The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-10-29
Commission on International
Exchange Is Published.
THEY INVESTIGATED 1T
Delegates From Other Nations
Attended the Conference.

Department This commission was APP
pointed by President Roosevelt IN the
spring in q response to a request from
the governments of Mexico and China
for the cooperation of the government
OF the United States in such measures as
VIII tend to restore ard maintain fixed
relationship between the moneys of the
gold-standard countries and those of the
fiIVer-using countries. The members of
the commission are Messrs. II. Hanna,
OF Indianapolis; Charles \. Conant, Of
the Morton Trust Company Of New York;
and Prof. Jeremiah W jerks, of Cornell
University The commission report that
they visited The capitals Of Great Bit
ain, France, the Netherlands, Germany,
and Russia and presented to those coun-
tries the general subject of adopting in
the silver-using countries a currency sys-
tenn based upon gold. They directed their
work primarily TO securing the approval
Of the leading powers to a plan for q gold
exchange standard in China; but incident
~ asked the European powers TO adopt a
similar system in their dependencies in
the Orient and to adopt coinage unit
issued in each country ct substantially
the same ratio to gold
The American commission was accom-
panied. on its tour by a commission of the
Republic of Mexico ana the two commits
sions cooperated in the presentation of
their mission to the European powers y
special commission to confer with them
was appointed by the government of each
country visited. 1t is declared in the re-
port that these commissioners have in all
cases been cf eminence in their re-
spective countries by reason of their fl
nancial and official positions. Thus, in
three cOuRtries-France. Germany, and
Russia-the head of the national bank of
issue was chairman OF the commission.
In Great Britain one of the members of
the council for India and the English
negotiator of the new commercial treaty
between Great Britain and China as chair
man. In every country officials of their
respective Oriental banks-in Great Brit
ain, the Hongkong and Shankhai Bank
sng Corporation; in France, the Rank of
1ndo-China; in Germany, the German
Asiatic Bank; in Russia. the Russo-Chi-
nese Bank-sat on the commission.
The commission refer to the uncertain
ties INTRODUCED into trade by the huctua-
lions OF exchange between gold and silver
countr7s and say that the adoption of a
stable exchange. by remedying these con-
ditions, would unquestionably stimulate
the importation into China Of the pro-
ducts OF European and American mills
and factories. Many of these importa-
fions weuld be in the form Of advances
of capital for the development of the rich
natural resources Of China. These in
vestments would be made in the form Of
rails and rolling stock for new railways,
equipment for factories, and supplies for
the 1aborers engaged in extending rail
ways and modern industrial methods
China
Tt is declared that if a new system be
established in China it should he placed
= nthe gold basis at once. because in
lhat way foreign nations and China her
self viii begin to get the benefits at once.
Should the system be begun on the silver
basis. with the intention of establishing
the silver coins later on a parity with
gold. there would be no appreciate bene-
fit to international trade until this par
fly were established. While the interior
trade Of the country would to some ex-
tent be encouraged by national cur
rency upon any uniform basis. a change in
political or economic conditions in China
might postpone for many years the beue-
fits sought in establishing stable none
tary relations between China and foreign
countries.
The experience of other countries is
cited TO demonstrate the practicabiIity of
q -, l. = 10
The plan proposed for China is based up
on what is commonly called the gold-ex-
change standard. similar TO the plan re
Gently adopted by the congress of the
I nited States for the Philippines and TO
the plan which has been in operation in
the Netherlands and the Dutch East In
dies for twentyeight years The success /
ful maintenance Of this plan in the Meth
erlands for So long period covering fiuc-
tuations OF more than 80 per cent in the
gold value OF silver. and the more recent
success of similar plan in British India.
IN the face also of great fluctuations in
silver, dispel many of the doubts which
might arise. in the absence Of such histor-
lea lesfdeiice. Of the practcabiity Of the
plan recommended for China
A similar system has recently been
adopted by the Russian government for
lSokhara and is about to lie adopted by
Mexico for her own currency. ny Great
Britain for the Straits Settlements, and
by France for Indo-China
In diseussing the effect Of the gold-ex-
change system upon the price of silver
bullion the commission state that there
was suggested 10 the various govern
ments the wisdom Of so distributing the
Of silver which might be &C
tuany required by them for coinage pur-
poses as TO cause as little disturbance as I
possible 10 the market. II is declared that {
IL would be unwiSe Tor any government 10 /
attempt TO maintain the price OF silver by
PURCHASING beyond its regular needs and !
storing or coming ii, and that no one |
whose knowledge Of the monetary his |
tory Of the past few years is at all com
plete would advocate sue. course. The /
propyiety Of so distributing the market /
IS recognized in many fields, especially in /
the market for money. whose prudent dis (
Irjbution is the subject constantly OF pre- /
in the highest circles Of n (
nance Ii the ratio adopted by the differ /
INT governments that are now asact in /
new systems Of coinaee We're
ixed, as suggested, AZ aoo1t s. 10 !. thai I
TACT in itself would practically courel +
hese governments. without any formal j
agreefnent. to suspend their purchases
whenever the price Of silver per ounce /
rose to sSd. or ID II would obviously hs
1tireiy contrary 10 sound policy fer any /
government 10 increase It's purchases Of /
silver Beyond its legitimate and usual
needs. and il is not 10 be expected that /
any gold-standard country will take steps +
10 increase its present use Of silver OF
20 modify its existing system.
III. ION, -r,fssfor summed mn the -,s,.lss