New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-20
THE MONETARY QUESTION
AFTER THE FAILURE OF THE BRuS>tL>
CONFERENCE.
A LETTER FROM DIT. GErFcKEN.


possible TO put some stop to the depreciation oil
silver, OF 10 give increased circulation 10 that
metal. has proved as barren as its several prcde-
ccs-ors see that Senator Allison does not share
this opinion, having assured an interviewer
that when tie conference meets again In spring
something serious will be done. 1t would pe
more 10 the point if the Senator could have given
some hint what this something mieht he, as lie
himself has admitted that the only formulated
proposition Which was brought before the con
ference that OF Baron Alfred RoihschIld, has
been acknowedscd as impossible. BET go
farther, and venture TO say that the conference
Will not meet again in the spring many o. me
Governments who sent delegates 10 Brussels, had
accepted the invitation only for poitencss sake
their representatives were instructed simply 70
listen and to take an acadcmcal part in the dis
cusslon but rot 10 enter into any engagement
whatever. Among these were foremost countries
which. like Germany, having the gold stan lara,
and being firmly resolved to maintain II, are not
inclined TO experiments for raising the value OF
a deprecated metal, in which they have little IN
tcrcst. Senator Allison may depend upon II,
these Governments will not take part in re-
newed conference after the failure Of the first ana
the best proof Of this seems 10 lie in I'll" fact mat
General Sherman has moved although. a yet, with
which raised the number of ounces to he purchased
monthly by the United states Government 70
four and half millions The father Of this
measure would not have proposed to do away with
it. if he was not convinced that nothing is 10 IN
hoped from a most Irobematic international
meeting
IL il, Of course, free 10 convinced bimetalli'fs
TO say. as General Sir G.. Chcsncy has done IT, Nine
tccnth Century," January. p ll6l: THAT the sup
por.cis Of that creed have cause for dcspon-
dcncy. that the doctrine is making its wey a.
quickly rs can fairly he expected, and that Of the
two classes to rcnkoned with-the persons who
understand the subject. and those who do not
the former have now become bmetallists But
such apodictic assertions prove nothing. and the
honorable General further himself acknowl-
edges But Eimetallism is impossible for IN"
present" We take account Of this admission and
leave the author TO his belief that the future will
some day belong to bimctallism the fact which
alone concerns us is that there is now no chance
| OF a universal international treaty regulating the
monetary relations Of the world. which, as bimetai
lists admit. would bc necessary for establishing
fixed ratio in tho value of gold and silver.
But if such compact is impossible II may
not he without interest 10 stat' shortly what il
the present monetary condition Of the principal
States. We NAV omit 10 take into closer consid-
Grafton those countries which, in fact. have only
deprecated paper currency. ana where, cons'-
qrently, gold commands a high premium. the
only one of this clase which deserves special ~.
tcntion i Russia, which, although the paper
ruble is only worth two-thrds Of it, value and i
inconvertibic. has amasSnd gold 10 the amount
Of more than S4o7 600. 900. Tho reason lately
alleged by the Finance Minister Won Witte. that
this sum shall serve security for the notes.
Is not very plausible. neither The ENchc1ucr nor
the banks exchanging notes for sod. II l. ext
IDENTIFY large fund for future war. in which case
Russia would find it difficult TO raise th, gold
necessary for her foreign liabilities From th"
monetary point of view this hoard has it, i'm
portancc in the fact that such large sum in gold
is imnobilizcd and Withdrawn from circulation.
The greatest contrast 10 countries with a de-
precatcd paper currency is Offered by thos" having
the pure god standard. Enzland here stands
first. any liability exceeding e. being payable
in gold or Bank Of England notes. which legal
tender, but must he exchanged in gold at de-
mand The sum of gold kept BY the banks and
the public Of course varies somewhat. At pres
| ont il is estimated AT about ll5 to 40 million
pounds sterling.
Germany is in the same situation with gold
circulation Of about $500, 900. 900 marks lSs2j,
600 OOO) IL s true that besides the silver
which. as in England. serves token money.
Germany has kept II 90 600, 600 in It's old thalcrs
"a thaler equals marks. This is the consequence
of Bisnarks unwse measure Of stopping the sale
Of thc silver in order 10 prevent a further de-
| probation of that metal which was not attained
| However that sum j. not large enough 10 affect
| in any way the gold standard Denmark. Sweden
and Norway hnve also adopted tho latter. but
| have watcrcd it with much paper currency. 30
| ,lo ycly in
| lation. and The existing sums are pretty cXcln
| sivelu kept by the banks. Much better stands
| Rumania. II has sold al toerabl" prices its
| supcrfuoms silver tabout 81 900, 900. and tn"
central bank az Bucharest now keeps 81 100000
| in gold, 80 that the gold standard seems fairly
well established. Austria-Ilungary j. on the "v"
Of passing 10 il both parts OF the monarchy have
| for that purpose amasscd fund Of about 81 TO-
! o00. 600. and arc converting an their former )
! per cent loans in paper and silver into \ per
| cent gold rCntes. The conversion and first gold
| loan have beer fairly successful, and unless
there should be some unforeseen disturbance. the
| operation will he carried out. The on'v question
| /. whether the Government will be able not only
10 get tie nccossarr gold for filling the channels
Of circulation. but T. keep il; any political com
| pcation might compromise the enterprise On
| fine other hand we have the countries which.
| like China and India. have Ill" pure silver stand
ard. and will certainly keep il for an indeint"
future. or China this is perfectly slre but India
would also have the greatest difficulty in passing
to another system. in the Internal trade the
rupee has not lost it, purchasing power, AMI Sill
ycr prices have but slightly risen. This is easily
accounted for when we consider the great mass
of the currency already accumulated in that coun
! try and the enormous population over which IT
! l. distributed Resides, the large import of sill
yer from Europe disappears in the hoardngs of
tie people: 80 that if India had alone to be con
sidcrcd it might bc left to itself Bnf the Indian
Government occupies th" singular position that
! while its revenues raised in silver 1t mas
large liabilities in the way Of COLL payments, first
for the interest OF the debt raised in England for
public purposes and for the guaranteed railways.
then for n large part Of its military expense Tor
| salaries. pensions. etc. Altogether an amount