The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-12-26
.InJURIOUSLY
Affected BY
CHEAP SILVER
hina Finds 1t Difficult to Do
Business With Gold STAN
dard Countries.
CONSULAR REPORTS
BEFORE COMMISSION
EVIDENTLY CALLED FOR TO
COUNTERPART SIR MoREToN
FREWEN's PROPOSAL.

Washington, Dec. 25.-That business
/ conditions in the Orient have been seri-
/ ously embarrassed by fluctuations in the
1 price Of silver, and that the fluctuations
r. ther than the mere depreciation in the
value Of the white metal have caused this
/ commercial difficulty. is shown by
1 large number of special consular reports
received by the national monetary COM
/ mission. These reports indicate that IN
Japan, where the gold standard is the
basis of exche nge, there has been no un-
/ settled condition from that cause. but IN
China, with the silver standard, dealings
i with gold standard countries have been
/ injuriously affected by changes in the
price of silver which make the profit OF
a transaction largely dependent on the
trend OF exchange. The prevailing state
ment of the reports is that prices are
largely regulated by rates Of exchange.
Lodge Called for Reports.
These several consular reports were
called for by the statement at the request
Of Senator Lodge. Consular officers Were
requested to report what had been the
tendency of prices since 1886 measured
BY silver currency, whether firms import
ing from the United States. Great Britain
and Germany had found the depreciation
Of silver a matter of serious embarrass-
ment TO their business during the last
year. and whether the depreciation of
silver had stimulated considerably the ex-
port trade.
Charles DENLY. consul general at Shang-
hal, China. says when silver is high i'm
ports are increased and profits are made
on goods stocked at lower rates. Sim
aTly when silver falls imPortations be-
come Improbable and heavy losses result
on goods in stock.
Importing Firms Embarrassed.
Importing firms. he says. have found
their legitimate trade seriously embar-
rassed during the past twelve months by
the depreciation of silver This loss does
not usually fall on the foreign wholesale
Importer. as he does not carry large
socke. but orders goods on commission
for Chinese buyers. The recent large
fuctUation in the value of local currency
IN comparison with gold, he adds. ruined
hundreds of Chinese merchants who had
dealings with foreigners. Normally. he
declares. this depreciation would have
simulated the export trade. but the mar
kets were so affected by other concerns
that Il was difficult to trace this influ-
ence. The foreign trade in general. he
says, has been disturbed since 1890 by
flacIuations in the gold value of silver.
China. SAYS that the foreign importing
firms at Annoy all assert that the depre-
eiatse4a of silver during the past twelve
months has seriously affected their bust
ness.
Difficult to Shaw.
4
China. states there Is no doubt that the
depreciation of silver stimulates the ex-
ports of silver-using countries, but it is
difficult TO show this in any given ar
tce.
That since 1896 the tendency of prices
has been upward. that the depreciation
has affected the local importers to a Sc
rious extent on account of being unable
10 obtain higher prices from the Chinese
consumer. and that this depreciation has
not stimulated the export trade to the ex-
tent expected, is the view of Albert W.
P0ntius. vice consul general at Hankow
China. In the natural course of events
he says, the low exchange promotes ex-
ports and pTecludes imports and vice
versa, and it is believed by some of our
merchants, says Samuel l. Gracey. con-
sui at Foo Chow. China, that the de-
probation OF silver has practically been
me salvation Of the importing firms as
Inc Chinaman has been unable to buy as
cheapiy from foreign countries as he can
been bought when the exchange was
Cotton Goods Still in Demand.
Stuart J. Fuller vice consul general ut
Hong Kong, SAYS he learns from import
ers Of cotton goods that the fall in silver
~ the last twelve months has not sub
stantially diminished the demand for cot
ton goods. Withs regard to exports. he
adds that while the general tendency of a
low exchange is 10 stimulate exports this
Vas more than counteracted during the
Year by the general financial depression
III Europe and America.
mat Tue prices of commodities at Can
ION. thina-. have. generally speaking
SonSlaerably advanced since 1895. that tina
trepfeeiatiop Of silver during the last year
- oIfered no serious embarrassment to
.Hporung Hrrus.s and that any deprecia-
Lol IN silver does not increase the export
uaues as The fall Is generally compen-
Salea oy arise in the local cost which
ngdnS that the home buyer pays the same
~ lh gold, is the opinion of Willard 3.
num- wee coqsuf general at Canton.
KoSsA Not Affected.
~; Speaking 81 tESoreo. Consul General
.u9ihds Sarhmofs at Seoul, says that
sGaoe conditions There are not much af-
y,ed by the ratGffor the exchange of
~ me country practically having a
EMU standard through its use of japanese
" NE principal countries having bust
~ TIeiduons with Kobe. Japan" says
So onSll Walter Gansett. THE United
-'''' Great Britain, British India, Ger
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