The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-12-02
MORETON FREWEN POINTS OUT DANGER

previous six months. The quotation
which | have read from Chc-roo fairly
represents the replies Of the entire con-
suiar service. and since that time silver
mas fallen much lower Still. Tho great
laIi i'm silver exchange. the Cunsuls agree
mas paralyZed trade with China. In Seat
tie Tacoma. Portland and san Frsncisco
there Is no merchant but knows it,
What has happened 10 our exports ."
said j. J. Ilil to ne last autumn i'm ST
PAU. ~ had hoped 10 put a bag Of
wheat INTO tn" cottage Of every China
man, now not a bag can bc shipped. q"
| The exports of your lumber and nour to
Asia. which had just commenced i'm so
promising fashion; the exports. too OF
steel rails and OF "ottous, where are th"y?
Tho demand of China with three hundred
millions Of customers. has suddenly dried
up.
Problem of the Exchanges.
What sort OF mechanism is this cx-
change mechanism? Now. does a break
IN silver exchange hold MP the move
mcnt Of goods To China? 1t seems 10 mo
that IT docs, and | must attempt TO OK
PLAIN The reason in language jntcligibl"
TO you. How IL foreign trade carricd on?
Let me put IT IN this way: one of YOU
gentlemen wishes TO purchase an English
motor car You have decided Ia buy -
Nnpler at tho price quoted. thousand
soNcrciGns and you 80 TO my friend Mr.
Mccormick here and tell him YOU wish 10
pay tho London firm thousand pounds
& &IlI iookS at the exchange quotation
Very well, MIR smith give inc Your
check for $3.50 and viii give you n bin
OF exchange On London for a thousand
pounds The draft is sent and the
motor paid for. f}ut suppose a little later
Mr., Smith wants second motor can, and
he goes tu Mr.. Mccormick 10 buy another
thousand soycrcigus. He now saws.
Oh. Mr.. smith there las been n
hlS fall In exchange and instead OF
$3.50 You must givc me check FOR
$1,000 because II new talSos no, si.S7, but
- To buy sovereign We'll. Mr. smith
probably gays. II cannot afford it, Mir.
J@noE hrrr Is ma,Ing automobiles and
offers IN" on" about good as the Lon
don Napier car Tor $4,000, | viii buy a car
from Mr.. Jones. Now his is exactly
what IS happening In the case Of our
rad" win the Orient. Thirty years ago.
II Shanghai merchant wanted To buy
your wheat or flour or lumber. or cot
toms, he went Ia his banker with three
ta"ls and bnueht bill on New YurI;
or San Francisco or London for five gold
collars or sovereign: hut today in
stead of ;hvcc taclS he must Give eight
ta"ls for five gold dollars
And rs all authorities are agreed that
wages ANA prices i'm China arc not sen
sblN higher, II is clear that for thr
Chinanlan our gold exchange has conc
clear out of sight, and that tho Orient,
having lost all power Ia purchase our
goods IS being forced TO manufacture n
hundred articles which formerly sh"
bought from ms. Cotton and iutc factories
have sprung MP in incredible numbers all
over In" far cast. and each fresh CaIl i'm
exchange transfers from us 60 them some
fresh Industry. Years ago our cotton and
juie and other textile Trades were being
transferred, chiefly To India hv the fan
IN tho rupee exchange. Last y"ar Han
N"w commenced 10 export pig iron Of the
highest quality 10 Portland This yrar
the. rrSt Chimes" mill Ia roll steel rails
has commenced at IIankuw on a scale OF
lnn tons u day