The Depression Predicted.

Auckland Star, Issue 153, 1 July 1887, Page 2

The Depression Predicted.

(To the Editor.)

j?'",.- Perhaps the following extract from LaveJoye's recent work on' "International Bimetallism " may interest somo of your readers :—" What first strikes one is that the two economists who specially devoted their attention to the monebary question, M. Wolowski and M. Ernest Seyd, described this crisis beforehand with truly prophetic precision. If a great state demonetises "i'ver, the consequences they said will be these:—l. Commerce will decline, especially in the countries bn-vJig most trade with foreign coun<vi;ie... 2. The spirit of enterprise •.i industry will materially languish, Mid consequently much fewer establishments will be created than usu.il. 3. The fall of all prices will lead states having large payments to make abroad, to impose protective duties in order to obtain thereby a favourable balance of trade increasing their monetary stock. 4. The various peoples of the globe will be divideU into two groups, one having gold «md the other silver money, and this »ct, through the sudden and sharp * . iation of exchange, will make their co_ mercial operations hazardous, and will coiifciiiuently hamper them. 5. The fall of pries will be very injurious to manufacturers, merchants, and agriculturists, and Xvmsequeii.ly to their workmen ; it will y cneiib only fundholders and those holding _*pital in money obligations. 6. In this period of depression, the cause of which will not be accurately traced, remedies will be resorted to which will aggravate the evil." Is not this a faithful picture of the economic facts which have passed before oui eyes ? . . . Lord Beaconafield also announced that the monetary reform of J 873 •wo- Jd produce great economic derangement and disastrous consequences.—l am, etc., *R. D. L. Du.i'us. Mount Eden Road.