Middlebury register. (Middlebury, Vt.) 1886-1937, 1896-09-18
L. ON SILVER.


soon resume the free coinage of silver.
The Chinese statesman talked finance
and tariff with prominent American
parsonage who gave it as his opinion
hat within the next twelve months the
iull reconciliation of silver would take
place.
This Information pleased Ii Hung
hang, because he sees in the prospective
advance in the price of silver and the CO.
ordinate reduction in the purchasing
power of gold, a great advantage to
china, which has now that greatest
z blessing of Western civilization, a bond
. I'd debt, interest and principal payable
gold.
TO ii Hung Chang the free coinage of
A liver does not appear as an advance in
he price of silver, but as reduction in
he price of gold. The principal money
METAL of China is silver. Silver has re-
NAMED practically stationary in China,
Is measured by the general level of
prices, while gold has steadily advanced
or the past twenty-five years. There
. ore any change in ratio between silver
. Ind gold due to the free coinage of the
Former is not expected to materially
hange the purchasing power of silver in
II the vast internal commerce of China,
amounting probably to more than one
hundred times the volume of her foreign
commerce. But on her exports OF tea
Ind silk, and her imports of cotton and
European and American fabrics, the
efect would be visible, marked and i'm
mediate.
E. B. Drew. of the Chinese imperial
maritime customs service, who accom-
'Danies Ii Hung Chang, furnishes the
Journal with the following summary of
he effect on China of the fall in the price
! ilver, or, as it should be viewed from
he Chinese standpoint, the rise in the
price of gold:
First--No material effect on the gener-
/ level of prices of articles produced and
consumed in China is noticeable from the
Increased ratio between gold and silver.
SecOnd-There is tendency toward
general rise in the price of articles of
hinese production exported largely to
gold basis countries.
Third-There has been marked slim
Illus to exports from China to gold basis
countries in excess of imports from
hose countries.
FOurth-There has been notable in
so in trodn battUaa0 ( biOo q MI TpJ;o
both of which are silver using countries.
FREE BANKS" IN CHINA.
"China will probably never be great
DISORDER of silver, such as india has
been from time immemorial, continued
Ilr. Drew, ION account of its peculiar
banking system. In China banking is
perfectly free. Any one may start a
bank and issue notes freely and without
supervision or restraint. The private
bank notes are good wherever the bank
Er's credit is good, and undoubtedly
here is an enormous volume of them
float, as they fill the place which pr-
Fate checks and paper money do in the
'nted States.
There are no statistics as to the num-
per of these banks or the amount of their
lote issue, but they serve the purpose of
uprlying an elastic and automatic cur
ency. The amount of silver back of
hese note issues is comparatively small, |
md the native system of exchanges is |
uch that no great amount of bullion is |
needed.
1T should be clearly understood that
both gold and silver are merely bullion in |
china. Neither is legal tender by gov
ernment edict, as you understand the
erm. Either is rendered in settlement
Of debt, according to which is express
I'd in the contract. The Chinese mer-
chant has never clouded his mind with
he western idea that the exchange of
1ne product, which may be tea, tor sill
yer or gold, which are merely other pro.
lucts, is anything but barter"
II ASKS CARLISLE ABOUT SILVER.
To return to Ii Hung Chang. When
he interviewed Secretary Carlisle he
asked him numerous questions, and the
substance of these questions and Secre-
tary Carlisle's replies has been obtained
from thoroughly reliable informant.
1.-The United States is large producer
If silver, and, therefore, interested in
having it bring good price" remarked
Ii Hung Chang. GLOW do you expect
% have it bring good price if you do
lOt coin it yourselves?"
Secretary Carlisle thought oyer this
for a moment and then replied slowly
IF England would agree on basis
we could quickly resume the coinage of
silver. But there is a probability that
there will soon be free coinage of silver
England agrees or not"
"Will gold get any cheaper" asked III.
There Is good ground for believing
hat il will " was Mr. CarIislp's rnsnonso