Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-10-26
FOR A FIXED RATIO
TOUR OF THE INTERNATIONAL
EXCHANGE COMMISSION.
General Agreement Found as to Desirs
ability Of a Fixed Ratio Between
Gold and Silver.


change has made report to the State De-
partment concerning It's recent trip abroad
| This commission was appointed by Presi-
dent Roosevelt In the spring in response to
a request from the governments of Mex
leo and China for the cooperation OF the
! government of the United States In such
measures will tend to restore and main
tain & fixed relationship between the mon
| eys OF the Gold-standard countries and
! those OF the silver using countries The
members of the commission are Messrs.
H. H. Hanna OF Indianapolis, Charles A.
| Conant of the Morton Trust Company Of
New York and Prof. jeremiah w. jerks of
Cornell University. Mr.. Jules Guthridgs
accompanied the commission as secretary.
Visited by the Commission.
The commissioners report that they Wis
tied the capitals OF Great Britain. France.
the Netherlands. Germany and Russia and
| presented to those countries the general
subject of adopting in the silver-using
countries currency system based upon
gold They directed their work primarily
to obtaining the approval of the leading
powers TO plan for gold-eNchange
standard in China: but incidentally asked
the European powers to adopt similar
system in their dependencies In the orient
and to adopt a coinage unit issued in each
| country at substantially the same ratio to
gold
Effect of Stable Exchange.
The commissioners refer to the uncertain
ties introduced into trade by the fuctua-
tons of exchange between gold and silver
countries and say that the adoption of a
| stable exchange. by remedyiug these condi-
tons. would unquestionably stimulate the
importation into China of the products OF
European and American mills and factories.
Many of these importations would be In the
nf adj n d
ment of the rich natural resources OF China.
These investments would be made In the
| form of rails and rolling stock for new rail-
ways. equipment for factories and supplies
for the faborers engaged in extending rail-
| ways and modern industrial methods
| throughout China.
1t Is declared that IL a new system be es-
| tablished in China II should be placed on
! the gold basis at once. because in that way
foreign nations and China herself will begin
| to get the benefits at once. Should the sys-
| tenn be begun on the silver basis with the
| intention of establishing the silver coins
! later on a parity with gold. there would be
no appreciable benefit to international trade
until this party were established. While the
| interior trade of the country would to some
extent bs encouraged by national currency
| upon any uniform basis, a change in politi-
cal or economic conditions In China might
postpone for many years the benefits sought
| in establishing stable monetary relations
between China and foreign countries
Plan Proposed for China.
The plan proposed for China is based upon
what is commonly called the gold exchange
standard similar TO the plan recently adopt
| ed by the Congress OF the United States for
the Philippines and to the plan which has
been In operation in the Netherlands and
the Dutch East Indies for twentyeight
years.
In discussing the effect of the gold-ex-
change system upon the price of silver bull
lion the commissioners state that there was
suggested to the various governments the
wisdom of so distributing the purchases OF
silver which might be actually required by
them for coinage purposes as to cause as
| little disturbance as possible to the market
| 1t is declared that 1t would be unwise for
| any government to attempt to maintain the
price of silver by purchasing beyond Its
regular needs and storing or coming il, and
that no one whose knowledge of the none
tary history of the past few years is at all
complete would advocate such a course.
Views of tie Powers. 90.
The commissioners summed up the re-
suits of their consultation with the Eu-
ropean powers in the following terms:
The representatives of all the powers
consulted. as has already been stated,
accepted in general way as desirable
and practicable the suggestion made by
the commission of the United States The
character of these approvals warrants
the sta tement that the work Of the COM
mission up to this time has been entirely
successful. Differences of opinion in
gard to details were naturally encoun-
tered at different capitals, but they were
overcome in many cases by mutual dis
cussion and comparison of views.
Thus, upon he part of five powers
Germany. France. the Netherlands. Mex
leo and the United States-there was
agreement that the best method was to
begin the issue of the new currency at
a fixed gold par. while upon the part of
Great Britain and Russia there
disposition to favor beginning on silver
basis, with the view of first supplying
the country with a uniform currency and
then giving it. within a short interval, a
fixed gold value.
Ratio of 80 to 1.
Upon the subject of adopting the rela-
lively uniform ratio of about 81 to 1 in
the currency systems to be established in
the orient by those countries and de-
tendencies which are considering a
change In their existing systems, there
was agreement in all countries except
Russia. In Russia the wisdom of a ratio
which would prevent the expectation OF
the coins by the rise in the price of sill
YER was admitted. but 1t was deemed best
to make the reservation that each coun-
try should determine its own ratio ac-
cerding to its monetary needs and eco
nomtc conditions. Even in Russia, how
ever. Endorsement was given to the
ito of 81 to 1 for China corresponding
to actual economic conditions"
"Navy Clerks" and Others.