The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. FRIDAY, JULY 13, 1894. MONEY IS THE GOD OF OUR TIME.

Pahiatua Herald, Volume II, Issue 174, 13 July 1894, Page 2

The Pahiatua Herald. with which is incorporated THE PAHIATUA STAR. Published Mondays, Wednesdays, and Fridays. FRIDAY, JULY 13, 1894. MONEY IS THE GOD OF OUR TIME.

In dealing with tha ourrency question in a previous article we showed how closely it affects the price of commodities. Since 1878, co-inoident with the adoption of a gold standard by the principal nations of the earth, there has been a steady fall in tho price of produco and commodities, and it is not surprising therefore that the price in produce values is attributed to the appreciation of gold, of which, besides being made the standard of ourrency for an increased number of people, the production has steadily declined until a year or two ago, when South Africa and Western Australia entered the list of gold producing countries, since when the yield has increased slightly. In 1871, when thedemonetisatitm of silver was in contemplation by some of the continental nations of Europe, Ernest Seyd predicted “ the general decline of prosperity” which must follow the “ destruction of the monetary equilibrium.” His prediction has been amply fulfilled, for turn whero we will wo see stagnation in trade and commercial depression. In England over 2,000,000 acres have gone out of cultivation, the value of exports had fallen by over £2.5,000,000 for 1892 as compared with 1891. Many thousands of tons of shipping are lying idle at various ports of the Kingdom. The trade of France bad fallen 111 percent. Russia, Germany and Italy are suffering in a similar manner. In America the depression is at an acute stage. The deficit in the national budget is 75,000,000 dollars, and about four millions of men are out. of work. Labor strikes, socialism, and anarchism are in evidence and general discontent prevails.. Until 1878, g01d and silver were jointly, in about equal quantities as regards value, the international money of tho world. Since 1878 gold has bad to perform single handed the international work previously performed by the two metals. Gold being simply a commodity, this increased demand put upon it necessarily increases its value, or in other words about 80 to 40 per cent, more produce is required now to purchase a given quantity of gold than was tho case before 1873. The yellow metal now possesses a monopoly in the matter of currency, and tho falsification of the standard of values thus occasioned has paralysed trade by introducing an element of uncertainty, speculation, and distrust. Gold has ! now to find a new relation to other ! commodities, and so long as that I operation goes on depression in trade j and commerce must follow. There is | not sufficient of the yellow metal to do j the work required of it, and the out- ! put of the world's gold mines must largely increase to come anywhere j near the requirement ; for it must not be overlooked that there is a great j demand for gold for the arts besides tho demands for currenoy purposes. J In America alone a ton and a half of gold is required annually for industry, while every year about four million sovereigns find their way to the East for hoards and ornament*. There is I thus ample evidence that the depression now prevailing throughout the | world has boon tho direct cause of the disturbance in tho monetary equili- | hriunj. Over production, over speculation and industrial strikes have caused spasmodic tluctuations in the price of commodities, hut these are io no way accountable for the steady is 11 ill prices experienced during the past twenty years. There is surely a j remedy? The mono-metallists, who may bo regarded as the conservatives | of the currency question, are for letting i matters remain as they are ; the i bimetallists, on tho other hand, are clamouring for a change. Th.. | bimetallic question, hitherto regarded ns a, u “ absurd fad,” is fast forcing I

itself to the front, and some of the great financiers in all parts of the world are ranged on the side of silver currency. A too-common error is made by those who have not given the subject a moinont’s consideration in supposing that bimetallists desire to fix a value for silver, but what they do wish is to fix the ratio of legal tender between the yellow and white metals, and when this ratio is fixed tho demand for either metal as money will fix tha relative value at that ratio. To make it clearer and more intelligible it is pointed out that under a joint standard of gold and silver the person who makes a payment has the choice of metal, and ho would naturally choose the chea'per metal to discharge his obligations; this would cause the demand for the dearer metal to fall off and lower its value, xvhile at the same a demand sets in for the cheaper metal tending to raise its value. This implies an automatic adjustment, for the moment a metal fails beneath the fixed ratio a demand would immediately set in for it, while the demand for the metal above the ratio falls. Hut can the ratio be maintained ? is a very important question, and the bimetallists assert that it can be under certain conditions ; first that tho mintage of gold and silver shall be unrestricted ; second that the nations adopting the standard shall be of considerable monetary importance ; a third condition that the nations adopt ing a joint standard shall adopt the same ratio is important though not absolutely necessary. These are the specifics of the bimetallist largely subscribed to by leading men. In Australia, particularly in Victoria and New South Wales the question is being widely discussed and leagues are being formed ta co-operate with those in England and elsewhere. In New Zealand, unfortunately, the subject hasnot soared boyond the limits of “ mutual improvement ” and “ debating societies.” It must, however, come to tho front, and the sooner the better. A cynic has said that “ money is the god of our time,” but the most of ns known nothing of its far-reaching effects. The greater part of humanity stands in relation to money rnuob as the little boy in the well-known picture issued in connection with Pear's Soap, bearing the legend, “ He will not be happy till he gets it.”