The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-07-20
SILVER IN THE ORIENT
Senators Will Study the Currency
Problem in the Far East.
THE NEW JAPANESE LAW
Senator Pettigrew Says 1t Was Adopted
In the Interest of the Creditor Classes
Only Comments on the Report OF
Japan's Currency Commission.


yer republican senators, who have been
designated as delegates To Japan and
the orient leave for their homes this
week They are booked 10 sail from
Victoria ion Yokohama on the second
day "t August. They viii probably Dc
absent untll November senator Prttl-
grew, who is greatly improved in
hcalthg Is the most active man In prep
aratiuns Tor the "trip, lie is posting
himstlf thoroughly in advance of the
trip tliat he may he in position to In-
telligently digest all he may learn in
his abs'ncc. He has complied and has
had published as u senate document a
pamphlet containing full translation
Of the new Japanese currency law and
the report of the japanese currency
commission Bound with this In the
speech of COUNT Matsukata, the Japa-
nese minister OF finance. in presenting
! the currency bill 10 the house of rep
resentativcs an extended article on the
subject, by Wharton Baker and the
conclusions OF Senator Pettigrew him
I self.
! In his own statement senator Petti-
\ grew says he is convinced that the gold
standard has been adopted entirely in
the interest Of the creditor class of
Japan. and for the purpose of prevent
/ ing n further decline IN the purchasing
| power II their credits THE manulac-
turing classes have been induced TO ac-
cept the change" he says. by the ar
! gumeni that IL would crystalline the ad-
VantaRc that Japan already has over
gold-using countries as result of the
appreciation of gold In the past. and
thus perpetuate and make certain her
advantage In the future.
/ I,.a
ator, Japan was governed by fcudal
aristoeracy. the emperor being a mere
iigui ehtad. but at that time peace
able revolution occurred 10y which the
| emperor became the real head ~ the
! government and the feudal aristocrary
surrendered their right Ia draw sal
arios from funds collected by taxation,
and RECEIVED In return therefor the
bonds Of the Japanese government for
the sum Of l14,000, 900 If yens, and they
thus lt once became the creditor aud
m0nepd class OF the country, for this
sum a. that time was equal to n sum
five dmes as great In the Western
( world The feudal aristOcracy. there
fore, became at once the moneyed arls-
tocrry Of the empire: and owing To
the fact that they had been the ruling
classes In the past. their suddenly nc-
quiwd wealth and their knowledge If
government has perpetuated their
power and enabled them To dictate the
| afairs uf the nation ever since
In order To- make these bonds more
valuable. In 1876. the Japancsr govern
ment al the instigation of the bond
hdders adopted the national banking
system Of the United States. These
bonds we've used as basis Tor circula-
ton, and the creditor classes became
! . ~ Ins Of h.. L gfrs
when the present Bank uf Japan was
established, these bondholders became
the subscribers of this stock, and their
bonds were used as security for the
/ circulation Of paper money.
Since the war with china prices
have risen about 20 per cent. and the
creditor classes became alarmed. as
appears from the speech of the minla-
ter of finance, where he undertook 10
show that silver must continue " de-
cline as compared with gold. owing 10
its increased production and Ia the
fact that many more nations are
adopting the gold standard clearly In
dlcating that this feeling of alarm is
fOr the value of securities owned by
the creditor classes He also called at
tention to the fact that prices have
risen 80 per cent, since the war. and
these two arguments are the very argu-
monts used by Chevalier To induce the
people of France To demonetlze gold
after the discoveries in California: /:
they are the arguments which induced
the creditor classes of England to
adopt the gold standard after the de-
feat ~ Napoleon al Waterloo. and are
the very reasons that induced the cred
itor classes of the United States so
I rccklessly to secure the adoption of the
gold standard after the enormous debt
had been incurred by our government
in suppressing the rebellion.
THE power and influence of the cred
itor classes Of japan have been greatly
enhanced by the debt incurred as a
result of the war with China, and thus
the situation presents many features
very similar to that which Undue a
Germany. in 1873. England in 1916 and
the United States, In 1878 tu adopt the
gold standard. In every instance the
producers Of wealth were not consid-
cred. II Is true that the minister ~
finance in Japan argued that the rise
in prices would cut on exports from
Japan. and therefore the manufacture
ing classes were interested but he
made no argument which appealed to
the farming classes. which is the para.
mount Industry Of Japan. They are
entirely left out Of consideration. TIE
] Itsull hl itAt dhNEfAAhil VI lIf EifH
standard in japan must be- the SAME
as elseW mere. IL can not help but re-.
suit In the further appreciation Of gold
and a corresponding apparent deClir,
In the value Of silver. and decline IL
the gold price ~ all products Nhicl
VIII check Jsrln's wonderful indus
trial prosperity and transfer her In
dustrics To China. II China remains up
on silver basis. Already gold hai
risen in value sufficient 50 that there Il
a profit IN exporting il from Japan arc
a slight per cent. oi advantage in man
ufaeturing all l.inds ~ goods IN chin,
over the manufacture of like goods II
japan As a result japan VIII also ex
periencc the same ruin to her agricul
tural classes rs has resulted Ia agri
culture In every gold-standaTJ countr!
in the world. she seems To have dis
regarded absolutely the warning Of he
currency commission.
"The report OF the currency commits
sion appointed by japan. under tn
head of the Effect OF he adoption o
the gold standard upon gold countries
has the following statement:
Loss to Debtors and Taxpayers. -
This is nacessarily the case when thel
have "a pay their debts with money
the purchasing power of which has In
creased after the debt was incurred.
! - Depression of Commerce and In
dustry y.-lt is quite natural that com