Wairarapa Daily Times. [Established 1874.] THURSDAY, FEBRUARY 21, 1895. THE CURRENCY QUESTION.

Wairarapa Daily Times, Volume XVI, Issue 4957, 21 February 1895, Page 2

Wairarapa Daily Times. [Established 1874.] THURSDAY, FEBRUARY 21, 1895. THE CURRENCY QUESTION.

Tins question, Ims, within the past tow years, come prominently before the public in almost every part of the world. Those who claim for silver an equal share with gold in bearing the monetary transaction of mankind, were, until quite recently looked upon as" faddists," but the extremities to which the silver currency countries liaye been reduced, has forced a closer examination of the currency question, and the bimetallisfc is no longer ranked as iii "crank," but lms received excellent support from experts. The United States and India are at the moment, in a, commercial paralysis, entirely due to the currency. The United States Governmeuthas in the past issued greenbacks and Treasury notes of the value of about £97,000,000, which are redeemable in gold, and the difficulty of the Treasury appears to be its inability to keep a sufficient gold reserve to meet all demands. President Cleveland in his message to Congress on the 29th ult., stated that last year one hundred and seventy millions was withdrawn from the Treasury for shipment abroad or boarding at borne. To replenish the Treasury reserve oue hundred million dollar's wero borrowed last year, and a further gold bond issue of about sixty million dollars was recently made. But these loans do very little good, they temporarily relieve the stress, and the leakage must continue so long as the cause for it romaius, America must either adopt a gold or a silver standard, or revert to the greenback. The currency question is of pressing importance to the Government of India, which receives its revenue in rupees, worth now about one shilling and twopence each, and has to pay a very large part of its debt in gold; all the European Civil Serpauts of India are placed in a similar position, receiving their salaries in rupees, and paying in gold for the education mid support of their families in Europe, and for all the commodities they import from Europe. The Peninsula and Oriental Steam Navigation Company felt the pinch caused bv the depreciation of silver, for during its last fiscal year, the (Cfliapany lost on exchange, no less %n £189,000. ' ' i Since the dissolution of the Jjatin Union in 1875, the free coinage of I silver has been for the first time in the world's histey, stopped at tho ' printo, and sines then jold |

lias bad to undertake single handed tlio settlement of ever increasing ° trade balances. ■ Many renowned ? economists uttered a warning note " prior to the demonetisation of silver a that a disastrous fall in prices and a ]j world wide depression would result. Their predictions have been well ful- . filled, and a ruinous fall of prices is x the universal experience, and the , tendency continues on the down c grade. The position taken up by t bimetallists is that owing to silver s being barred, legal tender money has been made scarcer and i dearer, aud in consequence more 1 wool, more cotton, more silk, has J to he given for the same amount ! of money, and their proposal is to re- ' habilitate silver, nml by international agreement, to open the mints ! to the free coinage of the white metal in common with gold aud to : fix upon a ratio between gold and silver, which prior to 1875 was la* of silver to 1 of gold. The advocates of the double standard maintain that by fixing the ratio the demand for either metal as money will fix the relative value at that ratio, that is to say, under bimetallic currency the person who has to make a payment would naturally choose the cheaper metal to discharge his debt, this would cause a demand for the ' cheaper metal and so raise its value, while the dearer metal would recede , thus ensuring an automatic adjustment. The currency reformers have apparently the best of the arguments, anil the currency question is almost certain to form the subject of an international Conference. The ' Reichstag lias authorised the Federal Government to convene an international monetaiy conference, rehabili- \ tate the silver currency, and in the , JJi-itisli Parliament the bimetallists there, are moving in a similar direc- ' lion. Lord Rosebery has been urged by such important bodies as the Chambers of Commerce of London and Manchester to facilitate such a conference, while nearly all the professors of political economy are favorable to the policy of , bimetallism. The monetary question is of vital importance to England, for at the present time, her trade in the Kast is in a state of collapse, owing to the fall in the exchange value of .silver. -If the depression is due to the disturbance , of the currency caused by the demonetisation of silver as urged by the bimelallisl, then we can heartily wish them success, in any case an International Conference to consider the matter can do no harm, but may discover a remedy.