachute" to break the fall of gold, because there is no longer any legal tender silver to be taken away at "molting- pot prices." Throughout Europe and America, therefore, the metallic inflation of the next quarter of a century is likely to raise a prodi-l gious clamor on tne part or tne credi tor classes. It is probable that the legislatures of the great creditor com munities may be importuned to- de-' monetize gold, and that the supreme virtue of comparative stability may be ascribed to silver monometallism. And if this remarkable Nemesis awaits the aforetime "gold bugs" it may well be that Mr. Bryan, the tone and temper of whose mind is conservative, or at least anti-empirical to a fault, may in the evening of his career find himself ranged on the side of those who seek palliatives for inflation. "No ques tion." said the late Mr. James G. Blaine, "is settled nntil it is settled hood of any nation persisting in hos tilities contrary to its recommenda tions would be remote. The point at which this is particu larly aimed is the oft recurring and ever threatening source 6i trouble, national honor. This is one of the questions which The Hague conven tion does not attempt to settle. The merits of a case where national honor is concerned are not easy of decision by the parties concerned., A review of the case by a mutually friendly power may often smooth over the dif ficulties and avoid necessity for resort to arms. A nation would hardly rush into war in the name of honor when a friendly power had already decided that honor was not at stake. Honor should be best conserved In yielding to the cause of peace and abiding by the terms suggested by the mediator. The new article will be submitted for approval at the next meeting of The Hague peace conference and if adopted there may be regarded as one of the most practical in the com pact and one of the most far reach ing. It vitalizes the whole and puts it on a working basis where it can accomplish the ends sought as it has never been able to do before. Sioux City (Iowa) Journal (Rep). tained by striking the average price aright;" a currency system which was of forty-five leading commodities, contingent first on the modesty of Bive.s ior me average or. me yearB nature, and which is today threaten-1867-1877, 100; 1896, 61; May 1906, 77. mg to revolutionize prices because a In other words, tne amount of pro- chemist discovered the efficiency of a ducts which in 1896 would have pur chased sixty-one sovereigns would in 1906 purchase seventy-seven sover eigns. So that, had the volume of our weak solution of cyanide, is today "settled," not because it is a right set tlement, but only because the advo cates of currency contraction in 1896 iBua. o uiu.,, uu.u me vuiuu;e ui uiu cates of currency contraction in 1896 exports for the past ten years failed burned their boats. The conundrum to expand at all, yet the sterling value of these exports would have shown an increase of over 25 per cent. I have not a statistical abstract at hand, but ; . If I could supplement my letter with a footnote showing what the exports of 1905 would be compared with 1896, at the prices obtaining in 1896 the statement would be very illuminatinc. There is every reason to anticipate that prices during the next fifteen years will rise enormously will re vert to the price-level (equals 100) of the decade 1867-1877. This rise of prices will bo unfairly ascribed to the operations of trusts and to the advance which should equitably take place in railway and steamship rates. The real reason, however, will be in the depreciation of gold by reason of Its abundance. So .recently as 1883 the yield of the mines was only 4, 614,588 ounces, while for 1905 it was 18,211,419 ounces. One word more. In your editorial notes of this week you forecast that Mr. Bryan is likely 'to reach the White House if, as you conjecture, he has "recanted" of his "free silver hero- sies." If. Mr. Bryan in 1896 and bi metallists the world over merely de sired "inflation," they have since got inflation with a vengeance, and in evitably a far vaster inflation awaits ' us. If, however, we wanted steadier prices and fixity of exchange between yellow men with white money and white taen with yellow money, then - we haveXnot got it, and we leave that interesting issuenamely, a scientific of the late Prof. Bonamy Price, "what is a pound," is likely only a little later to again perplex men's minds. I am, Sir, yours, etc., MORETON FREWEN. Brede, July 8. THE BRYAN AMENDMENT Mr. Bryan has done a remarkable piece of work in the inter-parliamentary council. He has secured the adoption of an article that, if ac cepted by the nations that have signed The Hague arbitration convention, Will work potently for the cause of international peace. The new article brings the work of securing arbitra tion down out of the clouds and makes a business proposition out of it. It places belligerently inclined nations in a most embarrassing position if mey uo not Incline to reason. The amendment provides that if n. disagreement between nations arises upon other grounds than those cov ered by the present articles of arbi tration, they shall not commence hos tilities till they have talked it over with some friendly power. Either party, or the two jointly, shall ask investigation of the question by one or more friendly nations, and they shall keep their hands off each other till the matter has been properly gone into. Though the adjudication would not have tho binding force of a deri sion of The Hague tribunal the moral QUEER ARCHITECTURAL JOKES A good deal of indignation, real or simulated, is worked up in the higher circles of Pennsylvania politics over a collection of portrait busts dis played upon the bronze doors of the new State House at. Harrisburg. Architectural jokes of this sort are of frequent occurrence. A good deal of chiselling had to be done upon the facade of our Public Library a few years after the completion "of the building to obliterate the acrostic spelling of the names of its architects up and down the catalogue of great men of all ages there inscribed. And today, deftly worked in among the decorative carving on one of the fine business' blocks in Boston, may be dis covered the emblem of the pawn broker, the triple balls, a sly refer ence by the artist designer to the source of the fortune of the owner. Yale men whose class numbers run back anywhere in the sixties will re call the fine square church tower on Chaple street, in whose irregular ashler were figured plainly and neat ly, at regular spaces, every ace in the pack save one. Tradition had it that the architect perpetrating this irrev erent joke fell from the scaffolding when on a visit of inspection, and the trefoil never was set. The other aces were broken out with some dif ficulty a number of years ago. Bos ton Post. PATENTS SECfe,V., ouvzk Ifroo report as to Patentability, Illustrated Pnii Hook, and LlBt of Inventions Want "d sSnt fr lo EVANS, WILKKN8 & OOYpMhTSuSSi.C. NORMAL COMMERCIAL SHORTHAND TELEGRAPHY QCI STUDENTS gO '.ENROLLED Positions Secured rnTi&J? Refunded CAR FARE PAID. En. ter any time, select stu dies. Send for free Cata loifor JLu11 Information Allen Mooro, Pros., Chillicothe, Mo. State Course Dosirod T" 11 TLeJii i TTtWl t m I Opportunities in South Dakota Rich toll, a mild cllmato and abundanro of vratorhavo mado South Dakota ono of tho host agricultural states In tho Union. Tho soil of Lyman County Is unusually rich. Tho oxtenslon through Lyman County roccntly built by tho CH1QAG0, MILWAUKEE AND ST. PAUL RAILWAY has opened up a part of tho state hlthorto sparsoly settled. Now towns aro being op onodup and land values aro Increasing rap idly. Bond for tho now book on South Dako ta. A postal to tho underslgnod will bring it. Low rates to all points in South Dakota ovory Tuesday. F. A. NASH, General Western Agent, 1524 Farnam Street, Omaha, Nobr. NOT "ONTO HIS JOB" A brakeman retired to a farm and started to lead the simple life. Hav ing a piece pf new land to break, he hitched up a team of mules, wrapped tho lines around his waist in farmer fashion and started to work. He had gone but. a short distance when he saw a stump ahead and immediately began giving the railroad "stop" sig nal with both hands. The plow struck the stump and the brakeman went head first over the plow. Picking him self up, he ran angrily to the mules and roared. "You flop-eared scound rels, don't you ever look back for a signal?" Atchison Globe. Subscribes' Advertising Department This department is for tho exclu sive use of Commoner subscribers, and a special rate of six cents a word per insertion the lowest rato has been made for them. Address all communications to The Com moner, .Lincoln, Nebraska. "I K JEWEL ELGIN OR WALTHAM X.J movement, fitted In 20 year open face cose. $9.49, send for our watch catalogue. Ad dress. G. H. Goodwin Co.. Tracy, Minn. HplOR INFORMATION ABOUT ARKANSAS X! farm and coal lands write L. 0. McNabb Paris, Ark. IF YOU WANT TO KNOW ABOUT THE opportunities of the Southwest, send for free copy of our paper. Write to Rural Home," Thayer. Kans. INDIGESTION RHEUMATIC CURE WRITE S. E. Moore, Lexington, Ky. GOITRE CURE. TREATMENTINTERNAL. Cure by absorption. No patent medlclno and no danger. Thirty days' treatment free. This offer good till Aug. 20th, 1900, Dr. J. W. Binoldey, Kenton, Ohio. it TELLING TIME BY FLOWERS The professor of botany paused un der an oak ,and the yourig girls in white grouped themselves prettily about him. sum oi ine wague tribunal the moral "To tell time by the flowers" he Wt would be such that the likeli- said-you aCiaall be 2te to do that. Think how convenient would be at this season. . "It is 5 a. m. when the sow thistle opens. It is 5:30 when the dande lion opens. It is seven when the white lily opens. It is 8 when tho hawkweed opens. "At, 11:12 a. rrr. the sow thistle closes. At noon precisely the yellow goat's beard closes. At 2 p. m. the hawkweed closes. At 5 the white lily closes. The dandelion, closes at 8 sharp. "Since Pliny's time forty-six flowers have been known to open and shut with great punctuality at certain hours of the day and night. It would be possible, with a little labor, to con struct a garden whose flowers, folding and unfolding, would make a first-rato clock." Philadelphia Bulletin.