Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-12-07
Currency for the Philippines Dis
cussed by the Cabinet.
SCARCITY IN THE SILVER SUPPLY
Secretary Cages Views Upon the
Subject.
SOME OF TODAY'S CALLERS

Philippines The Secretary of War talked
of the matter some time. Secretary Gage
and other members also discussed 1t. The
whole question is to be referred to Con-
gress, and that body will have to decide
whether it will have free coinage in the
islands, with free silver as consequence.
whether 1t will buy silver and coin
peso that will circulate in the islands at
90 cents, this coin, however, to contain
about as much silver as is in the dollar of
the United States; at least as much as in
the Mexican dollar. The latter dollar, con-
tanning 37717 grains, has transacted nearly
all the business OF the islands for many
years The people know no other currency.
The soldiers Of this country swap their gold
for the Mexican dollars and do all their
trading with these. The quartermasters
and commissaries of the United States army
are likewise compelled to do business with
these deprecated dollars, that con-
stantly fiuctuatng in value with the rise or
fall of silver.
Scarcity in Supply of Silver.
Secretary Root states that the disturb
ances in China have caused scarcity in
the supply of silver in the islands and the
result is that business is suffering. The
Spariards had mint at Manila. and it is
still standing This could be utilized. it is
believed by the administration. as branch
mint of the United States. to he known as
the Philippine Manila mint. The scarcity
of the Mexican dollar in the Philippines
has caused the price to advance to SO
cents. while the government employees and
others are forced to accept them at so
cents because the government must have
some established price with which to do
business
Secretary Root touched briefly upon the
matter in his annual report, but as the
subject is becoming one of much inpor-
tance Congress will be asked to settle 1t
at this session. Mr. Root stated in his re-
port that two suggestions had been made
other than that of free coinage One
that this country should establish mint
and coin dollar the same weight and
fineness as the Mexican dollar, and which
would take its chances with the Mexican
dollar in the fluctuations of the market
The other .Sgestion-and this one is ia
vored by Secretary Gage-=is tnat this gov
ernment buy silver and coin a peso con-
tanning nearly as much silver as in the
American dollar. but to have fixed ratio
to be maintained by this country, insuring
stability of trade and exchange He thinks
that 30 cents SHOULD be the fixed ratio, two
of the coins to be received and paid out by
the government for one gold dollar OF the
l nited States. He thinks this fixed rate of
exchange would prevent eXorbitapt ex-
change rates by bankers and money
changers.
Secretary Cages Views.
Secretary Gage. in a memorandum fur
nished Secretary Root regarding the money
in the Philippines, gives at length his views
of what should be done Summed up, these
views follows:
THE evident cure is to establish their
domestic money in fixed relation to the
world money, or what might better be
called the settling house standard, London
or New York. can this be done? Probably
1t can. How? BY following, in modified
way. what is now in vogue in the United
States, that is to say. let the island gov
or our own government. as may
be thought the wiser, buy silver bullion and
coin 412 grains, nine-tenths fine, into pc
SOS or Filipino dollars.
Pay them out for all goods bought or
service rendered, at the ratio of silver
pesos to 81 of gold, and agree to redeem
them from the holder at the same ratio
namely. 81 in gold for . silver pesos Cor
Filipino dollars). At the present price of
profit of about 5 per cent to the govern
ment in thus buying bullion and coming
money. Such profit, however, should not be
absorbed into the public treasury under the
appellation of seigniorage. 1t
should be kept in separate trust fund to
meet the shrinkage in possible reIemp-
tons.
This course successfully inaugurated
" ou,d give comparative stability in all the
exchanges of the islands.
There are two considerations which must
be recognized as attending dangers EN-
barra ssments to the course suggested.
''First. If the bullion value in the new
silver coinage rose much above the fixed
gold equivalent they would to some extent
be shipped out Of the country to be ex-
for gold at the higher rate. The
result Of this would be to deplete the vol
ume of circulating medium; or,
Second If the bullion value Of the silver |
in the new coinage fell below the average
cost to the government there would be
loss involved in that portion which came
in for redemption IN gold.
These two objections are, however, more
nominal than real. because they would tend
to be self-corrective, for. if in the first case
the silver was Slipped from the island to be
sold abroad as bullion the effect would be
to depress its price abroad; and in the sec
coin should fall far below the
cost price to the government as
to send in for redemption in gold,
the amount SO redeemed would reduce
Of things. could not be seriously depleted
without raising Qocally) the value Of the
coins remaining in circulation
Not Much Else Done.
Outside of the Philippine money. which
will no doubt precipitate Congress into a
long financial discussion, the cabinet did
little. Secretary Long left the session early
so that he might attend the opening of bids
for battle ships at the Navy Department.
Prior to the cabinet meeting the President
had a good many callers, among them be-
ing Representatives Grosvenor Hull Dali
zeii, Morris, Miller, Kansas; Shaw of New
York. and J. p. Conner, who succeeded S,n-
ator Dolliver from Iowa. Senator Dolliver
was with Mr.. Conner, Senator'S Pettus |
Beveridge and Scott saw the President
Senator Scott was with Park Agnew, and
they saw the President in behalf of Asa |
Rodgers for collector of internal revenue of
the petersburg, Va, district.
r w Walker a candidate for co1lao<or
of the port of Mobile. saw the President
Presidential Nominations.
The following nominations were sent to |
the Senate by the President today:
Colonel John F, Weston, assistant COM
general OF subsistence, to be COM
mssary general of subsistence, with the
rank of brigadier general.
Captain Frank B. McKenna, 47th Infan- |
try, United States Volunteers {irst Heuten-
ant 18th Infantry, United States army, to /,
be inspector general Of volunteers, with the |
rank of major.
Will BE Named the Ajax.
wae apnnupead fodov that ooI,to,