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Stability of International Exchange

Stability of International Exchange

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Excerpt from Stability of International Exchange: Report on the Introduction of the Gold-Exchange Standard Into China and Other Silver-Using Countries, Submitted to the Secretary of State October 1, 1903

The President:

I have the honor to submit herewith the report of the Commission on International Exchange, constituted under authority of the act of March 3, 1903, in compliance with the request of the Governments of Mexico and China for the cooperation of the United States in an effort to bring about a fixed relationship between the moneys of the gold-standard countries and the present silver-using countries.

During the past summer this Commission, accompanied by a commission from the Republic of Mexico, visited the capitals of Great Britain, France, the Netherlands, Germany, and Russia, and there conferred with commissions appointed by the respective Governments of those countries.

The subjects discussed were the benefits of establishing a gold-exchange standard in China, the adoption of a common ratio between the gold unit and the silver coins of the countries and dependencies which are considering changes in their monetary systems, and the diminution, so far as it might be practicable by legitimate economic measures, of the recent fluctuations in the gold price of silver. While eventually the extension of the gold-exchange standard will be sought in other countries, general approval of the policy of its adoption in China and the oriental dependencies of European countries was the immediate object of the Commission of the United States, and in this object they report that they have boon entirely successful.

It remains to carry this policy to completion by presenting the conclusions of the foreign commissions to the Chinese Imperial Government, and for this purpose one of the members of the American Commission, Prof. Jeremiah W. Jenks, has gone to China with instructions from you. For the purpose of defraying the expenses of his mission and other expenditures incidental to the work of the Commission an appropriation of $100,000 is hereby respectfully requested from Congress.

Measures to put an end to the fluctuations of exchange in China appear to be desired equally by the people and Government of China and by the foreign merchants doing business there.

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