The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-07-01
JAPAN,s PREMIER ON SILVER.

The June issue of the Consular Reports
is valuable because of the address of Count
Matsukata, premier of Japan, in presenting
the bill to the lower house which prac-
tically puts Japan on a gold basis 1t is
instructive reading, and yet there is nothing
new in the address. 1t is simply the ex-
perience of another nation which has tried
irredeemable paper money and the free
coinage of silver and gold on the ratio of
1872 to l while the commercial ratio has
been ffuctuating between 20 to 1 and 80 to l.
The inconvertible paper money, although
limited in the volume issued, fell to 50 cents
on the dollar in silver. Coin left the coun-
try, silver Well as gold. Finally the
government was forced to take steps to
redeem the paper currency in silver. When
it did it came to par. That is the expert
ence Of every nation in the world vet in
this country there are men demanding
that the United States make and issue cart
loads of paper-mill money
Having escaped the disaster of paper
money imitation. Japan undertook the coin
age and use of the two metals at a ratio
of l512 to /. The government did the coin
ing, purchasing the bullion. Very natural
ly, it coined nothing but silver so that
while Japan was bimetallic in name it was
silver monometallic in practice Let us use
the language Of the premier: But as sill
yer was exclusively used in all transac-
tons and gold existed only nominally. the
system was practically that of a silver
standard" That is precisely the same sort
of bimetallism which the Bryanites aGyo-
cate. Its true name is silver monometaIlism
which Japan has finally found it necessary
to get rid of
1t IS interesting to note the reasons which
the prime minister of Japan gives for a
change from bimetallism, or silver mono
metallism, to the gold standard The rise
in the prices of all commodities, due to
the loss of the purchase power of silver
for stamp it what the government would,
the silver of Japan. because it was not
bound to gold, had only the purchase power
OF the market value of silver bullion-is
one of the reasons assigned for the change.
Another reason is that the fuctuation of
silver hampers trade with foreign coun-
tries and tends generally to destroy that
stability which is essential to success in
business.
No part Of this address is more in
structive than that devoted to the dis
cussion of a ratio for the use of both metals
IN the monetary system of Japan in the
future Senator Stewart, of Nevada. in
one OF the free-silver harangues which he
has been injecting into the tariff discus
sions, declared that Japan had passed to
the gold standard by doubling the value of
gold. He may SO understand it: but the
count concludes his discussion of the future
ratio by declaring that it will be one of gold
to little over thirty-two of silver. Here
Is what the prime minister of Japan said:
But how should the value of gold or sill
yer be fixed? This is the most important
question. 1t might be fair to fix the reIa-
TIVE value of the two metals by an average
OF several years, If possible Silver how
ever, has fluctuated so violently that II is
impossible to take an average without de-
Partlng very far from its present value
Inc only alternative is to base the valua-
ton upon the latest market quotations but
as gold VIII more less appreciate when
the present proposal has been decided upon
II IS necessary 10 value gold a little higher
than 1t IS worth at present in authorization
or the rise. An average OF the London quo
tations during January this year was gold
one to silver a little less than thirtvfH,o
and 1T is thought advisable to fix the ratio
at one to little over thirty-two.
Thus, in it's wisdom, the government of
Japan has found the only plan by which
it is possible for any people to secure the
advantage of the use of both metals as
money, and that is to adopt the wisdom
of Jefferson and Hamilton when they de-
clared that the coinage ratio must be the
same as the commercial ratio of the two
metals.
The loss of Japan to the silver propa-
ganda in this country is a terrible blow.
All last year the orator and organ of the
sllVer-bullion syndicate never tired of en-
phasizing the prosperity of Japan with a.
silver money. The profits of it's manufac-
lures were set forth in glowing language.
but no mention was made of wages In
deed, one of the leading reasons why the
United States should go to silver mono
metallism by the free coinage of silver, they
said was that it might compete with ia
pan. Now that Japan, after its great
triumph over China, has adopted the gold
standard or it's equivalent by making the
coinage ratio 1 to 80, or nearly So the wis
dom and prosperity of Japan are no longer
quoted.
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