The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-07-27
this and to introduce into India gener- |

| this and to introduce into India gener-
ally a system Of money analogous to
| the system which prevailed in Europe:
| With this object in view, they declared
| that after a given date COPIED coins
| should cease to be legal tender for
more than a very limited sum, and that
| all other contracts and obligations
! should be discharged in gold or silver
! coins.
Innocent as this decree appeared to
| be at the time, it occa stoned such
| tremendous drain upon the metallic re-
| sources of Europe as to bring about the
| failure of the Bank of England, when
| for twenty-four years-namely, from
| 1897 to 1S22-was unable to redeem IT'S
notes in coin. These effects did not stop
here, for England, being a creditor
country, was enabled to draw upon
other countries for metal. and the con-
|! sequences We're as far reaching as the
boundaries Of the commercial world.
This drain was undoubtedly aggravat-
ed by the plumber Of the French armies
in Europe; but even without this the
drain TO India would have been suf-
ficient to bring about most of the con-
sequences which are to be observed OF
that period.
drain of the precious metals from the
United States. and this was followed by
the suspension of numerous banks
throughout the country.
Between 1914 and 1925. nearly all the
private banks of issue in the United
States stopped payment. owing to the
drain of coins to supply the Bank of
England, which in turn had been drain
ed by the flow of metal to India. You
viii all da- 1c in, a
Albert Gallatin. Mr.. Crawford, and 9TH
er secretaries Of the treasury of that
period.
THE point to be observed is this. that
such a change from a, copper TO a preci-
Gus metal system of coinage in India
during the last century caused such
flow of metal to the eastward as TO
which had London for their common
center
$50 the drain of the precious metals
to China, which now threatens to be-
gin, will, in like manner. though per-
haps not to so great an extent, exercise
an injurious influence upon the metallic
resources of the western world.
Down to the present time China has
struck neither silver nor gold coins.
Some exceptions to this rule will be
found mentioned in my History Of
Monetary Systems recently published
by Brentano, but the exceptions only
serve to prove the rule. There are
very few millions of dollars in Mexican
and other foreign coins circulating in
the treaty ports. and there is small
amount of silver metal in ingots, which
is used by the revenue farmers for pay
ments into the imperial treasury, but
this soon finds its way back again and
it circulates no further.
The estimates of $500. 600. 900, or $780,
0G0. 900 of silver coins or bullion circulat-
ing in China, which appear in the re-
ports of our director of the mint. are
totally imaginary and have no basis
whatever in fact.
1.-The two American travellers who re-
Gently wheeled their way on bicycles
drought the heart of China are among
the witnesses who report that in the in
terror of the country no silver or. silver
coins are met with but that all the pay
ments are made with copper cash.
IF the European gold trusts have i'm
posed upon China a silver currency, the
fact will do much to negative those
beneficial influences which are expected
TO be derived from the remonetiza ton
of silver in the west If they have i'm
posed upon her a gold currency, it can
scarcely fail to occasion a very severe
strain upon western reserves, even
though the metal itself may not leave
Its European repositories. If they have
imposed upon her mixed currency of
gold and silver coins. its effect can only
be foreseen when the details of such an
are made public.
Under any circumstances the pros
pect is filled with grave consequences.
and 1t is deeply to he regretted that the
states of the western world have been
so imprudent as to jeopardize the sta
bility OF their monetary systems by
leaving them so wholly at the mercy Of
a European gold trust
Mr.. Delmar will sail on the Fuerst
Bismarck tomorrow, or on the Cam |
pania on Saturday. for Europe, where !
he intends to continue an exhaustive |
of the financial situa ton. |
He expects to return to the United |
States next October to take part in the |
of the money question.