As to the object which England had in view in demonetizing silver we are
left in no sort of doubt. It has been candidly admitted by many of her
financiers and publicists. The reason for her stolid adherence to the
gold standard now is the same for which she originally demonetized
silver. Her income and creditor classes are daily in receipt of an
unearned increment to their wealth by reason of that demonetization.
More candid than the advocates in this country of the single gold
standard, the writers and press of Great Britain openly avow the object.
No better testimony to the fact can be adduced than that supplied by the
royal commission appointed in 1886 to inquire into the changes in the
relative values of the precious metals.
At page 90, Part II, of the final report of that body, section 128, the
commission say:
It must be remembered, too, that this country is largely a
creditor country, of debts payable in gold, and any change which
entails a rise in the price of commodities generally; that is to
say, a diminution of the purchasing power of gold would be to our
disadvantage.
Before the British Royal Commission of 1868 on International Coinage,
Mr. Jacob Behren, an eminent British merchant and member of the
Associated Chambers of Commerce, after answering special and technical
questions, was asked, in conclusion, "if there was anything else he
wished to state." His reply was (p. 13):
I would only state that, in my opinion, the general introduction
of gold all over the world has been one of the greatest possible
blessings to England. I believe that England would be now the
very poorest country in the world if the silver standard abroad
had been kept up, and gold had not been generally introduced.
Gold would otherwise have been very much reduced in value, and we
should have had all the gold poured into England. All the debts
owing to us would have been paid in the depreciated currency;
and, therefore, I believe that England ought to have taken the
lead in the introduction of a gold currency abroad. We ought to
be very thankful that it has been introduced, and we ought to
give every facility to its circulation.
Sir Lyon Playfair, in a speech delivered in the English Parliament on
April 18, 1890, according to the report in the London Times of the day
following, said that--
The true policy of England as the chief creditor nation of
the world was to keep perfect independence, and to refuse
participation in any entangling conference on our monetary
system.
And, according to the same report, Sir Lyon Playfair, referring to the
holding of the metals together by law, said that--
It was quite true that, if you yoked a cart-horse to a racer, the
strength of both would be increased but the speed of the racer
would be sacrificed.
Gold is the "racer" whose "speed" must not be sacrificed, no matter how
much injury may be effected by its tendency to greater and greater gain.
The weight of the enormous burden which is imposed on gold can not be
better illustrated than by a statement of this same Sir Lyon Playfair,
made in the same speech. According to the London Times of April 19, he
said that--
The liabilities of the banks of Great Britain to the public
amounted to L621,000,000, or about the amount of the national
debt of England; but the amount of coin or bullion to meet this
liability was only L35,000,000; or, deducting from each side of
the account L8,000,000 locked up in the Notes Department of the
Bank of England, it was L27,000,000; or only 4-1/2 per cent. of
liabilities.
On the same occasion Mr. Goschen, Chancellor of the Exchequer, delivered
an able speech, in which he gave his facts, his eloquence, and his logic
to the struggling masses of his countrymen by maintaining the wisdom of
remonetization of silver, but gave his conclusions and his policy to the
creditor classes by recommending no disturbance of present conditions.