The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1904-07-01

nation toward that of the Philippines, The new
gold, which is far from being the case with the Co,
lombian silver now in use on the isthmus. In view
of the great fall in the value of silver bullion, how
ever, which has made our own silver coins more
than half fiat, !" the Panama project proposes to
coin subsidiary silver at the ratio of about 81 to J.
as in the case of the Philippines. In other words
coin substantially the size Of our silver dollar will
pass for fifty cents, and the other coins will be
given a corresponding ratio of size In order to
take a bond of fate and make assurance doubly
sure that the silver viii be kept at par with gold
our government has strongly urged that gold
drafts can be sold for silver in ease the quantity
of silver becomes redundant; and this proposal the
Panama commissioners have accepted
Our government has felt quite justified in con-
|sultng with the government of Panama on the sub
iect because an agreement between the two will per
nit the employment of the Panama currency in
the enormous disbursements required in the con
strueton Of the canal 1t obvious that the United
Estates could not afford to employ the Panama cur
lrency if it were not as good as gold. There mast
government by the high price of contracts and dis
content among lahorers and other employees by the
fluctuations in the money used where they work
If contractor is uncertain as to the money that he
win have to pay, even though fluctuations may ult
mately prove to his advantage, he is likely to add
from % to so per cent to his original estimates Of
the cost Of given work upon the gold basis and
Thereby increase the cost Of the canal to the govern
ment by tens of millions of dollars.
The question Of exchange win play very i'm
portant part in the money problems on the isthmus
Even if currency entirely of gold were used, ex
change might be so manipulated as to go to high
premium on one day or to send even an inferior
local currency to a premium on another day, as
repeatedly happened with the irredeemable paper
of Brazil under the empire. Admiral Walker and
Governor Davis ought to take care, in selecting a
fiscal agent for the Panama canal commission, that
the government and the people of Panama shall not
be at the mercy of exchange brokers beyond the pay
ment of reasonable and proper rates. They can
iedSH. uo tHlS W putting Sohc "AA sNaA
fiscal agent and by throwing the drafts of the canal
commission into the market or withholding them as
conditions may require, to maintain relative steadi
ness of exchange. A premium of or 10 per cent
on exchange would be as injurious to the contractor
Il having remittances to make to New York as de-
probation of currency to the same amount. 1t
would technically amount to depreciation OF the
currency although the real cause might be found in
the abnormal condition of the exchange market
caused by the investment of $130,000,000 Of Ameri.
can capital on the isthmus.
The fact that Secretary Taft and the Panama
commission have already considered this problem to
some extent is indicated by the letter addressed by
the secretary to the commissioners, whose essential
suggestions they have so cordially accepted. To the
tact and intelligence foresight of Secretary Taft
will be due the extension into two distant quarters
| of the world in which American interests have be.
come SO important within the last few years Of the
gold standard and the American dollar as the unit
of value.
4 @
j. ]. Hill stands high as an industrial and eco
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