, 1876-11-11
Silver In India.

go!d has risen on the same standard
of comparison. The silver cOmmls-
sion which is now sitting IN New
York is expected TO contribute materI-
a!lg TO the eiucidation of this question:
but the time allotted to 1t Is SO short,
and the range OF inquiry so wide, that
its conclusions will not have the weight
that might, under other circumstances
be attached 10 them. In India the
silver question is more important and
troublesome than with us: inaSmuch
as silver performs the part which
gold and paper performs with US.
Some months ago the Bengal chamber
of commerce memorialized the Indian
government to suspend the law which
obliges the mint TO coin silver tender
ed by private persons. The chamber
hoped 10y restricting the coinage 10
prevent increase of supply, and thus
put stop 20 the depreciation OF their
silver money, although the bullion of
which their money was made might
continue TO fall. The chamber held
that silver had DEPRECATED, not that
gold had risen, and proposes: 10 arrest,
a. far a. possible, any further decline
The government declined to accede
to the request Of the chamber, and
gave It's reasons 10 a series of resolu
tions. One of the resolutions declares
that the proposed stoppage Of coinage
would "Irfllct greater erlIs than the
present, by giving an artificial value
10 the rupees" The government then
proceeds TO express the opinion that
the value of silver as determined BY
the price OF commodities had not fall
en-; that its apparent depreciation was
caused by rise in the value of gold.
1t attributed the change that has
taken place in the value relations of
the two metals 10 the decentralization
OF silver by different nations OF Europe.
There seems, then, to be differ
ence of opinion between a commercial
body and the government whether
the change that has taken place in the
relation OF silver TO gold was the ef-
feet of rise in gold or fall III silver.
The fact that the change was caused
by the demnnetization OF silver in
certain countries has i'll reality moth
ing 10 do with the determination OF
the question. The adoption Of an ex
elusive gold standard by leading com-
mercial nations of Europe might
naturally cause that me al to rise in
view OF Its greater prospective Use
with the same limited source of sup
pig ; but the throwing out of silver by
! the same commercial nations, contrac
ting by 80 much lis circle Of nsetul
ness, would naturally cause silver tc
| fall.
This question, it seems to us, must
be determined by comparison Of the
annual production of sIlve: with the
annual ProduIion of other of the
worlds great staples. If the produc
, ton of silver does not increase any
/ faster than the demand for il created
by the needs Of commerce, its present
depreciation will probably be temper
ary. The foreign commerce o. In,
principal nations Of Earope and Amer
ica has increased four fold within the
last quarter of a century, and wi;
/ probably continue TO increase until
some great calamity shall reduce one
continent or the other to a condition o
comparative waste and poverty.
Geld and silver, though still The
basis of values, are less used thai
fOrmely in actual transactions, or hi
supply OF these metals would not NEE
the demand but still, so long as the,
remain ;he basis of ya!u 4, :he amount
required must maintain some proper
ton TO the amount of business tran
sac, Ell. The Bengal chamber of com
merce seems not To recognize this prin
ciple when it recommends the Substi
tuition Of a gold standard for a silver
standard. There is nothing like gold
enough III the world to meet the re
quITements Of India with gold or The
common money Of the country. The
vast population of India has been &
sink for silver, and would, under The
proposed change, become SO for gold,
to the great disturbance of price il
European and American countries.
Fortunately the Government did not
take this request into serious consider
alton. Wi,h the Uui;ed States anG
France on the point of resuming specie
almenls, there will soon be de,
mlnd in The West for all the surplu.
silver in the East or elsewhere.
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