The copper era. (Clifton, Graham County, Ariz.) 1899-1911, 1902-04-03
FREE COINAGE
OF SILVER.
Seems Now to be a Probable Event
of the Immediate Future.

Ocrats in Congress are waiting with
interest the reception the country al
large and the Republicans party will
give to the proposition to put the
Philippines currency on a Silver basis.
Republican Senators and Represent
atiyes from the Western States unite
in saying that the plan to put the Phil
ippines on a silver basis is shrewd
piece OF politics. They are convinced
it will change any sentiment there may
be in the Weat toward abandoning
the islands to a firm conviction that
they should be held for all time. The
Democrats arc sornwhat al sea for they
cannot vote against the proposition,
and it will make the passage OF the
entire civil government bill much
easier.
The oringinal proposition before the
committee was a gold currency, sup
ported by a silver coin worth at melt
ing pot value, about forty cents. 1t
was proposed to legalize this currency
at the ratio OF two silver dollars for
one gold dollar.
The committee has had many dis
cussions OF the currency problem,
which is recognized as the most vital
of all the problems in the Philippines
and finally decided that gold currency
was unsuitable as the Philippines was
a poor country, and that gold is an ex
pensive currency and can only be held
and used as money in rich countries.
1t was finally decided that although
the United States could maintain a
gold currency in the Philippines it
would be tax and burden to keep up
a gold reserve to meet the require
ments at all times.
The committee was shown by the
experts from the far East. Messrs.
Towsend and Forbes, who have had
long experience in banking and finance
in Manila, Shanghai, Hougkong and
the straits, that a gold currency would
tend to increase the cost OF every
thing in the Philippines and to restrict
rather than develop the export trade
Of the country.
The Democrats in the Senate are
willing that the Republicans shall es-
Ia blish silver coinage for the Philip
pines, but they are wondering how
this proposition can be reconciled to
The campaign statements of 1896 and
1900 or this very subject. Every Re-
publican street-corner orator in the
silver campaigns pointed to India and
the BON bay dollar as horrible exam
pie OF what the United States would
come to if they adopted the free coin
age OF silver at any ratio whatever.
There are now two currencies in the
PHILIPPINES. The Mexican dollar is
used there extensively. and the Amer
can gold dollar is used by the Amer
can officials almost exclusively. The
government officials are trying to
make these two currencies work in
Unison. They established a ratio OF
20 l. The market ratio fell to about
10 10 to |, and the consequence was
that the Philippines became flooded
with Mexican dollars to buy the gold
1t these prices and send it to America
Or wherever it could be sold at the
greatest profit. The authorities
the ratio OF . 10 to /. That
ate did not prevent the shrewd Chin
s5e bankers from seeking a profit and
5he gold was still exported.
The laying down OF an American
gold dollar in the Philippines to keep
up a gold reserve means a cost OF
freight, insurance and interest which
amounts to about ! IL per cent. The
government would continually be OBJ
iged to send gold there at its owl
,pense and it would be Immediately
under these conditions for
he benefit OF the exporter.
The belief grows gradually that all
he silver that American miners send
20 the mint will be eventually coined
or use in the Philippines, thus prac-
,ically establishing the free coinage
IF both gold and silver.