BI-METALLISM UP-TO-DATE.

Star (Christchurch), Issue 5456, 7 January 1896, Page 2

81-METALLISM UP-TO-DATE.

The close of 1895 found the movement in favour of a bi-metallic standard under a temporary cloud; but the advocates of the reform, with all the enthusiasm that characterises the advocates of a just cause, were as energetic and hopeful as ever. Mr Balfour's rather pessimistic statement, that he had *' no reason to think that an international agreement would be the result of an international conference," had in no way damped the ardour of Continental bimetallists. The committee of the German Bi-metallist League met in November at Berlin, and while subscribing to Mr Balfour's declaration, resolved that " before any international conference takes place the Government of Germany should set on foot preliminary negotiations with the United States of America and with Prance," with a view to paving the way to an international agreement; and also that, "for practical reasons, the endeavour must be made to solve the currency question in co-operation with England." There can be no doubt that if the four Powers named in the above resolution were to agree on the silver question, we should soon have the bi-metallic standard introduced. Perhaps America would be the greatest gainer by the change, as that country has now a- heavy foreign debt bearing interest on a gold basis,: and under the existing system is likely to be still further victimised by the. holders of gold within her own borders. The difficulties in the way of international agreement are, however, stupendous. The bi-metallist agitators in the different countries are far from being at one as to the precise shape that the reform should take ; and so long as such is the case it is vain to hope that the Governments of countries whose interests are in conflict will be in perfect accord on the subject. Before any progress can be made, it is essential that the American bi-metallists should modify their attitude and come into line with the party in England and Germany. Even were that accomplished, there would still be the terrible vis inertim of England to overcome, for the friends of the gold standard are now organised and are constantly urging upon the public that England has nothing to gain from the change and perhaps a good deal to lose.

It has usually been maintained that the adoption of the bi-metallic standard by England would be an act of injustice towards India, which is heavily taxed on : a depreciated silver currency to pay interest on its enormous public debt on a gold basis. But it is becoming evident tiiat the reform would have a. compensating action, and that, what India would gain in one way she would lose in another. The Champion, an Indian paper, recently asserted that the bi-metallic movement in England was directed chiefly against Indian industries. " Its promoters are the cotton men of Manchester and the jute manufacturers .of .^Dundee. These .people never spend &' farthing unless they expect 'a shilling in return, and the farthings which they. Arc -now spending on this agitation are meant to .rob you ''of /the shillings which you earn in fair business competition with them." It would be small consolation, however to India, if she managed to compete in the industrial market by dint of hard work and low wages to her people, who meanwhile would have to pay increased taxation to save the Government from bankruptcy. Mr Moreton Frewen, who recently visited these colonies, has been making the best use in England of the argument from cheap Asiatic competition, in order to convince his hearers that bi-metallism would be the salvation of English industries. He said in the course of a recent address : —

"I believe that in very many branches of industry it will not be possible for highly-paid white labour to compete much longer with the cheap labour of 700,000,000 Asiatics. Particularly is this true in such trades as, for example, bootmaking, where the labour cost bears a comparatively high proportion to the value of the article produced. I remember some years since, when at Cawnpore, being much struck by the deftness of the Indian operatives in the boot factories there in handling the latest American machinery. The combination there of American machinery with skilled native labour at threepence' a day appeared to me ominous and, indeed, irresistible. I think, therefore, the competition of cheap labour in semi-tropical countries, where the standard and the money cost of living is very low, will require to be reckoned with more and more in these islands. To the already formidable competition of India and Japan is likely to be added Mongolian competition, if China, recently beaten, as it were, in her sleep, is now about to awaken. Thus the present time seems to mark a new and rather critical era for the white races everywhere. I think that we may have to reconsider our theories and burn some of our books."

This is a variant of the old cry against "the yellow man with the white money," but it is useful as showing the reverse side of the shield of English beneficence to India. ■ .

Here, as in the Australian Colonies, we have a double interest in the bimetallic, movement, inasmuch as the rehabilitation of silver would at one blow relieve us. greatly of taxation— by giving some stability to the prices of our products — and protect us from Asiatic cheap labour. There would also be similar relief to private debtors who send interest out of the colonies, for the same reason. Mr Coghlan, the New South Wales statist, calculates the difference produced by the "appreciation" of gold as follows :— From 1890 to 1893 these colonies received only .£672 for exports which in 1870-74 would have brought .£IOOO j but against this we can now import for .£745 goods which would, twenty years ago, have cost us .£IOOO. A balance-sheet for New Zealand on this basis has been prepared by Mr Donald Eeid, of Dunedin. He finds that for the five years 1890 to 1894, both inclusive, the money value of our exports was .£41,323,033, and as these exports would, twenty years ago, have brought .£61,492,606, it is clear that the colony has, by the appreciation of gold, lost a sum of .£20,169,573. There is a compensating law by which this heavy loss is partly counterbalanced. Our imports for the same period cost us .£31,586,726, and as these would at old values have cost .£41,892,208, the colony iB .£10,305,482 to the good on th» price of imports. ' But, taking exports and imports together, the colony has suffered a loss during the five years of .£9,305,091, equal to nearly two millions sterling per annum, or £2 17s per head for every man, woman' and child in the colony. To the wagcearner the significance of these figures lies in the fact that the loss of two millions a year suffered by our producers means that the " wages fund " of the colony is reduced by that amount annually; while to the taxpayer the importance of the calculation is that it shows that the amount lost would pay about seven-eighths of the total taxation of the colony. In other words, if we could introduce bimetallism and revert to the prices of 1870 we should have great relief from taxation,

and every industry in the country would receive a healthy impetus. The year upon which we have now entered ought to find bi-metallism being strongly advocated in all the colonies of Australasia.