Los Angeles herald., 1892-10-06
THE SILVER CONFERENCE.


The international monetary confer
snce which our country was ipstrumen-
tai in calling has had much more gen
eral response from the commercial ma
lions of Europe than was at first ex'
oected. 1t will meet at Brussels on the
22d of November, and 60 far seventeen
powers have agreed to send representa-
lives to the conference. There is no
question before Europe that possesses
elements of greater Importance to the
prosperity, if not the peace, of nations
than the action which this conference
will take upon silver. India is in the
throes of commercial and industrial
convulsion on account of the deprecia-
ton of the value of the rupee, the mon
etary representative of all values in that
country. Great Britain is profting on
the gold basis as against the immense
losses OF her most extensive possession.
Can England afford to continue to dis
credit metal which constitutes one
half OF the hard money wealth OF the
world? We have seen that when the
Bank of England came to the rescue OF
the Barings it was discovered that there
was only 219 per cent of gold in Great
Britain to meet the 971a per cent OF de-
mands that were out against this Inn
pitesmal reserve. And had it not been
that the Bank of France was enabled to
lend the Bank of England fifteen mil
lions in gold there would have been such
a disaster in England as had never been
seen before. If this lesson is worth any
thing, it teaches that it is not safe to de-
pend alone on gold as legal medium
for all transactions.
But what will the conference do to re-
store silver to its proper position as
money medium? Can it establish legal
ratio at which the two metals will circu-
late on terms of equality? England and
Germany, the two great creditor nations
that hold the loans and the securities
of most Of the silver countries, are inter
ested in opposing the equality OF the two
metals on any ratio. But they incur by
80 doing such dangers that perhaps
they may be brought to agree upon
some plan. In the course of thought
full consideration of the subject by the
San Francisco Call, that paper says that
it is not so important what ratio may
be established as that one may be agreed
upon near enough to hold the two
moneys to whatever standard is fixed
"At one PERIOD" says the Gall, 1.-THE
true ratio, based upon the relative
cost of producing the two metals, was
fixed at 151a to !. 1t is contended that il
recent years the production OF silver i
relatively cheaper than the production
gold. The conference will ascertain,
possible, if this contention is true. an
if go, how much cheaper. 1t is bette
to have the ratio true and consequently
permanent than to have one NOR
favorable to silver at the risk of disturb
ances of values. 1t is expected tha
England and Germany will oppose an
action looking to the full remonetizatiol
of silver. They are creditor nations ant
will stand by their bondholders. Th
cheapeniDg OF commodities, in conee
| qence OF the demonetzation OF silver
adds to the commercial value OF fixeI
| incomes. What the bondholding clas
wants ia dear money and cheap 60 odf
Perhaps the zeal question before th
conference will be if Europe will join tn
United States in stand against the Eng
lish and German policy. Ii they will,
bimetallic union may be formed who's
silver money will be good in every ma
ton that becomes party to it. Such
union would be in commercial harmon
with all North America except Canada
all South America, all Central Americ
and all of Asia. 1t would seem that
there is any commercial isolation to re
suit from such union England an
Germany would be the isolated parties
But the influence of the money lender
of the world is not easily measured.
threat to withhold loans from countrie
that depart from the gold standar
might stand In the way of an agreemer
that would surely conduce to the con
mercial prosperity of countries that al
parties to it,
There is hint in this monetar
union that might bring the creditor ns
tions to terms if properly handled i
the conference. The threat to refus
loans would, of course, have weight
but if the borrowing nations get on thei
mettle and should determine to hav
the use of the two kinds of money,
would be the best thing that could hap
pen to those nations. In the long ru
they would be the better for THROWN
themselves on their own resources an
reducing their obligations, rather thai
to continue to pile up enslaving debt
against their governments.