The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1897-09-17
ENGLAND AND SILVER
London Times Discusses the Bank
Of England's Policy,
A VIGOROUS PROTEST ENTERED,

The Times 1ntimates That the Admls-
sion OF "a silver Reserve would De-
tract From the Banks Prestige
Abroad-The Attitude of France.
London. Sept. 1.-THE Times. COM
menting editorally this morning on a
letter read yesterday by the governor
Of the Bank of England at the semi
annual meeting of the bank, says:
"As the same influences have been at
work I'm France as here i'm relation to
the currency reserve the reopening Of
the French mints is perhaps within the
limits Of possibilities though we doubt
whether the action of the Bank OF
England can be in any case a deter
mining factor.
"The second condition which the
bank imposes, the condition with ref-
erence to the price of silver, Is obvi-
ously more important An immense
responsibility would rest upon the bank
officials who must exercise the right
to decide what should be regarded as
a satisfactory price of silver
The editorial protests strongly against
the policy of the bank i'm having com
sented to commit itself, though even
thus limited and safeguarded Re-
peating arguments used I'm former ar
tlcles The Times says:
1--WE cannot assume that the admis-
sion of silver reserve would not de-
tract from the banks prestige abroad.
1t would be a very Objectionable course,
and not at all justified by the nego.
tiations of the ministry with tine Amer
lean commissioners and the French
government"
Taking credit for having practically
killed the plan the editorial concludes
with the warning that the campaign
will be continued. Leading French
statesmen are not wholly disinclined to
reopen the mints, while a vigorous at
tempt is being made to induce India
to adopt the same course. This should
not be done without serious constdera-
tion. In any case free coinage by
France, India and the United States
would not Justify the Bank of Eng
land in regarding silver as good as
gold for reserve. Therefore, the banks
offer can only encourage illusory hopes,
and the sooner it is allowed to lapse
into Oblivion the better for all con-
cerned."
Lord Farrer writes to The Times
this morning i'm part as follows:
81 learn from the best accessible in-
formation that a proposal has been
made to reopen the Indian mints to
silver, on The understanding that the
United States and France do the same,
at a ratio of 151a to l. The considera-
tion offered is that it will insure India
a permanent and steady exchange.
"Of course at that ratio this proposal
aDpears to me i'm the highest degree
Objectionable. First. because it puts
an end to an experiment which prom
ises to be successful Second, because
it affords the substantial prospect Of
giving a steady, permanent exchange
which there is every prospect of at
tanning if the policy of 1898 is adhered
to. Third, because if it did succeed
in giving a permanent exchange at the
ratio of 1512 to 1, which is most inn
probable. 1t could only succeed by arti-
fcally raising the gold value of silver
throughout the world to the same ex-
tent, thus introducing without the con-
sent of the British parliament all the
mischief Of international bimetallism
at that ratio"
The letter which is causing so much
controversy was one written by the
governor of the Bank Of England to the
chancellor of the eXchequer. The letter
declared that the bank was prepared
to hold one-ffth of the bullion held
against its note issue, in silver pro-
vided that the French mints were re-
opened to the free coinage of silver,
and that the prices at which silver is
procurable and saleable should be at
any given time satisfactory.