Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-14
BACON SAYS PHILIPPINES
ARE ON SILVER BASIS
Senator Root Says They Are
Not, and a Sharp Con-
troversy Follows.

The old silver-gold monetary contro-
versy cropped out in the Senate yester-
day, when Senator Bacon of Georgia.
democrat took direct exception to the
statement of Senator Root Of New York,
republican, that the Philippines were ON q
gold basis.
Senator Bacon asked whether it is a
fact that the business of the Philippine
Islands is conducted on gold basis" and
Mr.. Root replied that it is.
when I say on a gold basis do not
mean whether it is exchangeable into gold
the Philippine islands," remarked Sena-
tor Bacon. THE evidence as to whether
country is on a gold basis is whether
prices are quoted in gold"
Prices are quoted in the peso which is
fixed by act Of Congress, containing GER
tain amount of silver, approximately
equal in value to one-half our gold dol
lar" replied MIR. Root. 1.-THE currency
which is named in the quotations is that
silver currency in which by law each
peso is exactly equal to one-half gold
equal to one-half gold dollar Is pro-
tected by this reserve just as we have a
reserve to protect our greenbackS as
equal to gold dollar
Thinks Mr.. Root Is Wrong.
but 1 still think" persisted Mr.. Bacon,
that the senator from New York was
not distinguished by his usual accuracy
when he made the statement, as under
stood him to make it, that the business
and financial transactions Of the Philip
pine Islands are upon gold basis
To this diplomatic and delicate way of
Iii P0rnu fhn1lQhf
he was wrong, Mr.: Foot replied
IT think I was strictly accurate. The
Philippines are on a gold basis. just as
Mexico is on a gold basis and just as we
prices in dollars. the prices are payable
in greenbacks. The greenbacks are kept
at q fixed gold valuation by our reserve.
The language Of diplomacy was gradual
ly changing to a more direct statement aae,n :;
flared back Senator Bacon. the demo-
crat. II think there is a wide distinction
between being upon a silver OASIS, with
the value of the silver coin guaranteed,
and being upon a gold basis. They are
upon a silver basis 1t is the common
currency Of that country, and the prices
are quoted in the common currency OF
that country, in the peso, which is sill
yer coin corresponding nearly to our dol
distinction without q difference, but still
j think there is a very wide and very
marked distinction between country
upon a silver basis where that value of
the coin is guaranteed to be kept at a
certain value and a country upon an
other basis the unit of which Is gold
dollar"
Root Refuses to Quarrel.
IT shall not quarrel with the senator
from Georgia about the sense in which
he uses words; he can use them to please
himself" was MT. Roots reply.
81 am sure the senator from New York
INDUCES himself in that liberty very
freely" retorted Mr.. Bacon.
when l say a country is on gold
basis. 1 mean that the currency in which
it's business is transacted has a fixed and
immntable value in gold and is subject
to no fluctuations of exchange because Of
the difference in the value OF gold and no
silver" Mr. Root went on to say. Il
may be wrong about that, but I do not
think I am. However. if 1 am. then let
us agree that the senator from Georgia
will use the term as he pleases and that
I may use the term as I please
.'The senator from New York certainly
has that liberty Mr.. Bacon flashed back