The Saint Paul globe., 1897-09-17
GOLD STANDARD vs.. f
England Disp1eased.
Letter to the Chancellor De-
nOunced by the Press as
a Remarkable
Blunder.

LONDON, sept. 1I.-Ine Times, COLL
menting editorially this morning on the
letter read yesterday by the governor
Of the bank of England at the semi
annual meeting of the bank, says: LAS
the same influences have been 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 deter
mining factor"
Lord Farrar writes to the Times this
morning, in part as follows: II learn
from the best accessible information
that a proposal has been made to re-
open 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 consideration offered is
that it will insure India a permanent
and steady exchange"
The Standards leading editorial
deals with the letter of the governor
of the bank, and says: "a more
absurd and mischievous letter has sell
dom been penned by a man in a posi-
tion of high responsibility. 1t may be
one means of ridding the government
civilly of the opportunities Of the Nc
Kinley administration for Sir Michael
Hicks-Beach is neither a bimetallist
nor a man Of weak character. To
such a 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
it's reserve. Instead Of giving such an
answer and thus separating the bank
finally from pernicious agitation, the
government, apparently without the
knowledge and consent Of his col
leagues, wrote the chancellor of the
eXchequer that the bank was prepared
to hold one-f1fth of the bullion, held
against it's 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.
'It is no excuse to say that the gov
ernors letter involves no practical dan
ger to our currency. The mass of our
| people are unable to distinguish be-
tween the shades Of theory and opin-
| ion on this currency question. Multi
| tudes will think the bank converted to
bimetallism; and the devotees of that
transcendent cult will not be slow to
boast another victory. The indigna
| ton against the action Of the governor
| is largely mixed with derision. What
makes his blunder even more fatuous
| is the utter inadequacy of the proposal,
even If it could be adopted. Why on
earth should we help the United States
out of their currency dilemmas at the
expense of our own credit?'
LONDON, Sept. 16.-At the semi-an-
nual meeting of the Bank of England
| today, the governor, Hugh c. Smith,
said: "You are probaly 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
of France and America to resume free
coinage Among the proposals was
| one asking the bank to hold the
amount Of silver permissible under the
act of 1874 as against its notes"
The governor read a letter dated
| July 20, addressed to the chancellor of
exchequer, Sir Michael Hicks Beach.
| 1t was as follows: referring to our
| conversat ton, we beg to say the bank
is prepared to carry out what is laid
down as permissible in the bank char
ter viz, to hold one-flfth of the bullion
held against its note issue, in silver,
| provided always that the French mint
is again open to the free coinage of
silver, and that the price at which
IL L l.
| satisfactory"
Replying to the questions, the gov
ernor said the bank had no negotia-
tions with the United States monetary
commissioners, adding: I'VE have
bought no silver All we have done is
to agree, under certain circumstances,
! to carry out what is permissible under
the act of 1S44.'
The secretary of the Bank of Eng
land, George f. Glennie, when asked
if the action of the Bank of England
depended upon the reopening of the
Indian mints replied: ''That is a po-
litical question, and does not concern
u.s." The bankers of the city are sur
prised and displeased. Manager Ross,
of Glynn, Mills Currie & Co.. ardent
supporters of the. Gold Standard De-
fense- association, voiced the opinion
of bankers. He said: 1.-THE letter, with
such qualifications, does not pledge the
bank to anything, and it's only effect
will be to encourage the Bimetallists'
agitation. If the plan was carried
out it might raise the price Of silver
temporarily, which would be followed
by a reopenig of the American mines,
over-ropduction and another fall in
the price of silver"
WASHINGTON, Sept 16.-First As
sitant Postmaster General Heath has
received a letter from Senator VOL
colt in which the Senator, who is at
the head of the International none
tary commission, speaks very encour-
agingly of the outlook for securing an
international understanding in behalf
of silver. He refers to the decline in
silver, which, he says, is being used
everywhere in opposition to the efforts
of the commission. but expresses the
opinion that, Notwithstanding this ad-
verse influence, an internationl agree
ment will be secured. Senator VOL
=; colt states that he will be in Lon
don by the 1st of October, and that
he will reach Washington before the