The Press.
London, England, 1855-12-15 00:00:00

THE INDIAN CURRENCY.

IT is now about a couple of years since Mr.
DISRAELI threw out a suggestion in the House
of Commons as to the desirability of the
Directors issuing a gold coinage in India.
Since then, however, nothing has been done,
and silver is the only currency and the only
legal tender there. It was at all times a dis-
advantage to India that her monetary standard
was different from that of Great Britain, on
which ;she is dependent, and with which lies
so large a proportion of her trade. Still,
before the discovery of the gold-fields the
difference was of less importance, as the
relative values of the two metals were pretty
steadily maintained. Now, however, that so
many millions are annually added to the stock
of gold, while that of silver increases only in
its old proportion, or even a less, the evil is
deeply and widely felt. Nor is it confined to
India alone ; everywhere the effect is to raise
greatly the proportionate value of silver, to
make it less easily attainable by individuals,
and in the aggregate more scarce.
In former days gold generally bore a con-
siderable premium in India, as it did in France
and most other countries where silver was the
standard fixed by law ; and this, together with
its portability and the little space it occupies,
made it the favorite means with natives of
investing their accumulated hoards. It would
be difficult to estimate the amount thus lying
buried in the secret recesses of native palaces
and houses when the discovery of the gold-
fields first took place. The depreciation
of the metal which this discovery caused
naturally deprived gold of the qualities
essential for such purposes. People no
longer desire to hoard a substance which
is daily falling in comparative value; and for
gold is now being substituted silver. The
gold thus set free forms a considerable addition
to the amount which Australia and California
have thrown upon the world. While, there-
fore, gold is still more and more depreciated
by the process, the comparative value of
silver, on the contrary, is proportionately
raised; it bears even a higher premium than
its position as the monetary standard of
would give ; and as it is more and more with-
drawn from circulation, the Mint is k4,pt
perpetually in operation to supply the void.
The quantity thus absorbed, added to that
indispensably retained in circulation to supply
the necessary medium of exchange, is creating
a demand for silver upon 'Europe which it is
daily becoming more difficult to supply. Large
shipments of silver are being made constantly

DECEMBER 15, 1855.

to the East, and both England and France
are beginning to feel the drain. That the
mere keeping up the circulation in India to
the amount absolutely required is no trifling
matter may be inferred from this fact, that the
annual public revenue alone, including that of
native States, is about four hundred mil-
lions of rupees, all of which, or nearly all,
has to be paid in silver coin. If in England,
with all our aids in the shape of banks and
paper-money, the temporary abstraction of a
few millions from the circulation causes the
proportionate value of the rest so greatly to
rise, what must be the case in a country like
India, where, except at tho Presidencies, the
operation of banks and paper-money may be
almost said to be unknown? A great addition
to the difficulty has arisen from the introduc-
tion of the new system of levying the land
revenue, which has now universally to be paid
iu cash, whereas formerly it was very generally
taken in kind. Every increase of commerce also
brings with it an increased demand for silver,
in which all payments for native produce have
to be made. Commerce, however, has the
compensating effect of drawing a considerable
quantity of silver from China, without which
the Indian silver currency could not be for a
day maintained.
To obtain silver, then, at the periods for
paying the revenue and for exporting produce,
has now become a serious difficulty even with
the most solvent men. As the time comes
round, the relative value of silver rises in pro-
portion to the inadequacy of the circulation to
supply the demands on it that are then made;
the produce of the fields is sold at a ruinous
sacrifice, in order to realise the rents ; and
from ten to fourteen per cent. is the rate paid
as interest by merchants at the Presidencies
for accommodation on the most approved
bills. The exchange on England rises to a
height that must, one would think, exclude the
drawer from all hopes of profit , every one is
in want of cash to complete his purchases and
engagements ; and new elements of loss and
confusion come in still further to depress the
agriculture and commerce of a country which
require for their development the nicest man-
agement and the most fostering care. It may
be almost doubted whether an annual irrup
tion of plundering Mahrattas would inflict more
losses on the whole than those created by
this annual sacrifice of produce throughout the
land to obtain cash to meet the revenue de-
mands.
To an affair of such importance, and which
in the nature of things must daily increase in
magnitude as the premium on silver rises, the
serious attention of the Legislature must ere
long be turned. Monetary derangements in
India, the effects of which are felt in England
and on the Continent as well, are matters
which cannot go on for any considerable period
without adjustment. The precise remedy for
the evil it might be difficult at first sight to
determine, though of its vastness there can be
no doubt : a Parliamentary Committee would
perhaps be the best mode of arriving at a
solution of the difficulty, when the time for
the solution of it shall have arrived. The re-
verting to the system of taking revenue in
kind, is one that would to a certain extent
meet it, but that is a course which probably
no one would recommend. The issuing a
paper currency under the authority of Govern-
ment equal to the amount of the annual public
income of India, and which should be receiv-
able as revenue and convertable on demand,
would be another mode of lessening the great
run for silver, whenever the time for paying
the revenue comes round. A third plan would
be to have a mixed currency—equally legal
tenders of gold and silver; but we are inclined
to think that the simplest remedy of all, and
the best, would be to assimilate the monetary
standard to that of England, making it gold
throughout the empire.

A PREMIER WITHOUT A PARTY.
" If the nose of CLEOPATRA had been an inch
" shorter," said PASCAL, " the fate of the world
" might have been changed;" and if Lord
JOHN RUSSELL had been a little less wilful,
England would not now have been exposed to
the hazard of committing her Government to