'Cbc Conservative ,
flourish without fair giving and talcing
on both sides any more than trade be
tween individuals. Indeed national
trade is nothing but the aggregate of
many trades. With what face can we
proclaim the "open door" Abroad , while
holding hard the shut door at home ?
Will it not be justly regarded by other
nations as cool effrontery and porcine
behavior ? Will not such a policy of
short sighted selfishness lead inevitably
to tariff retaliation and trade wars ?
Canada already answers. She elected a
liberal ministry , pledged to lower duties
and reciprocity with this country. Her
friendly overtures in this direction were
repelled by the McKinley administration
in such manner that her ministers
abruptly left Washington. During the
last three years in self defense she has
enacted discriminating rates in favor of
British trade and against American ag
gregating over thirty per cent of her
duties. Another increase will deprive
our manufacturers of their best
customer on this continent. France dis
criminates against us in her tariff. And
ominous complaints are coming from
Germany and Russia at recent protec
tion rulings by our customs which give
warnings it were well to heed. We may
find when too late that preaching "re
ciprocity" on the stump and killing it in
the senate is fraught with danger as
well as deceit. But tin's matter of re
taliatory tariffs is too large a subject and
too important , the danger is too real and
imminent , to be treated in a paragraph.
The time has come when America
must reverse her tariff policy. "Pro
tection" has sat on the safety valve long
enough. HAZARD STEVENS.
Boston , Mass.
SILVER PARITY BILLS.
The hearing before the committee on
Coinage , Weights and Measures of the
House of Representatives which has
charge of bills relating to maintaining
the parity of the silver dollar , supplied
another opportunity for the airing of
fiat silver theories.
They were along the usual lines and
carried the familiar tones with which
the country was surfeited in 1896. This
was to have been expected and nothing
that was said on that side of the ques
tion is worth answering or criticising at
this late date.
But a portion of the testimony sup
plied for the sound money side of the
question was also misleading.
Incorrect statements by men put for
ward as experts , even upon inconsequen
tial side issues , are liable to be made o :
service to the opposing side and are sure
to be used for all they are worth.
It is to be feared that in their zeal for
the interests of the pending bills , some
answers to questions were given hastily
and were not weighed with the con
sideration the importance of the subjeo
iemanded. In no other manner can
hese answers be explained.
The hearings are published in a pam
phlet issued from the Government Print-
ng Office and particular reference is hade
o the testimony of Mr. Horace White ,
from which the following quotations are
iakon in the order it was given :
Discredited Money.
"Mr. Gaiues ( page 22) ) : Why is it
that all over the country the banks pay
you silver dollars and silver certificates
nstead of gold in cashing checks ?
"Mr. White I is
: suppose gold con
sidered a little safer , especially in the
existing state of the law when the Secre
tary of the Treasury has no means of
redeeming the silver dollars in gold.
"Mr. Gaines : In other words they
give the discredited money to the people
and keep the good money themselves ?
"Mr. White : Yes , sir. "
Mr. White's statement is far from
being correct and the answer only sup
plies an occasion for adding to the pre
judice which in some quarters exists
against banks a prejudice which is
always fostered by the fiat money people.
If the condition of the money was as in
dicated by Mr. White , the banks would
be justified in doing what he says , be
cause self-interest as a rule governs all
business transactions.
But the silver dollars and silver cer
tificates are not discredited money. I
do not think it possible for Mr. White or
anyone else to show where they are paid
out anywhere in preference to other
currency.
On the contrary , in some sections of
the country , the banks prefer to hold
the paper certificates to the gold com and
encounter much difficulty when they
undertake to pay out gold com.
Gold and Silver Disparity.
"Mr. Gaines ( page 24) ) : But what
will produce disparity between our gold
dollar and silver dollar ?
"Mr. Wliite : A failure of crops or
serious business depression would do it
in my judgment. "
Failure of crops and business depres
sion have frequently occurred without
affecting in the slightest manner the re
lation existing between our gold and
silver money , and no good reason exists
for their so affecting it of themselves
for in times of distress any kind of
money will go.
An adverse foreign trade balance
which would cause a special demand for
gold might produce this disparity , but
this would be the case whether it was
coincident or not with crop failures
and business depression.
There is at present no difference ii
the quality of our money. Silver money
is accepted everywhere the same as golc
and the probability of a large trade bal
ance against us is very remote.
The only thing which could change
he existing condition of our money cir
culation and disturb the parity of "the
different lands would be the success of
; he fiat silver party , and it is to guard
against this possible contingency that
the legislation now pending is urged by
the business men of the country.
Bank of England Practice.
"Mr. Cochran ( page 80) ) : I say it is
the policy of the British government ,
when gold exports are threatened , to so
manipulate the money and exchange
market , through the operations of the-
bank of England , as to in effect put a
iremium on gold.
"Mr. White : That is one way to put
it. I think the case is just this : The
Bank of England feels the necessity of
mving more gold and finds that the pub
ic will absorb some more notes and for
the purpose of getting that gold it will
pay in its own notes a little more than
the law requires it to pay , because the
notes will stay out. This is the prem
ium. "
Mr. Wliite had already stated that the
British government had nothing to do
with the business transactions of the
Bank of England.
The action taken by the bank to check
gold exports , as I undestand it , has
nothing whatever to do with its note
issues. The bank cannot increase its
note issues except against deposits of
gold coin and bullion of a like amount in
the issue department which is a separate
and distinct arrangement from the bank
proper. Manifestly the bank could not
obtain relief by issuing its notes at a dis
count.
In this country when the bonk re
serves run down , the only thing the
banks can do to restore them is to call in
loans. A great institution like the Bank
of England is not required to adopt this
course. It accomplishes the purpose
desired by simply raising its discount
rate. When this occurs , the merchants
who need loans instead of getting them
from the bank will go elsewhere to
Paris , Berlin , New York , or some other
money market where the interest rate is
lower , and will sell the exchange to ob
tain the money required. The export
movement will be checked to the extent
of these transactions. The discount
upon the exchange may be called a
premium for gold with the same pro
priety that a discount upon New York
exchange in the Chicago market may be
called a premium for United States cur
rency.
The practice of the Bank of France
under similar circumstances seems to be
greatly admired by the silverites and
doubtless a similar rule would prevail
in the United States if the silver men
could have their way.
In its case when gold is required for
export , the "hold up" privilege of pay
ing demands in silver is exercised , or
