New-York tribune., 1917-12-12
Bankers Oppose
Any Change in
Money Standard
BimetalIism Would Upset
World Finances, They
Contend

Wall Street bankers are strongly oP'
posed 10 the proposal TO substitute for
the gold standard a bimetallic basis
for the settlement OF international OBJ
legations. The discussion Of that pro-
posal, reported TO be under way be-
tween the United States Treasury, the
Allies and neLtral governments, is not
taken very seriously, financiers repeat
ad,y expressing the opinion that this
government would surely reject the
plsn. Owing TO our dominant trade po-
glt;on, acquiescence Of the United
States would be essential TO the adop-
tion Of a new standard OF payment, II
was pointed out.
II was stated in some quarters that
the injection of silver into the none
tary situation on fixed parity with
gold would not only bo unworkable. but
IL attempted would upset the whole
financial and economic structure OF the
world.
Fears for Foreign Trade
One international banker said that
a disastrous disorganization OF foreign
trade would inevitably follow aban-
donment of the gold standard.
while this question was sure TO
come up for consideration sooner or
later" he added, lowing to the suspen-
sion of gold redemption in Europe,
belieye it would be better to defer ac-
! tion until the war is over. There IS
| enough unsettlement now. Why add TO
! the difficulties of business by com.
plete and unnecessary readjustment OF
/ The trade structure? I do not believe
that the government will take the pro-
A Barton Hepburn. Of the Chase
National Bank, branded the suggestion
OF the substitution Of bimetalllsm LOT
the gold standard as absurd. He point,
ed out the difficulties encountered
down through the centuries in attempt
| ing 10 determine fixed ratio between
the value of gold and silver.
Might Help Great Britain
While some bankers we're inclined 70
believe that the scheme was backe1 oy
the British government, when, oy rea'
son of a great adverse trade balance
might find the substitution of the pi
metallic basis for settling internationaI
transactions advantageous, mosI OF
those who we're willing to express al
oninion on the subject said that the
proposal came probably from the west
ern silver mining interests, which Voulo
stand TO profit greatly from its. tdop'
tion. II was asserted by one banhei
that the proposals would no doubt p'
respectfully and politely received II
Washington. owing to the desire OIL ,h'
authorities there not to antagonlzc 'h'
silver Democrats of the west.
MAdoo Favors Gold
7. vas stated. however, that Seirc'
tarv of the Treasury McAdoo IS KhV"
70 he committed to different policy
and that he is opposed to any cnahg'
from the present gold STANDARD. =.
Moreover, it was said that not onli
is Mr.. McAdoo opposed to the idea .,
a bimetalic standard. but "haI
more, he is understood to have recent.y
proposed that the last vestlge OF nv
reserve be eliminated from the .;.,,
can currency system by the s1ps'tILe -,
ton of gold or other reserve Lot 49, s
| DreSent silver uolidlS "S'
Silver certificates in circu alton
Most bankers admitted that large
amounts of subsidiary silver would un'
onestionably be put into circulation II
ali the Allied countries, but they poIh1
al ont that this was a far dlnereh,
matter from making silver act AS par
of the national reserves
Gold Production at Peak
Professor r. u. Raymond, of tho
school of Mines, Columbia University
.aid that from the mining viewpoint,
himetallic currency seems the only
solution for gold scarcity. ,,,,
az there be shortage OF gold, ne
ssid at is a permanent one. The worio
cannot turn out more gold than II Is
rroducing now. It's mines are working
AZ topnotch. South Africa and Amer.
ica never mined more gold than al
present Mexico is producing near hei
maximum.
now running full blast win last only
few wears. Alaska already has been
pretty we'll picked over. While II rs
POSSIBLE that new fields may be found
there vet, I'D to this time there are no
new spots anywhere TO take the place
of those producing now.
at is probable that gold production
will be diminished rather than IN
creased. Siberia will mine more as II
is opened, but that will be some time