BI-METALLISM.

Poverty Bay Herald, Volume XXII, Issue 7298, 5 June 1895, Page 4

81-METALLISM.

Mr Whteehead, a member of the Legislative Council of Hong Kong, in an article on bi-metalliem, predicts that unless our monetary law is amended, or unless British labor is prepared to accept a large reduction of wages, British industrial trades must inevitably leave British shores, because their products will be superseded by the establishment of industries in silver standard countries. This is his account of the matter :-In 1870 ten rupees were the equivalent of one sovereign under the joint standard of gold and silver, and paid 20 men for one day. To-day 20 rupees are about the equivalent of one suvereign, bo that for 20 rupees 40 men cau be engaged for one day, instead of 20 as in 1870. Against such a disability British labor cannot possibly compete. In Oriental countries silver will still pay for the same quantity of labor as formerly. Yet, as now measured in gold, silver is worth leas than half of the gold it formerly equalled. For example, a certain quantity of labor could havo been engaged in England twenty years ago for, say, eight shillings in gold, and a like qunntity of labor in Chum i"i,'-;iy. two dollars, equal u< the oki ratio Co eight shillings. Eight shilliugH in iuiglsiiiii now will pay for n<> more labor than formerly, wages being about the same, aud they have still by our law exactly the samo monetary value as formerly, though their metallic value has, by the appreciation of gold, been reduced to less than sixpence each. The two dollars exactly similar to the old ones can employ the same quantity of labor as before, but no more, yet at the present gold price they are only equal to four shillings. Therefore, it is possible now to employ as much labor in Asia for four shillings of our money, or the equivalent thereof in silver, as could have been employed twenty years ago for eight shillings, or its then equivalent in silver. The value of Oriental labor having thus been reduced by upwards of 55 per cent.

in gold money, compared with what it was formerly, it will be able to produce manufactures and commodities just so. much cheaper than the labor in gold standard countries.