The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-17
THE SILVER QUESTION.
What the Bank OF England Has
Agreed to Do for White Metal.

Agreed to Do for White Metal.
LONDON, Sept. 16.-At the semi-annual
meeting of the Bank of England to-day the
governor, Hugh c. Smith, said: You are
probably aware of the proposals laid before
the government in the summer by the
United States and France whereby this
country might increase its use of silver as
a contribution TO an international agree
ment WHICH, while not affecting our gold
standard, hnight enable the minis of France
and America to resume free coinage.
Among the proposals was one asking the
bank to hold the amount of silver per-
missible under the act of 1874 as against it's
notes."
The governor then read a letter, dated
July 20. addressed to the chancellor of the
exchequer Sir Michael Hicks-Reach. 1t
was as follows: Referring to our CONVEX
sation we beg to say the bank is prepared
to carry out what is laid down as permissi-
bic in the bank charter, namely, to hold
one-fifth of the bullion held against its note
issue in silver provided always that the
French mint is again omen 10 the free coin
age of silver, and that the price at which
silver is procurable and salable are salts
factory.
Replying to questions the governor said
the bank had no negotiations with the
United States monetary commission, add
ing: I'VE have bought no silver. All we
have done is to agree, under certain cir
cumstances, TO carry out what is permissi-
BILE under the act of 1874"
The letter caused surprisingly little COM
ment in the city and did not affect silver
stocks. Great satisfaction, however, is ex-
pressed at the headquarters OF the Ri
metallic League. The secretary of the
Bank of England, Mr.. George E. Glenny
when asked ii the action of the Bank of
England depended upon the reopening of the
India minis replied: THAT is a political
question and does not concern us" The
bankers of the city are surprised ard dis
pleased
Manager Ross, of Glyn, Mills, Currie &
Co, ardent supporters of the gold-standard
defense, voiced the opinion of the bankers.
lie said the letter, with such qualifications,
does not pledge the bank to anything. and
its only effect will be to encourage the BIZ
metallist agitation. If the plan was car
ried out II might raise the price of silver
temporarily. which would be followed by
reopening of the American minis, overIro-
duction and another fall in the price of sill
yer.
The officials of foreign offices decline to
comment on the letter but high official of
the Treasury Department is quoted in an
interview as decrying the work of the
United States monetary commission.
The Times, commenting editorially on the
England, says: LAS the same influences
have been at work in France as here iii
relation to the currency reserve, the open-
ing of the French minis Is perhaps within
the limits of possibilities, though doubt
whether the action of the Bank of England
can be in any case a determining factor.
THE second condition which the hank inn
poses, the condition with reference to the
price of silver, is obviously more important.
An immense responsibility would rest upon
the bank officials who must exercise the
right to decide what should be regarded as
q satisfactory price of silver The edi-
torial protests strongly against the policy
of the bank in having consented to COM
init itself though even thus limited and
safeguarded.
article, the Times says: we cannot as
sumo that the admission of a silver reserve
would not detract from the banks prestige
abroad. 1t would be a very Objectionable
negotiations of the Ministry with the
eminent" Taking credit for having prac-
ticafly killed the plan, the editorial con-
cludes with the warning that the campaign
men," Il says. ARE not wholly disinclined
to reopen the minis, while a vigorous at
sdop the ssme This ebed P be o6 TO
without serious consideration. In any case
free coinage by France India and the
United States would not Justify the Bank
gold for reserve. Therefore the banks
offer can only encourage illusory hopes; and
the sooner It is allowed TO lapse into OBJ
livion the better for all concerned.
LJrd Farrer writes to the Times this
morning in part as follows: Il learn from
the best accessible information that a pro-
posal has been made TO reopen the Indian
minis TO silver on the understanding that
the United States and France do the same
at a ratio of 15ja to J. The consideration
offered is that il will insure India a perma-
nent and steady exchange. OF course at
that ratio this proposal appears to me 10
be In the highest degree Objectionable First.
because ii puts an end TO an experiment.
which promises to be successful. Second
because 1t affords no substantial prospect
or giving steady, permanent exchange.
which there is every prospect of attaining
II the policy OF 1898 is adhered TO. Third
because If it did succeed in giving a perrna-
nent exchange at the ratio Of 1919 TO l.
which is most improbable. il could only sue
al nv " rrfC l4a GOLD vain
OF silver throughout the world 10 the same
extent, thus Introducing without the con-
sent of the British Parliament all the mis-
chief Of international bimetallism at that
ratio. Lord Farrer promises on a future
occasion to give his reasons for these con-
illusions, adding that as the proposals have