The indicator., 1897-10-09
BRITAIN AND SILVER.
TWO SIDES TO THE QUESTION.
Great Industrial Center~ Outside of LONDON
and the LAboring Elements eehe'y
Heartily In Favor of biWe'Ais"'

spondent says:
1t is about time for Senator Wolcott,
Adlai Stevenson and Mr., Payne, our
bimetalIic ambassadors to Europe. 10
receive from the Marquis of salisbury
a final answer to their invitation to
monetary conference and their ap'
peals for some concessions from Great
Britain in behalf of silver. In July
last his lordship the British premier
gave Colonel Hay and the French am
bassador to understand that the Brit
ish government would no longer CON
tinue It's stubborn opposition to the re
monetization of silver and assured
them that he would send delegates to
n conference with definite instructions,
which might not be entirely satisfac-
tory. but would at least be gratifying
to the friends of the white metal. Sew
eral propositions We're suggested ana
discussed, but definite answer was
deferred until the government In India
could be consulted. In the meantime
an emissary was sent TO Calcutta and
Bombay. who should have returned
before this date and the United States
commissioners have returned to Lon
don to receive the communication that
was promised in October
The three principal propositions that
We're discussed during the summer, and
referred to In "A letter from London AZ
that time, were a. the reopening of the
Indian mints for n limited amount of
coinage; ~ the retirement of the 10
shilling gold piece of British coinage,
and the issue of corresponding
amount Of silver in it's place and 81
the withdrawal of one-fifth of the gold
reserve of the Bank of England and
nf
1t is not proposed to open the mints
of India to the free and unlimited coin
age of silver. but financial and com
mercial affairs in that great empire are
so unsa tisfactory and there IL so much
discomfort with the present fiscal con
ditions and policy that something must
be done to increase the volume OF cur
rency. Public sentiment is In favor of
limited amount OF silver coinage
annually-say f3O0O,0OO or "a 1000, 900
but the India government Will not re
open its mints without the support of
other nations. and will require an
agreement with the United States.
France, Belgium. Italy and all the
members of the Latin union that they
VIII reopen their mints also to n limit
ed coinage and assist in maintaining n
fixed and stable ratio between silver
and gold. The mints OF India Were
closed because this could not be Sc
cured. and before they are reopened
there must be a permanent agreemnt,
or an agreement for term Of years, to
take effect simultaneously and include
several nations.
There is no objection among the Lon
don business men to the resumption of
silver coinage in India, provided the
amount is limited. Nor is there any OBJ
lection to the second proposition, be
cause the bankers admit that the little
1O-shllling gold piece is n nuisance and
constant source Of loss. The abra-
sion Is much greater than with larger
money. The coin is so small that 1t is
easily lost and overlooked; and 1t will
slip through crack that is not much
wider than hair
But the proposition to replace one
fifth OF the gold reserve of the Bank of
England with silver bullion, even II 1t
were purchased at current rates. awoke
storm of protests from the direction
of Lombard and Threadneedle streets
which has already been reported in
your cable dispatches. In order to
draw fire and accustOm the public to
the idea, the Marquis OF Salisbury, ac-
cording to his usual habit. threw out
the London Times. Then the chancel-
lor of the exchequer addressed a letter
to the governor Of the bank. Then the
governor of the bank wrote reply,
in which he said:
.1he Bank of England is prepared
to carry out what is laid down as per
missible in the bank charter. viz: To
hold one-tifth of the bullion held
against the note issue in silver: pro-
vided. always. that the French mint is
again opened for the free coinage of
silver, and that the prices at which sill
yer is procurable and salable are salts
factory"
The publication of this note made
profound sensation in financial circles
1t was the first tangible evidence that
the government and the banks intend
ed to do what the newspapers had pre-
dicted. A unanimous protest was re
ceived from the clearing house. the
stock exchange and several other finan-
cial bodies. Some of the strongest cor
porations In Great Britain. whose
transactions amount to millions of
pounds "A month, gave notice that they
would withdraw their deposits from
the Bank of England If 1t admitted sill
yer bullion into its vaults or disturbed
its reserve in any manner
To console these critics the governor
OF the Bank of England replied that
his consent TO the proposition Of the
government. as would be seen from an
examination of his note. was based
upon conditions that could not be full
filed. There was no possibility of the
free coinage of silver at the French
mints. etc The excitement was al
layed, but the apprehcnslons of the
public were not satisfied, because the
propositions of the Marquis of Sails
bury are sustained and commended by
the labor unions. several manufactur-
ers' associations and many manufactur-
ers and merchants who are engaged
in trade with India. South America
Mexico and other silver countries. The
newspapers of Birmingham. Manches-
ter. Sheffield and other great Industrial
centers are hearty in their applause for
the new policy. and outside OF London
it is quite popular. Public sentiment In
favor OF n bimetallic currency has been
growing rapidly for the last few years
through the industry OF the Bimetallic
League, which has been doing some en-
ergetlc missionary work. and the labor
ing element in England, as In the
United States, Is in favor of anything
that promises to make money plenty.
This is the secret of Lord Salisbury's
conclliatory disposition. He fears the
result Of discomfort In India and Eng
land and thinks that 1t may be allayed
by concessions to silver.
The Leutgert Case.