The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-01-30
A LITTLE MONETARY
LEGISLATION is
PROPOSED
China and Mexico Ask the
United States to Help Es-
tablish a Fixed Relation
ship Between Gold and Sill
yer Standard Countries.


WASHINGTON D. c., Jan. 29.-
President Roosevelt today sent the fol-
| lowing message to congress:
Il transmit herewith a report from
the secretary of state with accompany.
| ing notes from the Mexican ambassa-
| dor and the Chinese charge daffaires.
| ad interim. which seek the co-opera-
! ton of the United States in such meas
| ures as will tend to secure and main
| tain fixed relationship between gold
| standard countries and silver standard
| countries. I recommend that the exec
utive be given such powers to lend the
| support of the United States in such
| manner and to such degree as he may
| deem expedient for the purposes of the
! two governments"
| The message was referred to the
committee on finances. In his COM
munication Secretary Hay says:
To Prevent Fluetuations.
1T is not asked that the United
! States modify its monetary system and
| it is distinctly disavowed that any
movement is contemplated for the res
toration of information bimetallism.
The opinion is EXPRESSED. however, by
4
rrents that consultations between the
United States and European powers
having dependencies in the Orient and
the independent countries, whose silver
money is in general use, may result in
| the adoption of monetary system
which will prevent the great f1uctua-
tions in exchange which now occur in
trade with the silver using countries.
| "If such a result can be achieved
| and it is pointed out that at least a
partial solution has been proposed in
| the United States in bill now pending
in the senate in regard to the Philip
| pine islands-greatb benefits would fol-
low to the trade ofthe world by MAX
| ing easier the access Of the products of
manufacturing nations to the markets
of China and the other silver using
countries.
| The consideration Of this subject
may have an important bearing also on
the payment of. the indemnity due by
China to certain European powers and
| to the United States by enabling the
Chinese empire to pssss- her monetary
system upon a basis 8 h1ch will make it
possible for her to r7see{ tIlese payments
in manner satisfactory t5 all the pow
ers. This result, if it could be accom-
plished would be of first importance,
not only to the United States and the
4 other powers having share in the in
| demnity payments out of China herself
and her future Developments"
The Chinese Memorandum.
The memoranda submitted by China
| and Mexico are practically identical.
| The Chinese note can be taken as typi
cal of Mexico. 1t says that the serious
results which are threatened by the
| recent fluctuations in the value of sill
yer bullion to the commerce both of
gold and silver standard countries
have induced the Chinese imperial
| government, acting in concert with the
Mexican government, to ask the CO.
operation of the United States in
seeking remedy. of these conditions
for the mutual benefit of all concerned
1t is pointed out that trade stability
| between the United States, a gold
| country, and China, a silver country,
is destroyed by variation of 20 per
| cent in the year in the price of silver
| bullion, as happened last year. Stabil-
ity in this respect is as important to
gold-using as to silver -using countries.
The silver using countries imported in
1902, almost exclusively from gold
of $574,625, 1928, excluding British In
/ dia and several. silver. countries in
| South America, which might be
| brought into an agreement to maintain
stability. The largest amount of this
| trade, namely $196,134,S42 went to
I China. This trade is now threatened
| with a decline, the limit of which no
| one can foresee.
Another Cause of Depression.
The heavy indemnity imposed by
certain other powers on the Chinese
government has further depressed sill
yer prices and threatens to reduce ma
terially the export trade from China
to the United States and Europe. This
trade with the United States is said
to have increased greatly within
twelve years, and is now but a slight
measure of what it might become with
stable currency.
1t is admitted that while a currency
readjustment in. itself would not ac-
complish such a Tremendous revolution
as would be involved in the creation of
trade of more than 81, ,000, ,000,0 900, it
would be, it is stated, osse of several
steps in that direction. II is distinct
ly declared that the g6Vernment of
China does not seek the restoration
of the free coinage Of silver by either
the gold or silver using nations.
1t is urged that If the United States
will cooperate with China and Mexi-
co in presenting this subject to other
governments it will aid greatly in Sc
curing a prompt and satisfactory solu-
ton of an irritating pr 9lem, which
threatens the silver using countries on
one hand, and the comi ercia1 pros
perity of gold-using cou tries on the
other hand. Serious consideration Of
the matter hv fha -sovQr ~as7ant of the