Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1909-12-02
International Authority on Cur
rency and Banking Speaks
At Commercial Club.
THE ORIENTAL PROBLEM.
characterized as Profound and Far
Reaching NEUTRALITY-SUSPICIOUS.
Between White and Yellow.

Morcton Frewen. the distinguishe,
economist of England. an international
authority on currency and banking
club before a large asscmblage of til,
business and professional men of Sal
Lake, Tho currency in Its relation
10 the oriental trade was his topic
but he diverged numberless times OF
interesting tangcnts. At the conclu.
sion of the address Col. Z. A Wall
moved that a vote of thanks. be ten
dcred to Mr.. Frewen. and this was
heartily given.
The exchange problem with the orient
was characterized by Mr.. Frewen as
mo mere issue of controversial econom-
les, but a profound and far-reachins
philosophy" He said further:
.The question as we see II. is not a
question as between the yellow money
and the white money. but as between
the yellow races and the white races
We have always believed that white
men, white financicrs, white statesmen,
werc digging the graves OF their race by
that western legislation which has re-
duced by nearly two-thirds the rates of
silver exchange with 1000. 900 of Ash
atics. We have consistently maintained
that as the exchange value of silver
falls, the power OF Asia to buy our
goods has in that proportion diminish
cd and that as factories closed their
doors here. those factories reopened in
Asia In the statement shall make to-
night. we invite the consideration of
this friendly but judicial gathering. as
to whether those reasons for alarm
which you, Judge Goodwin. have held
up to your community in days past
hou bcrn rithnr liciona
ture.
PRESENT RATE A CHECK.
THE present rate of exchange is a
check to American-Aslatic trade so far
as exports from the United States are
concerned, Commercial agents tell me
that they can import nothing. Ameri-
can flour has stopped coming. am
told that many American exports have
never been cheaper to the foreign buyer
than at present, and that therefore our
exports ought to be increasing; but
comparison Of the rate of exchange
for last year and now shows that in
order to eQualize the cost to the foreign
buyer of 500 (gold) worth of goods.
they must now be sold for $50 gold.
Thus II is seen that unless a reduc-
ton materially over 20 per cent of last
years price is made. American produc-
ers are not able to hold out any finen-
cial inducement TO their China buyers,
as the extra items of freight and in
surance paid in gold would compel i
discount from last years price of at |
least q per cent.
What sort of a mechanism is this |
exchange mechanism? Now. does a |
break In silver exchange hold up the |
movement of goods To China? It seems
10 me that it does, and / must attempt |
to explain the reason in language in
telligible to you How is foreign trade
carried on? Let me put it in this way:
One OF you gentlemen wishes to pur-
chase an English motor car. You have
decided to buy a Napier at the price
quoted, a thousand soverei8ns, and
you go to my friend, Mr.. McCor-
nick here and tell him you wish to
pay the London firm a1.oO0. He looks
at the exchange quotation today, s4S7
on London. and he says, every we'll,
sir. Smith. give me your check for
$3.50 and I will give you a bill OF cx-
draft is sent and the motor paid for.
But suppose little later Mr.. Smith
wants a second motor car and he goes
TO Mr.. Mccormick to buy another 1000
sovereigns. He now says, oh. Nh.
Smith. there has been a big fall in
exchange and instead of $3.50 yol
must give me a check for 81, 900. because
sovereign Well. Mr.. Smith probably
says. I cannot AFFORD 1t. Mr.. Jones
here Is making automobiles and offers
me one about as good as the London
Napier car for $4,000; I will buy a car
from Mr. Jones' Now, this is exactly
what is happening in the case of our
trade with the orient Thirty years
ago, il a Shanghai merchant wanted to
buy your wheat or flour or lumber or
cotton, lie went to his banker with
three taeIs and bought a bill on New
York OF San Francisco or London for
hve gold dollars or sovereign; but
today, instead OF thrce taels he must
give eight taels for five gold dollars.
THE DIRECT RESULT.
And as all authorities are agreed
That wages and prices in China AFRO
not sensibly higher. it is clear that for
The Chinaman our gold exchange has
gone clear out of sight, and that the
orient, having lost all power to pur-
cnase our goods, is being forced to
q hundred articles which
Formerly she bought from us. Cotton
and Jute factories have sprung UP In
Incredible numbers all over tho FAR
,asf. and each fresh fall in exchange
transfers. from US to them some fresh
industry. Years ago our cotton and
Iute and other textile trades were be-
ng transferred. chiefly to India, by
me fall In the rupee exchange. Last I
year Hankow commenced to export | {
pig iron of the highest quality to Port
and. This year the first Chinese mill |