The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-09-24
SHOULD NOT GRIEVE
Continued from First Page9

/
may form a shrewd guess from an ar
ticle which appeared in the National Re-
view for August. entitled Episodes OF
| the Month"; and written by some one
VINO appears TO be in the councils OF the
/ American negotiators. From this we
/ gather that India is invited to open her
mint at a ratio of l. 1-2 to 1, which in
! all probability is the only ratio which
would satisfy France and the United
States. This ratio would mean that the
present gold value of silver would have
20 be increased 1e5 per cent
After pointing out that various tenn
porary panics would principally ensue
from carrying out the proposals, Lord
Farrer sketches the position Of currency
in the United States and France, from
which ne concludes that there is every
reason to believe, in the present circum-
stances, that neither the United States
nor France, nor both united, could pos
sIbly by opening the minis create a de-
mand for silver such as would raise or
maintain its gold value at the ratio OF
Is 1-2 to l.
Lord Farrer continues:
LAS to India, experience has shown
emphatically that the opening Of its
minis would not create the necessity;
indeed, circumstances would be less ia
voraole there. for the opening OF the
French and American minis would Gre
ate a competition which, possibly, es-
peciaIly if the Indian minis were open
10 god, would not only prevent silver
from flowing 10 India, but would also at
tract silver from India, causing an ex-
port 70 Europe.
There IS another risk. It is nightly
improbable that any diplomatic or legis-
lative arrangements could reverse the
tendency OF the world for the past 200
years To make gold the same standard
Of value. The English people adopted
it in spite OF government. 1t is much
more likely that the American bankers
and merchants will arrange to make
their dealings on a gold basis, and thus
evade the law which give. silver an ar
tificial gold value. 1t is almost certain
that his viii occur in case of interna-
ton al dealings, and II is very likely also
70 occur in large dealings at home and
abroad.
'Supposing the proposal succeeded, its
effect would be in all parts of the Brit
ism empire and all gold standard ceun-
tries that the standard of values would
be altered, ene bling debtors TO discharge
gold debts with silver at the rate of
Is 1-2 to l. Because anyone could take
silver to the French and American
minis and get it coined into francs and
dollars, which. on the hypothesis that
they succeeded and stable exchange
is secured, would be worth in the mar
ket of the world, including London, one
fifteen and a half of this weight in gold
IT would enable the United States or the
French government. supposing them to
owe debts abroad, 10 use the enormous
stocks of silver they possess in paying
these debts, with less than half the sill
yer with which they could now pay
them.
'Such a change would be good for In
dia nor any other country which values
common honesty. Such change would
be most injurious TO Great Britain and
rne British empire, and yet this revo-
lution3ry change would be effected by
the aid and with the full concurrence of
our own government. 1t is impossible
to believe that the government will take
such a step.
Enough has been said 10 show that |
the proposal Isl mpracticable If desira-
bic, and undesirs bic If practicable.
Tor the sake Of India and the empire |
It ought to be respected summarily.
But there is another reason for re- |
jecting il summarily. We are deeply in |
terested in the welfare Of the United |
States. Every mistake thai country !
makes, While II may benefit US as a CON- |
mercial rival. Injuries Us far more as
friendly dealers and customers. What /
she needs ABOVE all is a restoration Of |
a sound system OF currency. and this |
she will not get while the 1gnis fatuus'
1f International bimetsllism distracts |
the attention OF her rulers. The sooner
we can help to lay that phantom. the
better for both coun tries
The Times says editorially this morn
ng:
We do not suppose, in view Of the en-
)hatic remonstrance Of the London
bankers and the general business com
nunity. that there will De any desire 10
20 further, even in a speculative way,
With policy thoroughly discredited
rom the beginning. We must deprecaie
n the most emphatic way any attempt
o bring political influence 10 bear upon
he administration policy Of the bank"
In concluding its editorial, the Times
avs:
1T is difficult 20 resist the force Of
ord Farrer's argument An interna-
ional arrangement; to raise silver % the
Irtificial value contemplated would be a
evolutionary measure. accomplished
with on Observation-Disclosures
without the consent OF legisla-
ure. which would carry with II the great
81 consequences TO British finance and |
ommerce"