The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-20

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deemed BY your committee most competent 70 form
Judgment with respect TO the which have OF late
Influenced the exchanges and the price Of gold will DO
ascertaned by areferepce TO the evidence
Your committee have already observed that for
siderable part OF the years OF 1915 and 1917 the foreign
exchanges were in favor OF this country and that since
the month Of July of the latter year they have been
Low Some OF the witnesses ascribed the unfavora
Bile 70 We eject Of the loans which had been
auce of ritisIy cafia for tkanose Of bei9s uyesed
IN foreign securities and foreign cons6ercn entepyhse
and 10 the effect OF very large importation Of in
tile course OF the last year. and of those witnesses
are of opinion that could have been taken
by the bank to control the effect Of such extensive
Other witnesses admitting that the causes which have
been adverted TO had tendency TO depress the ex-
changes conceive that contraction Of the Of the
hank sufficient counterbalance the operation OF these
causes might and nfalbly would have taken place had
there been an obligation on the bank TO pay notes in
However the exchanges may have been thus affected
In the Of the last and the preceding year. your
committee no reason TO apprehend that the causes
above mentioned or similar causes continue 10
affect them in such degree TO preclude the Bank Of
England by constant reference TO the exchanges and
the price OF gold and when necessary by cautious
ducton Of their paper currency from gradually approx
mating its value to that of gold and ultimately csab
fishing and maintaining II at par.
BRITISH CAPITAL INVESTED IN FOREIGN sEoURITIEs.
Your committee have had submitted 70 Thorn cacu-
ation OF the amount Of British capital invested in
foreign securities, and or the remttances which may
probably required for further payments account Of
foreign loans The calculation Ia founded the cst
ma
in foreign loans which estimates are stated to vary 70 an
uncomfortable extent and II computed that the amount
of British capital In foreign public securities ia about
ten million hve hundred thousand pounds, seven mil
lions Of which supposed to be in French stock The
estimate furnished 70 the committee by Mr. Hadi
mand who thinks there is possibility Of TO the
extent OF or two millions He is Of opinion that
little or nothing more will DO sent from this country on
account Of foreign loans now in course of payment
Mr. Holland a partner In the house OF Mcssrs Barring
does not consider the whole amount Of British capital
invested foreign including American funds to be ten
nc Ind
and does take into the account that which may have
been employed speculation in foreign funds, great
mart of which, he observed had been drawn back with
profit TO this country. He does not think that
than three million OF British property arc permanently
invested in French stock, and is OF opinion that Il it
advances in prcs considerable portion Of that will be
withdrawn and that there is probability that any
considerable will be RENTED from this country in
consequence OF loans now contracted for abroad
Your committee Of opinion that the future effect
upon the exchanges OF remttanccs account Of for
cign loans will be very tied; that preparations for
the resumption OF cash payments will tend to diminish
that effect and that subsequently to their resumption II
Will be subject TO constantly operating control In
confederation Of this opinion the committee re or 10 the
manner IN which the exchanges of France and Holland
countries having metallic currency have been
affected by similar remitlahces
THE FINANCIAL CONDITION OF OTHER COUNTRIES
COMPARED WITH THAT OF ENGLAND.
The Dutch capitalists have embarked, TO very con-
siderable extent in the foreign loans that have recently
been made and supposed TO have taken nearly three
ourths of those made by Russia but sensible effect
has produced upon the exchanges or currency of
Holland France, notwithstanding the great extent OF
contributions to foreign Powers which have been de-
rayed by that country, has maintained an ample metal
lie currency. II appears in the evidence Of Mr. Holland
and Mr. Irving that the price Of gold has remained
nearly stationary Paris for Ito last four years. that in
1907 when there In this country variation in It's
price to the extent OF seven per cent there was none IN
Paris that between the 9Th Of October and 22d OF
December last while tho variations IN exchanges be-
tween Paris and this country amounted to four per cent
the greatest variation between Paris and any country
which had metallic currency did not exceed onehaf
per cent.
contributions which France has paid to foreign countries
and onc-half per cent"
When your committee consider the extent and value
OF the cxportabc produce Of this country they have
doubt Of its ability 10 command such portion of tho
precious metals as may be necessa for the pu oses OF
by the samc means by which they are maintained In
other countries where, from an in perfect state Of credit
nents much larger metal currency is necessary to-.
this country will require, in proportion 70 its fros
trade aud Internal commercial dealings
MroETAMcE or nEsUniNG srES 'g tho prepare
tons for the resumption OF ccs,iaion or vo.r co,u
those difficulties are, inn me important and permanent
mttee ou.wegnea Rat standard by which, previously
=. ~. 90. Irc., the valuo OF commodities was meas
TO ahe year though variable in certain degree is
much exposed to nuCtuation than any other that can
pour committee abstain from entering more at large
into this important topic from consideration that the
Legislature has various occasions expressly pro-
metallic standard OF value and that tho duty which u
has dcvoved your committee Is other tlan TINT
or considering at what period and by what that
great object can be best effected They see nothing in
the circumstances Of this county, or OF Europe, which
render expcdent to postpone preparations for the
OF cash payments, and by thus defcrring
probably, to aggras alto the difficulties which may
DO inseparablc from that IT. however, the
suggest to tho House any plan by which,
in their opinion the pressure Of such difficulties may be
greatly relieved, and, M The same time, the most i'm
portant advantages which would accompany return TO
no
considered to exceed the powers committed TO them
by the House by the suggestion OF such plan, though
il may involve temporary departure from the laws
which regulated currency previously 70 the rcstric
ton.
PLAN FOR RESTORING THE METALLIC BASIS.
plan Of this nature has been under the consideration
OF the committee and before they explain Its details
assign the grounds which they disposed to
mend the several which form part Of IT, they
will present the general outline 10 the House.
They propose that after the LIST of May 1921 the bank
shall be liable to deliver quantity OF gold not less than
sixty ounces OF standard lneness 70 be hrst asayed
and stamped at his Mjcstys mint, ut the established
mint price Of f3 ITS 10Ed per ounce In exchange for
such amount Of notes presented to them as shall
represent nj that rate the value OF the gold demanded
That this habli', &c the bank 10 @cscr gold Ia cx
change for their not shall contire Tor rot les than
two nor more than tre years ra0 ~ Is. of nay 1921
and that tho ond Of a1 period cash payments shall
To resumed
1imt on day to be fixed BY Pafiamcnt not later than
the LIST of February 1890 tho bank shall be required TO
deliver gold, of standard tncncss assaycd and stamped
before mentioned IN exchange Tor their notes tan
OF not less than sixty ounces being demanded
at GA Is per ounce that being nearly the market price
of standard gold in bars on average Of the last three
months.
That on or before the LIST OF October 1890 the bank
shall nay their notes gold of standard neness the
rate Of GO 19s Cd and or before the LIST Of May
1921 before mentioned at the ancient standard rate
OF CO lis. l0kd
Your committee proceed to state the reasons which
induced them recommend the adoption OF these sug
gestons.
BY requiring the bank pay, after tho 1st OF May
1921 given quantity OF notes. in standard gold at the
price security against fuctuation IN tho value OF
paper currency will BIO provided, OF the same nature
with that which payments In specie afforded previously
10 the restriction II the issues OF the bank shall
any exceed the amount 10 which they must be
limited order to maintain their value ON par with
gold the bank will be subjected to an immediate demand
for gold and will naturally have recourse, a. before
tho restriction the contraction OF tho issues Of their
paper.
The chief recommendation OF this plan In the opinion
OF the committee is that will enable the bank TO pay
their notes in gold at much earlier period than they
could pay them in the present gold currency There