The San Francisco call., 1909-11-17
WOULD [QUALzf
MONETARY VALUES
New Association Proposes to
Raise Price of Silver in
the Orient
Branch of the Fair Exchanges
Leagues to Be Organized in
San Francisco

A branch of the Fair Exchanges
leagues is to be formed in San Fran
cisco. The organiza tion is interna-
tional in scope and has for its purpose
an adjustment of monetary values be-
tween the oriental countries and Eu-
rope and America. 1t is the theory of
the members of the leagues that the
great fuctuation in the value of silver
in Asia is in large measure respon-
sible for the financial panics that
periodically sweep around the world.
An adjustment of values, 1t is con-
tended, viii mean the expansion of the
trade of Europe and America in the
lands across the Pacific.
The movement has been inaugurated
in. San Francisco by Colvin B. Brown,
the general secretary of the society,
Brown, was formerly the New York
representative of the California Pro-
motion committee is at present in
this city in the interest of the leagues.
FIRST MEETING
The first meeting Will be held here
on November "a, when the subject will
be discussed by Morton Frewen, a
leading hnancier of New York. Fre-
Wen is widely known as a writer on
financial topics. He is son in law of
August Belmont. From here he will
go east, speaking at Salt Lake City,
Denver and other points.
John Hays Hammond is one of the
leading spirits of the movement in
America James J. Hill. the railway
magnate. is also deeply interested. as
was the late E. II. Hartman.
Brown outlined yesterday the plan
and scope of the work in hand He,
said:
The Fair Exchanges lea gues was or
ganized by leading economists and
financiers in Europe and New York.
Many of those connected with the
movement have an international repu-
tation- The president of the leagues
is Edward Tuck of Paris. The Eng
lish members are Sir William Houlds
worth of Manchester, Herbert Gibbs
and Lord Desborough of London. One
of the most active New Workers in the
movement is John Hays Hammond.
CAUSE OF PANICS
'sThe movers in the Fair Exchanges
lea cues believe that financial panics
have been largely due to falling eX-
changes in the orient, that these fall
ing exchanges lessen the ability of
500. 0O0 600 people to buy American and
European products and act as bonus
in the manufa cture by them of such
products for export
For 1000 years or more the orient
has been accommodating silver. 1t is the
money metal of almost onehalf the
human race. Statistics compiled over
period of many years show that wages
in the orient have nuctuated to a very
small degree. The wages of labor paid
in the rupee are practically the same
today as they We're III 1873.
The oriental. buying from US, takes
his silver to the bank and buys a gold
bill Of exchange. paying silver for the
bill. Suppose he buys a bolt of cloth
or a pound of flour, and, say, the gold
price in America was IS. In 1873 he
took three of his dollars or taels and
bought his bill of exchange. In 1895
silver fell Then he had to take five of
mis- taeIs or silver dollars In 1907 sill.
yer fell again, and the oriental found in
order to buy his bill OF exchange for s5
he had to pay sS. In other words, the
price of his -four or cotton cloth had
increased from So TO IS. The result has
been that he has quit buying.
BRITISH PLAN
IN 1888 the British government ap-
pointed a commission on gold and sill
Yer. This commission reported prac-
tfcalIy unanimously in favor of plan
that would raise the price of silver and
thereby the rate of exchange in the
orient They suggested that small notes
be. issued that would not be legal tender
for more than sovereigns or $40; that
these notes be secured by silver coin or
bullion: that the purchase of the neces-
sary silver be extended over period
Of years, and that these notes when
issued and as issued be used to retire
gold certificates and gold coin into a
central reserve This is plan which
the Fair Exchanges leagues believed to
he entirely feasible"