Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-11-21
Moreton Frewen Makes Some Be-
markable Suggestions.
VIEWS OF An ENGLISH BIMEfALLIS2
The Mexican Dollar Might Be a
Blessing to the West.
SUFFICIENT CURRENCY

cd head of European bimetallists, and is a
man of worldwide note. He was seen by
Star reporter today, and discussed the
question. He talked of the Russian cur
rency reform proposals. the Indian famine
and the Kansas proposal to give currency
to the Mexican dollar. The latter question
was gone into at some length by Mr..
Frewen.
|, Mr.. Frewen makes some startling pro-
posals, one Of them being that silver states
could use all the silver they wanted and
gold states stick by gold.
Asked where he thought the defeat of
Bryan left silver. Mr.. Frewea said:
Much where it has been. 1 suppose. at
any time during the past twenty years.
Every nation waiting for every other ma
ton. The position OF the metal itself at
the present moment shows the hopeless
mess into which the worlds exchanges
have drifted. No one can tell whether in
the coming six months we shall have q
great fall, or, on the other hand. great
rise, in silver. The Russian currency re-
forms require that Russia shall pay out
gold for some three hundred million ounces
of silver in order to cancel five hundred
million small rouble notes and to issue in
their place five hundred million coined sill
roubles. Such a demand might keep
silver at near its old par for years 10
come. On the other hand, India Is threat
ened with a very serious famine, which
may depress silver terribly.
India and Silver.
What is the exact relation between a
famine in India and cheaper silver? You
see. IL India has plenty of produce to export
wheat cotton, jute and other things-the
balance of trade is favorable, so that India
is a large customer for her money metal,
silver. AS matters stand, however, India is
importing wheat. and therefore exporting
silver to pay for the wheat. If the famine
is serious, as l fear. 1t may affect the ex-
changes, not only with India, but with
China and Japan; the cheaper rates for sill
yer greatly stimulating the exports of both
these countries. With the Japanese yen
exchanging, as today, for about ten for one
sovereign instead of five for one, the posi-
ton of Japan as manufacturing country
is immensely strengthened. You here will
require very high tariff. indeed, against
Japan-Japanese silks, bicycles. umbrellas.
coal-a thousand things. If your dollar,
which used to give the Japanese exporter
to San Francisco one yen only. and which
now gives him two yen in exchange, is
presently to give him three yen. 1t is not
poss BILE that manufacturing industries can
be built up on your Pacific coast, no matter
how high your tariff, 50 long as the present
cheapness of silver gives A bonus OF lm
per cent on every export across the Pa
cific from Japan, China and the Malay Pc
ninsula."
Mr.. Frewen's opinion of the proposal Of
the Kansas populist legislature to legalize
the Mexican silver dollar was asked, and
his reply was:
Would it be constitutional? l don't
know. But without attempting to make
Mexicans legal tender, l have sometimes
thought that If your twenty-five silver
states chose to make the Mexican dollar
current within their states, by general
agreement. such silver currency might be
very useful. If the state legislature in
states occupied by perhaps thirty millions
of your people said We will take our local
revenues. and will also pay our employees at
the rate of three Mexican dollars for two
standard dollars then. if the bimetallic
theory Is correct the ratio of Mexican dol
lars to standard dollars. today as two to
one, might probably rise to three to two.
The increased use of and demand for silver
would raise its price, just as its 'outlawry,'
as poor Dana Horton used to call 1t, has
reduced its price,
But two separate currencies in single
state. say Missouri, would be very incon-
venient, would 1t not?"
Not very. L think. The Inconvenience
would be only temporary; it would last
while Mcxicans were moving in and stand
ard dollars we're being displaced. Shop
keepers would quote prices still in stand
ard dollars and add one-half in case the
buyer rendered Mexicans. Bankers in the
same way would keep a second set of en-
tTleS LOT tnelr 0epOSltOrS.
But would Mexican dollars find a footing
If they were not expressly enacted legal
tender?''
''Oh, yes; if the several states accepted
them and II the sentiment in the locality
was strong behind them. Money finds a
footing less because of law perhaps than
because of custom. Remember, the Mex
lean dollar is the money of Il great part Of
China and of Malaysia already. The In
dian rupee again is the money of Singa-
pore, of Ceylon and Of the east coast Of
Africa: not because such coins are legal
tender, for they are hot The same is the
case with the English sovereign abroad
III you had MexicanS current IN the south
and west there would DE plenty of cur
rency for your gold standard states in the
east and prices in those states would rise.
In fact. you would have exactly the same
currency system which we today Rave in
the British empire-a system which l I'M
derstand some of our New York friends
greatly admire, namely, silver in the
greater portion and gold in the smaIler-a
system this, not of monoEletallisr but of
unrated bimetallism-a system too that
at least does not hurt the silver-using nor
ton" f
Thinks 1t Would Work Here.
Mr. Frewen was asked if he thought
such a scheme would work in this country
silver states to use silver and gold states
to use gold. His answer was:
40 not know; perhaps it would work:
yes, L think it might. 1t does better work
as between England and India than gold
monometallism would, and if Colorado and
Texas become. as it We're. states of Mexico
LOT currency purposes, using the open mint
OF Mexico to coin their silver for them
they can rave free silver and cease to
worry New York. Ard If Mexico and
Japan and India get. as 1 believe they do
get, great advantage in exporting to gold
Anc1ard a"inin!: ,-.s'. h@..rusc- of low
silver exchanges, then equally Colorado
ard Missouri and Louisiana would benefit
In exporting not only to gold standard
Europe but to New York or to Chicago
In any case the project would remove
the serious objection in the past to free
silver. 1t could hurt no creditor; it could
involve no gold premium. such as most
people fear In the case of free coinage
here. 1t would on the other hand raise the
price Of silver by charging the monetary
USE CT silver. and in doing this would raise
the exchange rates with Asia and South
America. thereby stimulating the exports
of Jour country as whole, and tending to
improve your balance of trade. The one
and only trouble today with this great
country is that cheaper silver helps the
Asiatic exporter. and thereby cuts into
your exports. If silver were but fifty -per
cent higher-if the rupee, that is were at
twelve to the sovereign, instead OF eigh-
teen-then 1t seems to me prosperity would
clotEe you at once" -
Ill-Health Caused Suicide.