The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-13
SATURDAY EVENING,

Hlole, Out not later tnan one 3yeaTs from
the date of issue, which shall be in the
denominations of $50 or 100 pesos, or. some
multiple Of such sum, and shall be re-
deemable in gold coin Of the United States
or In lawful money Of the islands, accord
ing to the terms of issue prescribed BY
the government of the island; but the
amount of such certificates outstanding
at any one time shall not exceed $5,000.-
000.' This is the most important section
of the bill, as it grapples with the re-
demption feature which was the great
'bugaboo' last winter, and the thing that
really prevented Philippine currency leg
islation. y n
Provision is also made for the gradual
retirement Of the Mexican pesos now in
use in the Philippines. The treasurer of
the islands will also be authorized, at his
discretion, to receive the new silver coins
and to issue, silver certificates upon them,
in denominations of not less than pesos.
The coin so deposited shall be- held in
the treasury for the payment on demand
of these certificates. When held by any
banking association in the archipelago,
they may be counted as part of the
lawful cash reserve. y -. .l,.-s. no er'>
MIR. Lndsay's Proposal.
These are the essential features of the
new Lodge Cooper currency bill. 1t, is
probable that the redemption feature will
occasion the most discussion among
financiers: this phase of the subject has
raised a serious question in the relation
of all gold standard countries to their
silver using dependencies. One OF the
best known students Of oriental policies In
| this country, although having no direct
relation to Philippine affairs. calls atten-
| ton to the redemption plan which was
proposed for India by A. M. Lindsay OF
| the Bank Of Bengal Calcutta. 1nasmuch
as it seemed at first difficult to provide
| for India sufficient gold reserve to MAIN
| tain a fixed rate Of exchange by redeem
! ing silver with gold, Mr.. Lindsay proposed
that ten millions sterling should be raised
| in. London. by long term loan and de-
posted in the Indian office or the Bank OF
| England. This fund might be styled the
| gold standard reserve and the office
dealing in it called 1.-The London gold
standard office"
1t should be announced, according to the
| Lindsay plan, that the London gold stand
ard office was prepared to sell to all ap-
plicants rupee drafts Of sufficient size
! in exchange for sterling money, at the
rate of l shilling, 4 lie pence per rupee
| These drafts should be drawn on two
offices to be. opened. in India, and styled
the Indian gold standard offices. 1t
should further be announced that the In
! dian gold standard offices would sell
drafts on the London office in exchange
for rupees at the rate of l shilling, 3A
| pence per rupee .,
If the gold standard reserve should de-
crease at any time Ito the apprehension
point" it would indicate that the rupee
currency was seriously redundent, and Il
| would become the duty Of the government
to curtail it.. Accordingly, its officer!
would melt a portion of the rupees held If
the Indian gold standard offices sending
the bullion to London for sale there FOL
| sterling money, which would go tt
strengthen the London gold standard re-
serve The loss on the operation woule
| not necessarily be permanent as, it could
be recouped afterwards by buying silvel
and coming it.
This plan Of Mr.. Lindsay's is substan
| TALLY the one that was followed with sue
cess for half century in maintaining
the sterling value of Scotch currency il
the absence Of gold coins. The Scotch
| bansk kept reserves in London agains
which they drew when necessary. It ais
resembles somewhat the practice of Hol
land, where gold is given freely for ex
port, but is granted very sparingly for 10
cal payment purposes. It is also simila
to the Java system. Prof. jerks, in hi
report to the war department on economi
questions in the far east suggests that al
adaptation Of the Lindsay plan, permit
ting the Philippine treasury to sell draft
on Washington, might enable the gol
standard to be maintained more easil.
without the necessity of holding any larg
I gold reserve in Manila. The committee
evidently prefer, however, to make the re
demption bureau more distinctly part o
the Philippine administration. The actua
! business Of the Philippine, islands will b
done on the gold standard. in any event
and the real problem for our law maker
is to- devise the simplest method Of adjust
ing to that worlds; standard, the silver G
popular preference in the orient so that tn
tremendous losses and disturbances fror
| Al nfIot ion, in, tic Ina ,o1, ho 1n1
IndIa's Experience
Professor jerks discusses in his repor
with clearness the economic effects in In
dia of the cessation of the free coinag
of silver. brought about by the law of 1885,
| Eou- of =, VA L,oa