The sun., 1897-09-17
Special cable Dsspatch to TIE sUS.Hll

OF the Rauk,s Governor on the Matter.
sp.ctar Gable Dsspatoh to TIE suNHn
LONDON. Sept 16.-At q meeting Of tho direc-
tors OF tho Bank OF England hold odny, Mr.
Hugh Smith, the Governor OF that institution,
said that among tho proposals by which Eng
land might increase tho use Of silver, and, with
out interfering with tho gold standard, enable
France and tho United States to resume the free
mintaRe Of silver. was one asking the bank to
hold In reserve tho amount Of silver permissible
under tho act Of 1874 as against notes. The
Government, he said had consulted with him
in tho matter and ho had written TO Sir Michael
Hicks Beach, Chancellor Of the Exchequer. on
tho subject In this communication ho had
said:
Referring to our conversation, beg to say
that the Bank of England 10 prepared to carry
out what Is laid down as permissible In the
banks charter, viz, to hold one-fifth OF the
bullion hold against tho note issue In silver,
provided always that the French mint is again
open to tho FREQ coinage Of silver and that the
prices at which silver In procurable and salable
arc satisfactory"
Tho Governor, in reply to question whether
there would be any depreciation or any change
in tho quality Of the banks reserve. said:
1--WE have had no negotiations with tho mono
tary commissioners from America. They are
negotiating with the Government. All that we
haVO 0On0 was 0DaIoO IN my lotJcT, uhuoiys
Under circumstances tho bank is not unwilling
to carry out what 10 permissible under tho aot
Of 1874"
Mr.. Smiths statement is not regarded as hav-
ing practical Importance in Wow Of tho rosorvar
tions It contains, but It has caused irritation,
based on o suspicion that tho Government has
induced the bank to take hand in politics. and
that, as tho Standard says, while "ridding the
Government civilly Of tho opportunities of tho
Mckinley Administration" tho bank has al
lowed itself to appear as toying with tho bimet-
allists.
The view takon in banking circles 10 that Mr..
Smiths note to Sir Michael Hcks-Beach was
merely civil reply to q Government communi-
cation, but objection is taken to even O discus
sion of an alteration In the basis Of the note
circulation. Tho latter part Of tho concluding
sentence Of the note is taken as meaning that
tho bank will require Government guarantee
against eny loss arising from holding silver.
At the Stock Exchange no Importance is at
tached to the discussion. It 10 understood that
tho French and American Governments arc cor
responding on the subject, but 1t 10 not antici-
pated that tho French mint will be reopened to
the free coinage of silver. The Bank Of Franco
already has $50 .oO0. 600 In silver, on which tho
depreciation has been moro than 90 per cent.
and 1t is not likely to lay itself open to such an
increase Of this stock as would forco the entire
| currency of the republic to a silver basis.
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