The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-09-24
COMMON HONEsTYMINV0LVED
LORD FARRER URGES ENGLAND
TO REJECT THE OFFER OF
AMERfcAia5
A SOUND SYSTEM loF CURRENCY.
1t Is What Is Wanted in the United
States as Well Nas in
Europe.

d Il
this morning on bimetallism and the
Indian mint. He says: I'm my opin-
ion, the ultimate solution of the Dues
ton will be found in the adoption of
the gold standard in India He then
proceeds to discuss the proposals of
the American commissioners and the
French government, in which connec-
ton he says: There has. been no Of
fetal statement of Senator Wolcott's
proposal, but we may form a shrewd
guess from the article which appeared
in the National Review, entitled 'Epi-
sodes of the Month"; and written by
some one who intends to be in the coun-
ellis of the American negotiations.
From this we gather that India is in
vited to open her mint at a ratio of
151s to 1, which, in all probability, is
the only ratio that would satisfy
France and the United States.''
After pointing out that various tent
porary panics would ensue from carry
| ing out the proposals, Lord Farrer
sketches the position of. currency in
| the United States and France, from
which he concludes that there is 'ev-
cry reason to believe in the present
circumstances that neither the United
States nor France nor both united
could possibly, by opening the mints,
create a demand for Silver such as
would raise or maintain its gold value
at the ratio of 1919 to H.
He continues: AS tor India, expert
ence has shown empha tically that the
opening Of its minis would not create
= 1,0, i i
stances would be less favorable there,
for the opening of the French and the
American minis would create a COM
petition, which possibly especially if
the Indian minis were open to gold,
would not only prevent silver from
flowing to India, but would also attract
silver from India, causing an export
to Europe. There is another risk. It
is highly improbable that any diplo-
could reverse the tendency of the
| world for the past 200 years.
"The English people adopted the gold
standard in spit of the government. 1t
is much more likely that the American
bankers and merchants will arrange TO
| make their dealings on gold basis,
| and thus evade the law which gives
silver an artificial gold value. 1t is al
most certain that this will occur in
| is very likely also to occur in all large
dealings at home and abroad.
'SuppoSing the proposal succeeded,
its effect would be in iall parts of the
British empire and all gold standard
countries, that the standard of values
| would be- altered, enabling debtors to
discharge gold at the rate of 1512 to L.
Because any one could take silver to
| the French or American minis and get
| it coined into francs or dollars, which,
| on the hypothesis that the plan sue
| ceeded and stable exchange is Sc
cured, would be worth in the market
| of the world, including London, one
| fifteenth and a half of. their weight in
gold 1t would enable the United
States or the French government, sup
posing them to owe debts abroad, to
use the enormous stocks of silver they
| possess in paying those debts with
| less than half the silver with which
| they could now pay them.
"Such a change would be good for
neither India nor any other country
which values common honesty. Such
a change would be most injurious to
| Great Britain and the British empire,
and yet this revolutionary change
| would be effected by the aid and with
| the full concurrence Of our own gov
eminent 1t is impossible to believe
| that the government viii take such
step.
Enough has been said to show that
| the proposal is impraetfcable if desir-
| able and undesirable if practicable.
For the sake of India and the empire,
| it ought to be rejected summarily.
! We are deeply interested in the well
| fare of the United States. Every mis-
| take that country makes while it may
| benefit US as commercial rival, Injuries
US far more as friendly dealers and
customers. What she needs above
all is a restoration of, sound system
| of currency, and this she will not get
| while the ignis fatuus of international
| bimetalliSm distractS the attention of
her rulers. The sooner we can help to
| lay that phantom, the better for both
| countries
The Times says editorially this
morning: eve do not suppose, in view
! of the emphatic remonstrance Of the
! London bankers and the general bust
| ness community, that there will be
any desire to go further, even in a
speculative way, with policy thor
oughly discredited from the beginning.
We must deprecate in the most en-
pkatic way any attempt to bring po-
| litical influence to bear upon the adj
| ninistrative policy of the bank"
| In concluding it's editorial the Timee
says: ct is difficult to resist the
| force of Lord Farrer's argument. An
| international arrangement to raise sill
yer to the artificial value contemplated
would be a revolutionary measure, ac-
complished probably without the con-
sent of legislature, which would carry
with it the greatest consequences to
| IQritj finance and -