The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-06-09
GROSS INCONSISTENCY

There are two clauses in the Senate
Philippine bill the Inconsistency and con-
Trajectory nature of which reflect dis
advantageously upon the wisdom Of the
forty-eight senator's who voted for the
passage of the bill.
These are ~ the provision authorizing
municipalities to issue only gold bonds
for municipal improvements, and (2) the
clause establishing the single silver stand
ard in the archipelago and providing for
the coinage Of an American Filipino dol
lar, together with subsidiary coins, both
to circulate at their bullion value, the
new coin to take the place Of the Mexican
dollar which, for many years, has circu-
lated in the islands. The United States
government thus, if the house adopts the
latter provision, will present the inter-
esting spectacle Of standing sponsor for the
single silver standard and free silver
coinage and the issue of a coin stamped
one dollar which Is worth only half or
less than half the one hundred cents
which constitute dollar. The San Fran
cisco mint is authorized to coin this
Americana Filipino dollar, also, for ship
ment to the Philippines, American silver
bullion to be used for such coinage. But,
by the first clause quoted, all bonds for
municipal improvements must be issued
payable in gold so that they can be readily
negotiated. We thus force upon the Fill
pinos a silver standard currency, but all
bond obligations must be payable in gold.
The internal business must be- done with
the proposed bullion value dollar which
is not a dollar. It is legal tender, and If
a creditor holds note of a resident of
the islands for $4,000 or $4,000, he will
be obliged to take in payment the amount
in Filipino Ascent dollars.
Importers Of Philippine products buy
them with the cheapest money they can
find and, at present. that is the Ascent
Mexican dollar and the clipped silver and
mongrel copper and other coins put in
circulation, under the Spanish regime.
When it comes to commercial transactions
which require payments abroad, the cur
rency Of the Philippines is taken only at
its gold value for foreign exchange The
proposed dollar would not stop the fluctua-
lions in gold exchange which continually
embarrass trade in the Philippines.
Five-sevenths of the imports in the Phil
ippines are from gold standard countries
and f1ve-sixths Of the exports are to such
countries, and the, only really legitimate
and safe use for silver in the Philippines,
the only way to prevent depreciation and
embarrassing fluctuations of gold ex-
change, is to tie the silver issues to the
gold standard. If there is issued a dis
tinctive silver coin it should be issued
at a fixed gold parity and so maintained.
j., A silver currency is not inconsistent
with the gold standard. The two may ex-
list together as they do in this country
and elsewhere in gold standard countries
without any depreciation Of silver, be-
cause the issue is limited and it is an
chored to the gold standard.
The senate committee designed the pro-
posed Philippine dollar. as trade dol
lar, seemingly. forgetting the utter fail
ure of our experiment in 1876 when the
attempt was made to provide the far east
Will d SllVSE uOlldI "ulCu WdS luLeuueu
to take the olace Of the Mexican dollar
there, the experiment proving very ex
pensive one for our government. Japan
tried the same experiment in 1s717S,
when silver yen was issued for circula-
ton in the Chinese treaty ports in oppo-
sition to the Mexican dollar and it failed.
Senator Lodge, in defending the proposed
trade dollar, made the old argument
heard in Japan and in this country about
the circulation of the coin in the Chinese
treaty ports. The arguments of Mr..
Ledge are all rendered insufficient by the
demonstrate fact that the bulk of the
foreign business Of the Philippines is done
with gold-standard countries. The Fill
pinos, moreover, are beginning to find
out that rs of American gold money is
worth $40 of the currency inherited from
the Spanish regime. The business ele-
ment in Manila, speaking through the
charmber of commerce of that city, has
petitioned our government to take some
action to prevent the injurious depreoia-
tion Of silver and the provisions Of the
senate bill, forcing the silver standard
on the people. if enacted, will, in effect,
be giving them stone when they ask for
bread. The glazing Inconsistency Of the
senate's action is apparent. H.