The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-26
Of the European Powers
Were Uniformly Men OF Great Emil
nence I'm the World Of Finance.
A GOLD STANDARD FOR CHINA
FIVE POWERS BELIEVE 1T SHOULD
BE ESTABLISHED AT ONCE.
Two Think a Uniform Silver Coinage
Should Precede It-Other Phases of
the Points Discussed.

WASHINGTON, Oct. 25.-The report of
the Commission on International Exchange
was made public on Saturday at the State
Department. The commission was appointed
by President Roosevelt in the spring in re-
Spouse to a request from the governments
of Mexico and China for the cooperation of
the government of the United States in
such measures as will tend to restore and
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 Messrs. w.
III. Hanna of Indianapolis Charles A. Con-
ant OF the Morton Trust Company Of New
York and Prof. jeremiah w. jerks of Cor
nell University. The commission reports
that they visited the capitals of Great Brit
ain, France, the Netherlands, Germany 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 pri-
marily to securing the approval of the lead
ing powers to plan for gold-exchange
standard in China, but incidently asked the
European powers to adopt similar system
in their dependencies in the Orient and to
try at Substantially the same ratio to gold.
The American commission was accom-
panied on its tour by a commission of the
Republic of Mexico, and the two commits
sions co-operated in the presentation of their
mission to the European powers. A special
commission to confer with them was APP
pointed by the government of each country
visited 1t is declared in the report that
men of eminence in their respective coun-
tries by reason OF their financial and off,
cial positions. Thus, in three countries
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 CONNER
cial treaty between Great Britain and
China acted as chairman. In every country
officials of their representative Oriental
banks-in Great Britain, the Hongkong and
Shanghai Banking Corporation; in France,
the Bank of Ind0-China; In Germany, the
German-Asiatic Bank; in Russia, the Russo
Chinese Bank-sat on the commission.
FLUCTUATING EXCHANGE.
The commission alludes to the uncertain
ties introduced into trade by the fiuctua-
tons of exchange between gold and silver
countries and says that the adoption of a
staple exchange, by remedying these con-
ditions, 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
| form of advances of capital for the develop
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 laborers engaged in extending rail-
ways and modern industrial methods
throughout China.
| 1t is declared that il a new system be
established in China it should be placed on
| the gold basis at once, because i'm that way
foreign nations and China herself will begin
to get the benefits at once. Should the sys-
TEN 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 benefit TO international trade
| the interior trade of the country would, to
some extent, be encouraged by a national
currency upon any uniform basis. a change
| in political or economic conditions in China
might postpone for many years the benefits
sought in establishing stable monetary re-
| latiOnS between China and foreign countries
The experience of other countries is cited
to demonstrate the practicabilty of the
proposed system.
! In discussing the erect or the gOld-eN-
change system upon the price of silver
bullion the commission states 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 to cause
as little disturbance as possible to the mar
ket. 1t is declared that Ii would be unwise
for any government to attempt to main
/ tain the price of silver by purchasing be-
yond its regular needs and storing or coin
! ing Ii. and that no one whose knowledge
of the monetary history Of the past few
| years is at all complete would advocate
such a course. The propriety of so dis
| tributing the demand for an article how
! ever, as not to unduly disturb the market
is recognized in many fields especially in
| the market for money, whose prudent dis
| tribution is the subject constantly of pre-
occupations in the highest circles of
finance. If the ratio adopted by the differ
ent governments that are now about insti-
tutinS new systems of coinage were fixed,
as suggested. at about 30 to 1. that fact
! governments, without any formal agree
ment, to suspend their purchases whenever
the price of silver per ounce rose to Esd
or ed
RESULTS SUMMARIZED.
The commission summed up the results
of its consultation with the European
powers in the following terms:
THE representatives of all the powers
| consulted accepted in a general way as
desirable and practicable the suggestion
|
States. The character of these approvals
warrants the statement that the work OF
the commission up to this time has been
entirely successful. Differences of opinion
in regard 10 details were naturally en-
countered at different capitals but they
were overcome in many cases by mutual
discussion and comparison OF views.
ION the soundness of the general promo.
sition laid down by the Mexican and Amer
lean commissions-that the adoption OF a
gold-exchange standard In the present sill.
| would ri
ute TO their economic progress-there was
universal agreement at every European
capital where the subject was presented
There was agreement on the principle thai
such a system must involve the con.
tinued large use of silver coins i'm order tc
conform to long-established customs and
existing scales OF value, but that free
coinage OF silver should be suspended and
the determination of the quantity of tins