The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-07-21
FREWEN'S PLAN FOR SILVER.

FREwEN's PLAN FOR SILVER.
We have presented recently q propo.
sition by Sir Moreton Frewen for what
he calls the valorization of silver. This
plan as stated would require the CO.
operation Of Great Britain, Germany,
France, and the United States in ac-
tion which would gradually increase
the price Of silver. The reason why
be urges the increase in the price of
silver at the present time is that silver
may be made again a credit basis to
supplement gold. which is admittedly
insufficient in quantity as a basis for
the credit security and the banking
resources OF the world 1t is true that
gold has increased enormously in pro.
duction since the silver controversy
was on in strength, but in spite Of the
enormous increase in gold production,
the business of the world, and the
money required to do that business,
and the needs of the many banking
and trust companies have increased so
much more rapidly than the increase Of
gold, that the latter as complete
basis for all has been distanced, and
there is serious peril because Of the
insufficiency Of. gold to meet the con.
ditions imposed upon 1T as the founda-
tion for the enormous superstructure Of
credit and reserves that is called for
by the business Of the world
Mr., Frewen S proposition was made
public first in this country, and it has
taken some time to get response from
Great Britain by way Of criticism Of
his plan. This response has now been
received IN part, especially so far as
the London Financial Times is con
cerned. 1t must be admitted. however,
that the Financial Times discusses the
question in rather a bigoted and mar.
row way. 1t considers the Frewen plan
merely a revival Of the former bimetal-
lism movement, and denounces it ac-
cordingly. IT goes through Mr.. Ere
wen s tables and arguments and finally
reaches the same old stupid proposition
that we had so often reiterated during
the silver agitation in this country
when it was proposed to have the free
coinage of silver; the reply being then
that nobody wants to pay full value
for "short dollar Similarly the
London Financial Times now says the
people of India don Z want to pay ZIG
pence for 9penny rupee It will be
observed that that was in principle the
same old response in this country when
the free coinage of silver agitation was
on.
But Mr.. Frewen makes no PROPOSE.
ton for anybody TO pay GIG pence for
9-penuy rupee. He merely pro.
poses yalorization plan for silver
which will raise 1T out OF the 9-pence
rupee class, and the proposition he
makes is not for bimetallism, but to
strengthen the business and banking
credits by raising the commercial value
Of silver, Still, if the view taken by
the London Financial Times, quite in
the old rut, is to be considered as
forerunner of the way Mr.. Freweu IS
valorization scheme is to be received
in Great Britain, then all hope of it
must be gwen up.
But his scheme is in fact a good and
practical one, only needing the cooper
alton of the four nations mentioned to
put it in practical working condition,
and the world needs the reinforcement
to the bank and credit foundations
which he proposes. So far as India is
concerned. Great Britain is all the time
legislating and fixing the value of the
rupee and making discounts and i'm
port charges and all that sort Of thing
which fix the value of silver IN the
markets of India. Therefore, the old
stock argument that governments can
not change the commercial value of
silver as metal, is entirely exploded,
because that is being done all the time
But we are sorry to see Sir Moreton
Frewen's scheme received with such
bigoted stupidity as the Financial
Times exhibits. And unless the bust
ness world of Great Britain can wake
up and expand its views. the danger
Of topping credits by reason of the in
sufficiency Of the base upon which
they are reared. must be endured until
the ultimate cure is forced