The Montgomery advertiser., 1903-10-28
FAVOR RATIO OF B TO 1
COMMISSIONERS ON INTERIM TJoNAL EXCHANGE MAKE
 REPORT.
Seek to Improve the Currency sys- tems of Oriental Cou7tries-Na-
 tions Think Free Co.nage of s Silver Should Be Stopped.

Commission of International Exchange, whose report was made public yesterday bv the State Department are adopted, the ratio between silver and gold in the cur rency system to be established in the Orient will hereafter be 32 to l. The ratio European nations with whose representa- lives the commission discussed the mat ter.
 The commission was appointed by Pres ident Roosevelt in the spring in response to a request from the Governments or Mexico and China for the co-operation of the Government of the United states m such measures as will tend to restore ana maintain a fixed relationship between the moneys of the gold-standard countries and those of the silver-using countries. The members of the commission are Ii. H. Hanna of lndianapols, CnarIes A. oof of nant of the Morton Trust Company or New York and Professor Jeremiah w Jenks of Cornell University. The com. mission visited the capitals Of Great Britain, France, the Netherlands. Ger many and Russia and presented to those countries the general subject of adopting in the silver-using countries a currency system based upon gold. They directed their work primarily to securing the ap- proval of the leading powers to a plan for gold-exchange standard in China, but incidentally asked the European pow CTS not to adopt a similar system III tuelI dependencies in the Orient and to adopt A coinage unit issued in each country at substantially the same ratio to gold.
 Would Stimulate American Trade.
 The commission refers to the uncertain ties introduced into trade by the nuctua- tfons of exchange between gold ana silver countries and say that the adoption or stable exchange, by remedying these con ditions, would unquestionably stimulate the importation into China or the piro9- ducts of European and American mllis and factories. Many of these importa- tions would be in the form of advances of capital for the development or the nf investments would be made in the form of rails and rolling stock for new rall- ways. equipment for factor1es ana sup plies for the laborers engaged Tn extend ing railways and modern lnduStrldl melh' ods throughout China:
 1t is declared that if a new system be esta blished in China it should be placed on the gold basis at once, because in that that will 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 party with gold, there would be no appreciable ben eft to international trade until this parity were established.
 The commission summed up the results of consultations with the European pow CTS in the following terms:
 '.The representatives of all the powers consulted as has already been stated, ac- cepted in general way as deslrapie ana practicable the suggestions made by the commission of the United States. The character of these approVals warrants the statement that the work of the commis- sion up to this time has been entirely successful. Differences of opinion in re- gard to details were naturally encount- cred at different capitals, but they were overcome in many cases by mutual dls- cussion and comparison of views.
 Upon the soundness of the general proposition laid down by the Mexicans and American commissions-that the ad9p- ton of a gold-exchange standard in the CflVnY-IISinU countries greatly contribute to their economic pro gress-there was universal agreement q: every European capital where the subject was presented
 Would Stop Free Coinage.
 .'There was agreement upon the prin- cirle that such system must involve the continued large use Of s1lVer coins in order to conform to long-estabnshed customs and existing scales of value, put that free coinage of silver should be sGS- pended and the determination of the quantity of the coins taken under the coll trol of the state, in order that measures might be promptly taken to give them ., fixed relation with gold.
 ''IJpon the subject of the introduction of SL uniform gold-standard system into Chiue. there was unanimous agreement that such a system would be desirable and sLdVantag geous both to China and to the gold-standard countries which have large commercial dealings with her D. on the question. however, whether the gold sta lndard should be esta bished @ { the beginrG1g or should come after the intro dtIction of a uniform national currency upon tlAe silver basis there was some diff ference of opinion. Upon the part of five powers-$ Germany, France the Nether- lands. MA aXico and the United States there was agreement that the best method was to IA gin the issue of the new cur rency at 8 fixed gold par. while upon the part of GT eat Britain and Russia there was a disl ,sition to favor beginning on a silver basis with the view Of first SUD- plying the country with uniform cur rency and t-1en giving it, within q short interval, a itVed gold value.
 Upon the subject of adopting the re- latively unifC1 m ratio of about g to l ir the currency A Ystems to be esta ablished in the Orient by those countries and de pendencies WI ich are considering 8 change in theh- existing systems there was agreement in all countries except Russia. In Rus ss ia the wisdom of ratfe which would ple vent the exportation oi the coins by the ise in the price of silver was admitted bun. it was deemed best tc make the reservi tion. that each country should determine It's own ratio according to it's monetary ntI 'ds and economic con ditions Even in Russia. however, in dorsement was givC1r to the ratio of 32 tC l for China as con 'eSponding to actua economic conditions.