, 1876-07-20
COMMERCIAL DEPRESSION IN INDIA


Tho Intelligence from England is t6 tho
effect that there prevails in India serious
Gdancial and commercial distress which is Of
@ somewhat peculiar character. Silver han
always bcon tho standard measure OF values
in India, and the present distress III duo to
the serious decline In tho valuo Of silver.
India is tho best customer Of Great britain.
Tho trade Of tho country il represented by
annual imports in 1871 of ca, 900, 600, and
exports, I5G, 1914, 600. Her debt, which is
cl08, 900, 900, Is mainly hold III England.
Tho transactions of Inaia with all European
nations aro necessarily upon gold standard.
Tho decline In the value Of silver Inns reached
that extent that exchange on London Ii now
u por cont, TINT being tho measure Of dif-
ference between tho Rilver currency Of India
and tho gold standard of London. Tho cur
renoy Of 1ndia, being togal-tondor md do
prociatel, has caused a nominal advanco Ia
tho price Of commodities; debts aro payable
in tho aepreciatcl 1cgal-tender, ~ well ns
payments to tho Government, while ali re-
,nittanccs to London hive to be on tho gold
Lasis. In short, lndia il now in the same
condition with respect to her currency and
foreign trado TINT tho United States have
boon for years. She has alegal-tonder which
ia not only deprecated hut Auctuating,-
wanting tho essential quality Of f4ity In
yatue. Practically, there is 81 per cent, with
largo margin for fluctuations, addcil to tho
cost of living In Indin, as measured by the
silyer standard. Tho Government taxes,
payable in ailver, aro no longer adequate,
and will havo to bo advanced to meet tho
deficiency In tho purchasing power Of tho
money that is collected. There ID, there
fore,' Governmental DISTRESS, commercial
wrack, and individual calamity; md, as the
country has largo dealings with Great
Britain, tho effects will DO seriously felt In
tho manufacturing districts Of England.
This wayo, which has disturbed tho finan-
cial centres and produced 80 much disaster,
has taken q wide range. Five yeara ago
thoro was wild rage for speculation In the
Austrian Empire. There was grand syH-
tom Of informal improvements projected.
For this purpose tAcro woro oil manner OF
companies organized, such as construction
companies, credit mobiliers, credit fon-
ciers, ind othora by various names.
4AEAH EtuAI3Au1G6 NG%0 HEtA1G GQHEEEU8S
they offered extraordinary profits to stock
holders, and loanal credits to all manner OF
companies to build cities, operate farms, car
ry on manufacturers build railways, aud gen.
orally do anything and everything for which
money Ia needed. As part Of this camo the
issue Of paper money; imitation, high prices,
Increased wages; enormous profits for
while; then collapse and breakdown,
lowing nothing but tho appreciated pnpcr
money to curse the country aud cubarrass
trado aud production ever since. AuBtria
haa mover recovered, tho whole Empire be.
| lug ever Binco under financial cloud.
The German disaster WIS from d sudden
plethora Of money obtained from France.
| The Fronch indemnity was paid moatly in
silver, Tho Treasury was burdonol with 1t,
The Government mado largo expenditures
for naval purposes, also for tho construction
OF military railwaya. largo class Of manu.
tactorioH woro called for, which, when conn.,
plotod, woro Of no productive yaluo to tho
country. Money was rlonty, wages in.
croascd largely; tho cost Of living also
increased. Tho Gorman manufacturers,
who had not ou1y supplied the
home market. but had largo1y exported,
could no longer produce at psices admitting
competition with tho imported goods. Tho
result .was, German production fell OF !;
wages were reduced; strikes followed. In
tho meantime tho plethora Of money had q
disastrous offoot upon social habits. Ex.
t1ayagancs took tho place Of thrift, man
ceased to labor that they might speculate,
the money that had como into tho country
in such large amount and 80 suddenly begun
to aow out. It was silver which was now
e1poftab1s. and gold had to DO bought to
pay France and England TOR the goods aud
waras which Germany no longer produced,
but imported. Tho discount on silver was
heasy, and in q comparatively b1iet space Of
/! time Germany Ind pail out in gold, in e1.