The sun., 1902-12-30
CURRENCY FOR PHILIPPINES,
OPPOSING VIEWS BEFORE THE
ECONOMIC ASSOCIATION.


as to Adjust the Money to Gold.
PHILADELPHIA. Dec. 2s-At the join,
session of the Historical Association with
the American Economic Association to-
night, in Griffith Hail. Prof. jeremiah W.
jerks Of Cornell. in speaking on currency
problems in the Orient, said that "inasmuch
as our Government has the duty and has
expressed the intention of administering
the Philippines for the benefit Of the Fill
pinos. IL seems essential, both for their
sakes and for the sake of the Government
itself, that the gold standard be established
and maintained. The present bill before
Congress seems. on the whole, to have been
well drawn in order TO accomplish these
results
On the other hand the suggestion that the
leading countries interested in trade in the
Orient should cooperate to give stability
to the silver money of Oriental count ries
was made by Charles A. Conant Of the
Morton Trust Company Of New York Mr..
Conant said:
A new crisis of exchange has been invoked
by the recent fall IN the I'd price OF silver a
crlsis which does not n fieCt the gold countries
directly IN their transactions az home. but
does affect them profoundly in their rela-
tons with the East.
cumstances China has been subjected to a
burden. which under her loose system OF
taxation has withdrawn her from the market
as purchaser OF silver and brought her into
the market as vendor Of II. The result
has been primarily TO depress the price of
silver almost to one-third of its old historic
parity. Much more important has been the
eject Of this fall in silver upon China. and
other silver-usine countries IN diminishing
that the Powers, in eKacting the last pound Of
flesh from China. have killed the goose
which lays the, golden egg by making It
Of S?00.0CO. 600 annually in foreign goods.
The fall IN silver has necessarily produced
similar influence influence. in less desrse upon our
vestnents exceed $500. 600. 900 by adding
sy e As the sssy S d h'f h. psp
Sinss Hmefcan ar SSd capital! and has ahfes,ensd to
Straits Settlements. and the extensive pos
sessions OF France IN Asia;
The situation calls loudly for n remedy: but
auicksands Of international bimetallism. II
was The aim Of the bimetallists by opening an
unlimited market TO either metal 70 keep
them equal to each other at an arbitrary
parity. The experiment inevitably failed
wherever 1t was put TO the test. because Il Is
not in the power OF law to establish risid
r'lati0ns OF value between two different
things.
The principal silver countries are not fitted
Icr the int ntroduction OF a pure gold currency
to make gold coins convenient in dailv trans
act ions. and their wealth in most cases is in
a rivalry with the rich nations for the worlds
stock OF gold. There is possible remedy
based upon sound economic PRINCIPLES.
II IL possible 10 bring silver coins intoa fNed
relation to gold by 20 limiting .ne surolv of
such coin. that II shall always coual and more
than equal the demand at fyed pri'. Lac
uriCe oil an art icle RESPONDS o the demands for
IL, II the silver currency Of the Philippines II
lust sufficient in quan'i', 20 meet the demand
ior II, Il VII retain ,h. value given Il by law:
II, no law can bolster w its price. to"trol
OF the quantity Of the currency by the G,v-
from the hnci nat ions Of the bullion market
Goyernmcnt control OF the supply Of coin
age does not mean that this supply shall be
arbitrarily. fxed without reference TO the
eschsases i viii always Se p9s.iSi. g Dc:
respondin adequately or not to the demsnds
OF trade This can be done even wlihoq,,
ss 9s9 TO viii ISer % s,S sid
change fund in the financial capitals Of the
world like London and New York. against
is redundant, and where bills emitting the
holder to silver coin. may be- bought with
gold when there Is a demand for them. The
par for public dues would establish a limited
redemption. such, as has alone maintained
our own silver dollars at a par with gold.
In order to secure the best results for silver
M a commodity and for the steadiness of
the monetary system OF the silver countries
II IL highly desira BILE that there should be some
International concert Of action between
Mexico and those countries having deper-
denotes In the East. The adoption of q com
the Philippines. ihe straits, settlements and
Indo- China would undoubtedly do much
to promote their trade with each other and
each nation should have control Of its own
monetary system. In order that II NAV correct
its own mistakes and suffer the consequences
OF its own blunders; but tho time is evidently
at hand for a new effort to restore the par OF
exchange between the gold countries and the
East, along lines which conform to economic
them