The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-06-07

Iulr I'll. q ferfr rntHitve ~
.ltv ry tirifi0i 4 towet
... u.fftu faust fomrtuv
~ .r. tIa rIuimisatnrer ~ the
a. .ru rrrtrfri tho MI sinai
I...r.rr .uffrrry tNd we
.. .y rfe dent lirosevrlt =
.,.um. t.n Ho international
... .r..Iioi with turopean
. rrftfl T., siciNg crater
.Ilrrp Uriwcrn auld and
.In,r.os IN fsatrna" 4" 4
,r, rhtnee In The rhilirrine
- ..Ht.l VIZ tlnHnt ferlicf
.r. .... ,ei.n for y chanae In m"
...a ~ tho Philippine c,lns
r, ... ...r - silver hulli1h This
M .aI nearly " per cent ~ tho
.r..r ~ 'hree yeafa silver
49, e. .to Iord almost continuously
- ...,t. January iona ~ dismal was
~, .HIt shrewd specultinrs In ION
dot ml.. ' ~ almost steady practice w
,.I ...s, .u.r' and trust TO tho continuous
a...rs r.iNlo them 10 covet their nm
,nr. a. o. urnhi
.vt.. r.r mamlcra NJ the commission
=, international exchange we're in London
I, tho ....rr = lan7. there were thoss who
AID ,r., l.o price " silver would not stop
falling I,'. p touched n shilling an ounce.
vbot , .. ,u-iderrd that the price at the
IA le,,' rlrtv was about al pence. and
,.,, tho r...o I'M 1903 WIS still u it-i5 pence.
tho apr,IIur character of n decline To a
,blHrr ..r,vclve pencel becomes apparent.
Va, tho fall had been 80 persistent that
aL.ae..aEa ~ tho atlNaF
market saw little hope Of stopping II. Hut
about 'h.. tine came a turn in the tide.
silver frat became steady. then firm, and
finally began n advance, until by degrees
II Oor back 10 to 81 pence early last month.
This va some points above the parity OF
the Philippine coins, which were issued at
the ratio Of about 81 to l."
How did this change in the course OF
silver come ahoutY
There are several reasons replied
Mr.. Conant. In the first place, Govern
ments which had been drawing upon their
stock. Of old coin for their subsidiary coin
ase-lke Germany, the countries Of the
Latin Union, and the United States-came
to the end of their supplies. They have
either already appeared or will soon APP
near in the bullion market as purchasers
Of silver. In the second place may be
suggested the large demand for silver in
Manchuria, growing out Of the concentra-
ton there Of large numbers of Japanese
and Russian troops This would apparently
he only a temporary influence, but the fact
seems to be that this silver is mostly re-
naming in Manchuria or drifting into China
instead Of coming back into the market
for silver bullion.
In the third place. and perhaps most
important, is the demand for silver in India.
The extension of the railway network in
India is constantly opening up new ar a
Of cultivation, whose product is being
brought to arket and sold for silver.
This results in an increased absorption
Of currency in these newly opened dis
trcts, in addition to the heavy and per-
sistent demand which has always existed
in India, In the fourth place, the policy
Of the Commission on International Ex-
change in seeking stability of exchange
between the gold and silver countries
seems to have done something to arrest
the decline in the white metal. This CON-
mission recommended TO the European
Governments that they purchase silver
for subsidiary coinage and for other proper
purposes with greater regularity than
had been the custom. The Government
Of British India acted promptly upon this
recommendation and have made their
purchases with a good deal Of regularity
for the last two years. They have recently
adopted the policy of accommodating a store
Of bullion to anticipate coinage demands,
instead Of waiting until the pressure for
new coins actually arose.
why was not this change of conditions
nrttttHatAI u,I,N the DhiIrntpA 1i-,-A
bill was passed."
1T wa anticipated to a certain extent.
The report which | made to the War Depart
ment, which carried out in Getail the views
OF Coy. Taft and the Philippine Commission,
recommended a coin of the weight of $685.
grains If the ~tineness of SS5 thousandths.
This would have left a leeway of about 20
per cent. between the price of silver at
that time and the silver contents of the coin.
In other words, silver could nave risen 20
per cent. above the price in 1901 and not have
carried the contents Of the proposed coin
sbove its face value.
The matter was delayed, however. for a
year, and when Congress oOk action In
March, 1903, silver was at 80 low an ebb that
II seemed prudent to adopt a coin of sub
s~tantially the weight and fineness Of the
Mexican dollar, which had been 50 long in Use
inthe Philippines. Had the original recon-
mendation Of the commission beer adopted
,helt "oulO sun De n margin between the
bullion v2lue and the face value Of the coins
and recolnage would not have beer called for
al present. In view Of the steady upward
course of silver, however. during the past
three years it may happen that it win go
above even this margin, and if a change is
now made should recommend that the coin
be made considerably lighter than was
PROPOSE in the original plar IF the COM
mission "
Just what will rs the affect of the pro-
posed change?"
The proposition is to leave to the Philip
pine Commission the authority to reduce
either the weight or the fneness of the coins
hereafter issued, or to reduce both weight
ana %hneness, in their discretion. | under
stand that the Senate bill reported by
Senator Lodge does not restrict the COM
mission IN respect to the exact change 10
he made except that the fineness shall. not
De reduced below seven-tenths. The com
mission viii also have authority to recoin
The existing coins as they are received into
me treasury, If this is considered necessary,
lhe result Of the recoinage Of the 80, 900. 900
pesos which have already been issued
would afford considerable profit to the
rhlippln" Treasury, If they were reooined
o. the basis originally proposed there
would he a margin of about IL per cent,
winch would amount to 50, $50, 900. which
would be a source Of profit to the Treasury"
would not this policy be equivalent to
deha-erent of the ~coinage?r
r,,Not 81 nl. The coinage system of the
fmlpNir" Islands is based ON gold. The
H0An "a HI-.