July 23, 1898.]
PHILIPPINES.
CHINA OVERLAND TRADE REPORT.
number of rupées
;
In this matter of the conversion
AMERICAN INTENTIONS IN THE | isolation and prepare them to take their share drawing a certain
with the Mother Country in the burden of annually. empire. That burden has been growing more onerous with each new acquisition, and these fresh acquisitions have been forced upon Great Britain by the aggres- sive policy of the other European Powers, who are continually exploiting the dark the earth. It may be urged that England and uncivilised or semi-civilised places of has enough territory already; she has enough, and to spare, and has no desire for more, but she cannot afford to see countries now open to her trade seized and closed to her goods by high tariffs, She wishes to maintain the policy of an open door to the trade of the world, but Russia, France, and some other countries only desire to make preserves for themselves. The United States are in thorough sympathy with the open door policy, and nothing would please Great Britain better than for America to
The final outcome of the Spanish-American war is already the subject of a good deal of discussion in home papers. It is recognised that Spain has lost Cuba, and if hostilities continue she will certainly lose Puerto Rico. by all except the Spaniards, as hopelessly As for the Philippines they are regarded, lost already. The Spaniards are, however, of opinion that this Asiatic possession of the Spanish Crown should be retained at all costs. As the London Telegraph points out, however:-" How are the islands to be re- " covered It is true that the Americans are not in possession, but it is at least equally true that Spanish authority does "not extend beyond the suburbs of Manila, "if its limits are not even more cir- "cumscribed. The re-establishment of her "rule vould-even if America waived her
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claims-cost Spain as much as she has already wasted on Cuba. Peace can be 'obtained, with or without external inter- vention, but it will be peace on terms which are not likely to be modified by a "prolongation of the war." The Spanish Authorities in Manila are now, if all reports be correct, endeavouring to come to terms with the rebels and induce them to make common cause against the invaders. But the Filippinos have had a lengthened ex- perience of Spanish bad faith, and will be chary of coming to any agreement with their ancient oppressors. It is true the natives may cherish dreams of and aspirations for independence which the Americans will be unable at once to gratify. But it cannot be doubted for a moment that they would prefer to take the chance of a share in self- government and a gradual enfranchisement under the protection of the stars and stripes rather than run the risk of the renewal of Spanish rule and of the reimposition of the priestly yoke they so bitterly dislike.
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join hands with her in maintaining it. One step in that direction would certainly be the annexation of the Philippines.
1HE INDIAN CURRENCY QUESTION,
of the currency it seems to us that the policy of Japan has been infinitely superior to that of India. She made the plunge at once, replaced silver by gold at a rate
sound basis at a very moderate cost. India approximating to the market rate of the day, and got her currency placed on might have adopted the same course at the time the mints were closed, but it would involve her in heavy and almost impossible expenditure to do so now, because an artificial value has been given to the rupee and there would be a loss of thirty-three more on each silver coin per cent. or
exchanged for gold. How under these circumstances the currency is to be placed but Sir THOMAS SUTHERLAND says he feels on a gold basis is a knotty problem; tolerably confident that in the ordinary and normal operation of Indian trade, when exports are greater than imports, the ten- dency towards the fixed limit of exchange is likely to be reached, even in the existing state of affairs. Mr JACKSON is of opinion that pending some international agreement the existing state of affairs should be left' At the half yearly meeting of the P. & O.
untouched. We do not think there is Company Sir THOMAS SUTHERLAND made the some remarks on the Indian currency ques-national agreement for the rehabilitation of
remotest possibility of an inter- tion which may be conveniently read in con- nection with the pronouncements on the
silver being arrived at, and the Indian same question by Mr. T. JACKSON and existing state of affairs does not meet the Government is of opinion that the the Hon. T. H. WHITEHEAD, published requirements and that a contraction of the with the minutes of the last meet- ing of the Committee of the Hongkong fixity of exchange at 1s. 4d., the rate currency is necessary in order to secure General Chamber of Commerce. Sir THOMAS SUTHERLAND does not commit
This proposed contraction of the himself to auy opinion on the proposal of
currency Mr. WHITEHEAD SAys would "further widen the divergence between the the Indian Government to withdraw from
"nominal and metallic value of the rupee circulation a certain number of current silver
"and thereby most seriously handicap rupees annually, but he says that while he
“Indian trade and industries with and recognises the great difficulty of introduc-
din ing a gold standard into India he sees that Sir THOMAS SUTHERLAND, on the other competition with silver using countries." there is even a still greater difficulty in go-hand, while admitting that a one-and-four- ing back upon the policy which has been in existence for the last four or five years. Mr. Penny rupee must tend to increase the JACKSON says be does not approve of the competition between India and China in those productions which may be more or proposal of the Indian Government, that
less common to both, he considers it impracticable, and that
says that this pending some international
causes him no alarm whatever inre agreement he would suggest continuing the policy established in 1893. Mr. WHITEHEAD presents rather an elaborate memorandum on the subject, but we find some difficulty in following his arguments. The hon. gentleman says that the closing of the Indian mints was a colossal blunder which is developing grave evils, and yet in the next paragraph he says "Adopt convertibi- lity of the rupee in some form or other at "a fixed maximum and minimum rate.
aimed at.
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gard to the future of Indian trade. "It appears to me," he says, "that India possesses enormous advantages over China in this respect. Her proximity to the great markets of Europe, her necessarily low range of freights, her magnificent railway system, and her immunity from "all internal taxation, which is so oppres sive in the case of China, establish, at all "events in my mind, the conviction that
an exchange rate of 1s. 4d, or thereabouts "will never interfere with the large export "trade from our great dependency of "India." On this point it should also be noted that the value
silver
The intentions of the Washington Gov- ernment are not clearly known in this matter. They have not yet caught their hare, but when they have secured it we are of opinion they will not hastily or without much calm deliberation again abandon it. The British Government once gave up Manila without receiving the stipulated indemnity, but the Ministers of President MCKINLEY would not be prepared, we think, to emulate such an example. Nor, on the other hand, if the American Govern- ment were willing to surrender the Philip pines to General AGUINALDO, could they feel confidence that his assumption of power would not lead to renewed disturbances, Nor could the Filippinos hold their coun- try against a strong invader; and there may be Powers who would be only too glad to pick a quarrel with a native Gov- ernment at Manila in order to secure a pretext for making a descent upon and annexing these rich islands, The United States having once abandoned the article in their constitution precluding the country from acquiring foreign posses- sions, and having formally annexed the Hawaiian Islands, may just as well relax a little further and gain a dependency in Asia. The Washington Government are sideratum, we fail to see how the closing the treaty ports, and that tendency assured in advance of the complacency of Great Britain, and they need not trouble greatly about the views of other Powers, who have for years past been embarked on a game of grab in all corners of the world. So far from feeling jealousy at our kinsmen being seated in the Philippines, we should rather be glad to see them acquiring a stake in the Far East which would lead to their eventual abandonment of the old policy of
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Exchangeability can alone give fixity of exchange, and the making of rupees interchangeable with gold at an approximate rate would remove all feeling of insecurity and would inspire confidence "in the city of London and elsewhere." But it would have been impossible to have estab. lished interchangeability of rupees and gold at a fixed rate while the mints remained open to silver, and if such interchange- ability be, as Mr. WHITEHEAD says, a de-
of the mints can be described as a colossal blunder. The closing of the mints was an es- sential step preliminary to the establishment of fixity of exchange. It has been effective to the extent of arresting the decline in the value of the rupee, but it has not caused an appreciation up to the point at which gold would automatically be introduced. The Indian Government therefore proposes to further restrict the currency by with-
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is declining in silver using countries. Hongkong recognised this some years ago Civil Service. China has now recognised it by granting exchange compensation to the
Cus- by increasing the rates of pay in the toms Service, and everyone knows that the wages of "the labouring classes have u marked upward tendency in Hongkong and gradually make itself felt in the remote, in terior. Whatever advantages cheap silver may confer upon China's industries and export trade must therefore be merely tem- porary, lasting only until equilibrium has advantages to India of a fixed rate of ex- been restored. On the other hand the change are so great as to be well worth some temporary sacrifice.