The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-09-11
A POINT FOR SILVER.
Rank OF ENGLAND TO HOLD 1T As
PART OF RESERVE
Directors Agree TO Hold onc-afth In
the white Metaf-The Lcnden
Times Makes TIE Anneuneem~nt
i'm q Hostile Letter Frora . Core
spondent. Who Attributes IL to
American influence.

LONDON. Sept. 1.-The Times. IN
special article from correspondent
whose accuracy & says & has reason 70
place confidence 81, makes ne announce
rnent that tho Bank Of England darecto<s
have given consent 70 hesd one-hfih II tho
banks reserve n silver. Tas article.
which Is headed "A Rk4ncustrznce." says:
Has The bank been well advised in fall
ing IN with the suggestion pushed fo-wArd
by certain Americans that 1. should aoid
s nth OF is reserve In Slse-F Perhaps
the assent Was given IA very guarded
terms perhaps IL wa done 20 obitzs per
sons IN high quarters perhaps IL was con-
sadersd an act Of International courtesy.
There may have been this or that reason
20 excuse or extenuste. but the broad, plain
truth Is that 81 existing circumstances
the bank ought 70 have Get i.s face en-
phateaily sga4ns. any such notion, and II
has not done 50. TX IS useless 10 coatend
that tae plan IS stamped with the pSrInis-
sion Of the bank Charter act and the aa-
ihority Of Sir Robert Peel. Ii is equally
useless 10 remember that al the Paris
monetary conference In lSss. The bank. on
the suggestion OF Italy and tAe United
States. gave soma sort OF promise that,
should International b.-metallisxn be es-
tablisAed. Il might allow the reappearancs
OF silver bullion as assets n the issue de-
pArtment Of the bank.
Precedent Not I'm Point
''The reasons which aetuated ST. Robert
Peel are of no application IN present eir.
eumstanees. II Is important 10 remember
that the concession OF 1871 was Immediate
ly saiEsd upon as sn important British
declaration ia favor Of bl-mstallss.n and
has been 8 handle OF annoyance against
the United States ever since We DO not
1--we In Is4s and we ought TO learn wisdom
"a n NnNa<lQ<x Ii
would be useless for the Bank Of England
TO keep seven million pounds or eight mill
lion pounds IN the shape OF silver reserve
as IL would be for parliament TO pass law
for the creation OF rotten boroughs. The
Bank OF England ought 10 have said this,
but II has not said this. Sir Rob-
ert Peel explained in ls44 that it
was well TO hold silver so as TO be In 8
position to enjoy the opportunity offered
Us by bi-me:all.c France to pay our debts
In cheaper metal.
But what has this to DO with the pres
ent suggestion7 The very point OF IL Is
that our reserve Is to consist permanently
in part OF silver, so that We may assist
In raising the price OF silver, That we
should dispose of 1t at a profit to France
or America Is the only thing that under
the proposed scheme OF international BIZ
metallism we could not do. The circunl-
stances are quite different. Where Peel
may have been wise, we should be exceed
ingiy foolish. Also. as the only dubious
point In our financial system Ia the very
occasional weakness OF our gold reserve at
the bank why should we deliberately
choose TO water that reserve by PRACTICAL
ly reducing II one-fifth2
Attack by the Thundercr.
The Times. commenting editoriaiiy on
what IL calls dramatic surprises" says:
THE establishment of the public VIII be
UNNECESSARILY greater than at the action
tinues.
This revolution in policy. for It is moth
ing less than our correspondent described,
applies to the stock OF coin and bullion
held In the Issue department as security
for the banks notes. PeePs act forbids
the bank TO hold more than one-fourth in
silver. The business community win hope
that the director. may be able 10 show
your informant that be is mistaken. The
silver would be quite useless. for nobody.
witnessing the recent headlong fan in
price, would dream OF regarding II as any
thing but an eligible quantity in such
connection"
THE banks credit is certainly strong
enough TO bear the additional strain with
out even wincing, but why should II be
subjected thereto? II the government f.
found some less objectionable sop 20 throw
TO the American commissioners or the biz
nsetali!sts among the ministerial support
ers, or whomsoever II may be that has TO
be conciiiated. II would have been prefer
abIe TO adopt the oft-repeatsd suggestion
70 cease coming half-sovereigns In order
70 secure a greater circulation. This
would have been inconvenient, but not
positively harmful
.s'rha measure now said 20 be coutem-
plated can only create a temporary vscu"
urn In the silver market, which VIII new
itsbly be rapidly filed by the practically
.nexhaustibls supplies available IL 70
needless 10 deal with the mechanical Off
ecultfes. such as the question OF the valus
now standing IN the banks books, or ths
course to be pursued with the large with
6rawafs Of gold 10 raise the proportion
above one-nfth These are mere details.
which shrink before the Importance OF the
principle involved We hope the directors
viii speedily explain"