April 17, 1895. Į
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CHINA OVERLAND TRADE REPORT.
293
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twenty years a great cotton spioning and products of labour and those additions to the pro-divert the energy of the West towards the weaving industry has grown up in India and ductiveness of labour now enable silver countries East and in that sense it is an unmixed blessing during the next twenty years a similar great to meet the doubled demand made upon thein in industry will in all likelihood arise in China liquidation of their indebtedness on former gold be concerned at the monetary shortsightedness for the East. Why Europeans in the East should to the ruination of English spinning and weay-borrowings. But the position of the labourer is of the West can only be explained on ing, and he will probably laugh, while asking not ameliorated nor is he any better off while ground, that they are Europeans first and East- what factory fire in England has been put out one half his labour, which should be his own, is by Bombay factories. And in a sense he is right, taken by his gold creditors. The help silver impel the East forwards by causing its people to oru traders afterwards. Cheap silver must for the Indian mills have not caused English countries require to consume more of the pro-labour, either from necessity or desire; dear mills to become less numerous; they have only ducts of the West is return to the old price silver might throw it back; it is not prevented English mills becoming more nume of silver, by which their indebtedness, or the would, because a parity between gold and silver
easy to
say rous. If they have caused a change in fashion at produce of labour they must export, would might restore confidence to Western capitalists the English mills it is nothing; indeed if English | be reduced one half. As things now stand silver and cause them to transfer their now useless mills did not adapt themselves to circumstances countries have to seek ways and means for lesson-boards to the East, which again would create in- and stop making articles which became unproducing the outflow to gold countries, which take dustry. But whichever way we look at the ques tive they could not exist. And the average English- more and more produce year by year as interest tion it is a difficult one to solve and one cannot man will probably think they will continue to do on the labour saving appliances previously lent, wonder at the West hesitating to change its pre- so even should factories spread to China. England while produce has also to be sent out in exchange rent policy before being driven to it by a labour' is different to any other land. It is for the rich for manufactures which are still imported. If crisis. That it will be driven there can be little man a beautiful country to live in; there is no they must send produce West asinterest on these doubt, because gold capital is becoming absolutely other country in the world to compare with it, gold loans, they can at least lessen the drain on unless perhaps Japan, and there are many rich it by becoming manufacturers themselves and cent. If things are allowed to drift people will valueless. Just now money is worth one per men in England. During the twenty years suc- ceasing to take some portion of the manufac-soou have to pay bankers for taking care of their ceeding the American and Australian gold dis- tures of the West. coveries of 1848-1850 some 580 millions sterling amelioration in the lot of the Eastern labourer upon money, capitalists may wake up and bring Then there may be hope for gold, and then, when no interest is obtainable of gold poured into England. Where are those and producer. Half the product of his labour pressure to bear upon governments. 580 millions now. They are not in England; au-
If things thorities say there are not more than 80 millions other half, previously exported in exchange for operatives' wages.
must go abroad in payment of debts, but the go on as they are the time must come when in England; therefore the odd 500 millions have manufactures, will be retained in the country point for British statesmanship, will decline. the one strong rallying gone abroad in loans to other countries, and so long and exchanged against country made cloths. Whether agriculture can be as those countries acknowledge their indebted- When all Eastern countries can thus do without affected than it is now may be questioned, but more adversely ness and continue to pay interest on the money necessaries from England and will take only the smash is only being staved off because the borrowed, it means an anonal return to England luxuries, what will be the position of work capital employed in it is not yet all exhausted. in food and material (at 3 per cent.) of 15 mil people in England? At present they are in at best it is only a question of a few years for lians sterling. But the 500 milions during the clover, because their wages are not cut down gold to be unproductive, operatives' wages mach time they halted in England were converted and the donble quantity of produce silver coun- lower, perhaps active strife between capital over and over again into coal and iron and tin, tries send as interest on their debt causes food and labour, and agriculture completely wrecked. factories, and fouudries, ships and railways, and to be cheap. When silver countries become Statesmen may allow things to run the profits upon these in the shape of manufacturers and require to pay gold countries course or they may not, for the only thing to be exported articles have also gone abroad only half the produce they are now shipping, said against a ratio between gold and silver for investment. I have no clear idea of the food and material in gold countries will become is that it would raise the price of food amount of capital England has lodged abroad, dearer, and when silver countries no longer im- without raising the price of labour and so perhaps bat I have seen it stated that the annual savings port necessaries there will not be sufficient work cause discontent amongst wage earners. of England are 200 millions sterling, which (at in gold countries for operatives, who will have to issue is, possible revival in silver mining and so A side 5 per cent.) would re-resent a capital of four emigrate, cultivate the land, or starve. thousand millions. hus it is that the rich man fling of the cards is now going on and it depends tries look to that remedying itself by diminution A shuf- again flooding the world with silver. Gold coun- oan hold land in England and laugh at agricul-upon how they are dealt whether the East in the production of silver and consequent ad- toral depression, but the farmer who has to is to remain agricultural or become manufactor- vance in its price, but a lessened output of silver fight for his living cannot so regard decline in ing, whether the West is to lose population or would be as great an evil to one half the world the value of agricultural produce. If he could retain it. From the point of view of civilization as a lessened output of gold to the other half, pay his labourers half wages it would be different, nothing could be happier than the hardship low because it would bring about a similar decline in but he cannot, for decline in silver has not pene silver imposes upon the East, because it impels prices in the East to that which followed the trated below the crust and has not yet reached it to fight against that hardship and redress it, scramble for gold in the West. Country after the labourer's wage. The consequence is that and the only way to redress it is by borrowing country going gold and rejecting silver has farms, unless favourably situated near towns, labour saving appliances, setting up its own in- brought on the present deadlock and it is interest- mast in the end be abandoned, which to the dustries, and by ceasing to be a customer causeing to notice bow. There are nominally about capitalist is nothing, sine, he points to capital the industries of the West to decay. Eugland 400 millions sterling each of coined gold and lodged abroad bringing in double returns, twice chiefly and other European countries to a minor silver in the world or together 800 millious. as much corn and oil and wine as before, for degree have laid a tax upon silver countries, as Rob the 400 millions silver of half its value and whereas seven men previously worked for him they have laid taxes upon gold countries. The gold and silver together become 600 millions, in the East, now gold converted into silver pro- East has not yet talked of repudiation; other which alone is sufficient to cause prices to be oures the labour of fourteen men. While land countries have, and scaling down interest upon twenty-five per cent. lower than twenty years ago; can be held for pleasure in England, it is not so debts is now a familiar process to European restore silver and prices should advance thirty- held in America, and in that country a different capitalists, who do not see or will not realize that three per cent, trom their present level, and that view is taken of the silver question than rich this is owing to decline in silver, to the double is where the pinch comes. Englishmen can be expected to bold. The quantity of commodities extracted as interest duces interest, the cheaper commodities are the So long as gold pro- American sees that to compete against the East upon debts, which the East pays, but the other better it is for gold capitalists, as it leaves them he must work twice as hard and produce twice countries cannot or do not. Capitalists do see as much as before, and as there is a limit to
more to spend. They might put up with high an enormous accumulatibu of gold at gold cen. prices when they find they cannot get interest. human endurance: he finds that impossible, so tres and they do feel the weight of it, from the npon gold without them and therefore the his cry is, put the labour of the East back to decline in interest which it occasions, and none way to convince gold Eugland that bimetallism where it was 20 years ago, turn on seven Eas- know what to do with their gold. They fear to would be to her advantage is to rob gold of terns against one Western and their laziness lend it to gold countries, because if these pro-its value as an interest producing commodity. and our activity are on a par, but turn on mise to pay taree per cent. interest now, a few Unfortunately, however, English gold is bat fourteen Easterns and our stamina is not years hence may find them cutting it down to stored up labour, and when lenders are will. sufficient to resist the strain. The American one per cent. They fear to lend it to silvering there are generally borrowers in order to fights for his owu hand, off his own land; the countries, because they do not know where silver set labour at work elsewhere. England has the Englishman does not. He, or at least all but is going. They fear to leud it to manufacturers, ball at her foot; she only waits to set it rolling the very small proportion of wage makers, works because they know not how long factories and until decay in her manufacturing industries for wages and so long as decline in silver does foundries will survive in England. As not touch them, cheap comodities are an land-well, land in England is for luxury, Figures sometimes force attention although not to compels her to do so, and it may then be too late. unmixed blessing. While gold wages are un- not returns, and as to land in other coun- touched in gold countries the lot of the labourer tries they have only to look at the ruin of
always interesting, but the position of the Bri- tish manufacturer now and twenty years ago is a happy one, but inasmuch as decline in silver the farmer in America owing to the burden requires from silver countries double the amount of double quantities of produce remitted from Twenty years ago the cost of material in the can scarcely be made plain without them. of produce previously called for to liquidate their the East. Thus the whole world is troubled by East was 50 cents, the cost of production 50 indebtedness, the lot of producers and labourers the selfishness of one nation, which because in the East cannot be an improving one, since things with it are well to-day. shuts its eyes to of material was two shillings, the cost of pro- cents, together one dollar. In England the 'c st they have to work double time to produce the what may happen to-morrow. The British duction two shillings, together four shillings, or double amount they are required to pay. Of Empire must of course decay, as did the Roman. course this is fiction, because they really do not! Empire before it, and what caused collapse of
bue dollar. England may have had some slight and could not work twenty hours nor
advantage, but it is immaterial for the purpose even the Roman Empire-unwise currency legislation sixteen hours a day. The very indebtedness of which imposed excessive hardship upon its the cost of material in the East is still 50 of illustration. Twenty years later, or to-day, silver countries means so much gained in labour tributaries-may also hasten the decay of the cents, the cost of production still 50 cents, saving appliances, which themselves double the British Empira by lopping off its brauches and together one dollar, but look at the posi productiveness of labour. These appliances may leaving England to become a nice, quiet, tion of Eugland. be railways, roads, tanks, canals, or anything from pastoral little island, or, its population gone, a a steam plough to a field hoe. Loans were not game preserve for its gold capitalist conquerors. made in gold nor in silver; they were made in the Meanwhile it is certain that low silver must
only
Material has declined 50 article costs three shillings against four shillings per cent., labour is the same, and the finished twenty years ago, but transferred to the Fast it
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