The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-12-26
A BIMETALLIC EXPERIM ENT.

The British Parliament some days ago
authorized The Indian Government to bor-
row csc, 600 to meet obligations maturing
before the first of March. Following in
the footste ps of the English, Secretary
Carlisle asks for authority TO borrow
$500, COO 900 10 broaden the metallic basis
OF cur currency. There is another point
IF resem blance between the condition in
India and that in the United States. Both
have large stacks of silver, which the law
has denoneiiZed. To use this silver 10
buy gold with at the present rates between
the tWo metals would entail great lUsS.
Most English journals consider the
financial situation one that England must
fud way out of on the gold basis. The
Mauchester Guardian. however, ventures
to suggest an experiment in the way Of
bimetalism. That journal says that Eng
land, the United States and India have
the ability 10 solve the financial problem.
If these, then, will agree upon ratio at
which the silver dollar and the gold dollar
shall be Interchangeable. the rest of the
world would conform 10 the standard
The value OF the Guardians suggestion is
somewhat IMPAIRED by the lact that Eng
land is the principal stun bling-b block IN
tie way of an international agreement.
There is a way, however, TO bring Eng
land to take more tolerant view Of bime-
tallism. DR.. GsOrge e. Douglas, in the
December arena, divides nations with re-
spect 10 silver into three groups. Great
Britain, Germany, Portugal, Turkey aud
EgyGt are placed in The absolute gold
groups. Austria Hungary, Denmark. Swe-
den and Norway are now on the gold
basis. but are susceptible 70 the influence
Of commercial considerations. The third
grouU comprises the rest OF the world and
is either on bimetallc or silver basis,
Both France and the United States are
practically On the gold basis, though
strongly inclined to bimetalllsm. The
proposition of DIR. Douglas is Tor
the United States to give preferential
trade advantages to nations adopting BIZ
netalllsm. He enters into close analysis
of the trade of the several countries With
the United States, and on this basis con-
cludes that the United States might
quickly draw all but the front group to
her standard and that The first group would
follow little later on. England is now
bimetallic, living by supplying the United
States and other silveT-uslng countries
with manufactured goods. She requires
payment in gold. She buys raw material
of India ana other sllver-using countries
with silver and sells them finished goods
for gold. DIR. Douglas argues that If the
United States should charge one rate of
duty against gold countries and lower
rate against countries that accept our
money standard, the English market
would be greatly curtailed. In time her
statesmen would discover that there is
something in the world more valuable
than the profit made by increasing the
money value OF credits. The Eastern gold
papers have not contributed 10 the clrcu-
latlon of DIR. Douglas scheme. Probably
they DO not consider ii practicable. They
| have followed England's lead so long that
they see no other path than the one she
has marked out. But there is an idea in il
which may yet bear fruit.