Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-09-17
Newspapers Agitated Over Hugh
Smiths Letter on Silver.
HlS ATTITUDE GENERALLY CONDEMNED
Old Lady Of ThreadneedIe Street
Accused of Financial Filtration.
NO SILVER RESERVE WANTED

| LONDON, September 1.-THE Westmin-
ster Gazette this afternoon in it's financial
article comments upon the letter of the
governor of the Bank of England, Mr..
Hugh c. Smith, to the chancellor of the
exchequer, Sir Michael Hicks-Beach, an
nouncing that the bank is prepared to
carry out what is permissible in its char
ter namely, to hold in silver one-flfth Of
the bullion held against it's note issue,
provided always that the French mint is
again open to the free coinage of silver
and that the prices at which silver is pro-
durable and salable are satisfactory. The
| newspaper mentioned says:
| although the governors statement is.
perhaps meaningless so far as practice is
| concerned, it is to be deeply deplored that
| the bank has budged from its principles.
1t is not dignfied for the old lady of
| ThreadEeedle street to firt with the bimet-
| allie faddistS. We want gold against our
notes, and there is reason why an old
statute, passed when silver bore ell
| tirely different character. should be refur-
| biShed at the bidding of those who want
| 10 dispose of silver. The banks reserve
| is not SO large that it can be tinkered with
| Moreover, by yielding in these matters of
| principle we open the way to the thin edge
| OF the wedge. If the threat is carried out
| what would happen is exempified by the
statement of trustee, who declares he
| would feel compelled to sell his bank stock
! ana SO close a risk.
| ST. James GaZette's Comment.
| The St James Gazette says on the same
subject:
| The scheme seems to be knocked on the
head for the present; but the reception of
| even this feeble announcement in the city
| will have an effect anything but favorable
| TO the bimetallists. A substantial element
| or Indignation arises at the feeling that
the government and the hank have been
| din1nn7a at
| ana for the advantage of Americans. The
| United States has done nothing to make
such risky politeness TO the silver men on
| our part popular in this country
| The Globe, joining in the discussion this
afternoon. has this to say on the announce
ment OF the governor of the Bank of Eng
| land:
The whole scheme is innovating and
| mischievous. 1t seems to us wholly I'M
desirable and even perlous to subject our
monetary system to foreign influence
| through the government. If, as should have
| been done the proposals of the United
| States and France have been handed to the
| directors without official recommendation
or pressure, it can scarcely be doubted that
the directors would have firmly declined
| to further the project
Protest of the Thunderer.
The London Times, commenting editor
| tally this morning on the letter. SAYS:
las the same influences have beer at
work in France as here in 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 determining factor
THE second condition which The bank
| imposes, the condition with reference to
| the price OF silver, is obviously more i'm
portant An immense responsibility would
| rest upon the bank officials who must ex-
| erclse the right to decide what should be
a 70.
| The editorial protests strongly against
| the policy of the bank in having consented
| 10 commit itself, though even thus limited
| and safeguarded.
Repeating arguments used in former ar
| tlcles the Times says:
we cannot assume that the admission
OF a SILVER reserve would not detract from
the banks prestige abroad. It would be a
very objectionable course and not at all
JCstl1ed by the negotiations of the ministry
WIN the American commissioners ard the
french government
Taking credit for having practicable k;Ila5
the pan, the editorial concludes with the
! warning that the campaign will be con-
| tinued. Leading French statesmen arc
| not wholly disinclined 10 reopen the minis
whlle vigorous attempt is being made to
mduce India to adopt the same course
nus an,s should not be done without serious
| consideration In any case free coinage
by France, India and the United States
| would not justify the Bank of England in
regarding silver as good gold for re-
a m
encourage illusory hopes ana the rcCnar
It is allowed to lapse into oblivion the bet
ter for all concerned"
Views of Lord Farrer.
LORD Farrer writes to the Times this
morning in part as follows:
learn from the best accessible :nfor-
nation that a proposal has been made IN
reopen the Indian minis to silver on the
understanding that the United States and
France do the same at a ratio of 15Is tn
The consideration offered is that it will in
sure INDIA permanent and steady ex
change.
"Of course, at that ratio this PROPOSAL
appears to me in the highest degree Oh
Jectionable. First, because it nuts an end
! to an experiment which promises tn he
successful; second, because it affords no
SUBSTANTIAL prospect of giving a steady
permanent exchange. which there is every
prospect of attaining If the policy of 1Sia
Is adhered to; third, because if it did sue
ceed IN giving permanent exchange at
the ratio of 15ls to /, which is most i'm
propapie, II could only succeed by arti-
ficiaily raising the gold value of silver
throughout the world to the same extent.
thus introducing, without the consent of
the British parliament, all the mischief of
international bimetallism at that ratio"
Lord Farrer promises on a future occa-
sion TO give his reasons for these conclu-
sions, adding that as the proposals have
been for some time before the government
be drawn to them.
Absurd and MfscheviOus,
The Standards leading editorial deals
with the letter Of the governor of the Bank
OF England to the chancellor of the ex-
cheQuer, and says: IA more absurd and
mischevious letter has seldom been penned
by man In a position of high response
bility. 1t may be assumed that the uues-
ton was put as one means of Kidding the
government civilly of the opportunities of
the Mckinley administration, for Sir Mich
ael Hicks-Beach is neither a bimetallist nor
a man of weak character
10 SUCH request, whatever its motive,
there can be but one straightforward,
manly answer: Namely. that, as the bank
has promised to pay all its notes in gold.
IT could not admit silver into its reserve
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