The times., 1897-09-17
BANK OF ENGLAND'S POSITION.
VIII Use Silver as Reserve Under
Certain rOnditisIs.


Certain GOiditfsTs.
London. sept. IT. At meeting Of
the directors Of the Bank or England
held today, Mr. Hugh Smith, the gov
ernor OF the institution said that among
the proposals hy whicn England InI.nt
increase tie use of silver and with
cut interfering WITH tie gold standard en-
aEe Francs and the United States to
Resume tie free nintage OF silver, was
one asking the bank to hold in reserve
the amount Of silver permissible under
the act OF i844 as against notes. The
goverimGnt, he said, had consulted him
III the matter and he had written TO Sir
Michael Hicks Beach, chancellor OF the
eNchequeT. on the subject. In this com
muniea tion he had said:
Il beg to say that the Bank of England
is prepared TO carry out what is laid down
AS permissible in the banks charter, name
ly, to hold one-fifth of the bullion held
against the note issue in silver, provided,
always, that the French mint is again
open to the free coinage OF silver and
that the prices at which silver is prUcura.
bic and saIea ble are satisfactory
The governor, in reply TO a question,
whether there would be any depreciation
any change in the quality of the banks
reserve. said: I'VE have had no negotia
tons with the monetary commiSsD Dnefs
from Ames ica, but they are negotiating
with our government. All that We have
done WAS stated ih my letter, namei y:
Under the crc umstances the bank is not
unwilling 10 carry out what is permissible
under tue act of 1644.''
Mr. Smith statement Is not regarded as
having practical Importance in view or
the reservations 1t contains, but IL has
caused irritation, based on suspicion that
the government has induced the bank TO
take a and in politics, and that, as the
Standard says, while 'ridding the govern
ment eivilly OF the importunities of the
Mckinley Administration, the bank has
allowed itself 10 appear as toying with
the bimetalsts.
The view taken in banking circles is
that Mr. SMITHS note 10 Sir Michael Hicks
Beach was merely civil reply to d gov
ernuent communicate ton, but objection is
taken to even discussion of an altera
ton in the basis of the note circulation
The latter part OF the concluding sentence
OF the note is taken as meaning that
the bank viii require Government guar
silver
AT the stock exchange no importance is
attached 10 the discEssion. 1t is under
| stood that the French and American gov
ernments are corresponding on the sub
ject. but ii is rot anticipated that the
French mint viii be reopeneG to the free
coinage OF silver
The Standard publishes an angry edito
| rial on the subject.
| While admitting that Mr.. Smiths letter
| does not endanger the currency, it calls
it fatuous blunder. 1t proceeds:
why on earth should we help the
| United states out OF their currency dilemma
at the expense Of our credit? Have they
| ever shown the least desire to help III
| In anything? Do not their politicians
! fIout US as they place endless obstruo
/ tons in the way Of our trade with their
country? It would be interesting to
! know what Sir Michael Hicks Beach
i said To this childish proposition OF MI
Smiths"
sir Michae. Hicks Beach is known to be
a strong rnonoiaetailist.
The Daily News says there may be
| diplomatic reasons for showing polite
attention to the views OF the French and
AIHrricgn governments, but, Judging from
| the small effect produced, no important
step las been taken.
The Times, after seeking to reconcile the
misstatement IN regard to the Bank oi
| England made last Saturday by CORE
| spondent in whom it expressed its conf
| dence, ana the proposals made by Mr.
| Smith, protests against the policy the banb
has consented to adopt, even as thus lin
tied ana sareguarded.
1t maintains that the introduction OF Z
dubious element ike silver is not justified
by the negotiations between the ministry
the American monetary commissioners ant
the French government. 1t says that i
would appear that the leading statesmen ot
France are not wholly disinelned to reoper
the French mint to the coinage OF silver
and that vigorous attemptis being made
TO induce the government Of India to con
sent to the reopening OF the uints in tha
country
The Times prints letter from Mr.. Far
rar, IN economist, protesting gainst tn
proposal of the American commissioners L
reopen the Indian mIuts for the coinag q
Of silver on the understanding that tn,
United Statee and France oEen their mint!
to free coinage of the metal at the ratic
cf 15 IL TO /. He says that such pro
posal has been before the British govern
Inent II some time. In its financial artici
The Times admits that the Eank OF Eng
lands conditions are regarded dln,os
prohibittve, but says it is nevertheless fel
that the matter requires TO be cleared VI
as thf banks offer Is still apparently open
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