The Ketchum keystone. [volume] (Ketchum, Idaho) 1885-1899, 1886-10-16
THE SILVER PROBLEM.
Facts Throwing Light ON the
Interesting Problem.
New York Tribune.


yer problem. Western civilization
tends to increased use of credit and
Of substitutes for coin as money,
especially in the larger retail deal
ings. and to the use of gold as the
only measure in wholesale opera
tions of commerce. Gold also has
an increasing consumption in the
arts, while nickel has supplied an
acceptable substitute for silver in
many ways. Hence, but for the
demand from the densely populated
East, silver must necessarily de-
preciate relatively to gold nothing
but the Eastern demand has hith-
erto prevented a far greater fall in
prices that the world has witnessed,
and the variations in the movement
to the East have, in a measure, ac-
counted for the more violent fluctu
ations in silver bullion. But if In
dia should from any cause cease
to demand more silver, through
poverty and inability to take more,
or through change of preference
to other forms of money, the effect
upon the Western world would be
very great, unless counteracted by
some concerted and powerful eff
fort to restore silver to larger use
by Western populations.
One of the most suggestive of re-
cent contributions to tie discus
) sion, therefore, is the speech of
Samuel Smith, whose long and
thorough acquaintance with the
conditions of trade and industry in
India, and with the feelings and
wants of the inhabitants, renders
his information peculiarly valua-
BILE. This speech is reprinted in
full by the Financial Chronicle,
and though delivered some time
ago, contains much that is new to
, American readers. He treats first
of the extraordinary poverty of In
dia and the cost of British admin
istration there. Only 100000 per-
sons in all India-one in 700
reach an income of $3.50 yearly,
and the average income of the in
habitants is believed to be not more
than 81 los, or 81 so yearly. But
British government costs 1878, ,0OO,- :
600, and has been increasing in cost
with astonishing rapidity, for ten
years ago it was only 1896, 100000,
having thus risen 81 per cent. in a
decade. Yet the taxes borne by
the inhabitants are far greater, and
have increased far more rapidly, for
the bad methods Of taxation result
in frightful peculation and black
+, mailing, so that it is believed not
l more than half the amount taken
, from the people goes to the support
of the government. 1t is not strange
/; that the natives believe the country
is growing poorer, instead of richer,
and that there is more danger of
famine than there used to be; not
strang if, as is stated on good au-
thority, that there are no less than
: 5O,OOO,O0O people in India who av-
erage only one meal day of the
poorest food. Mr.. Smith thinks
the statement made to him that 80
per cent. of the people are in debt
: must be exaggerated; but he says
"No one can doubt that the great
4, majority are deeply, hopelessly in
debt to the money-lenders."
. Out of this extreme poverty In
dia has to pay yearly vast sum to
England. The surplus of exports
over imports is now from 100000
', 600 to 125,OOO,OO0 yearly, and Mr..
Smith calculates that, with proper
allowance for freight charges and
profits, the real balance is now
|, about $15O,OOO,OOO, about half of
which represents home charges and
the rest British profits on trade
with India. The British policy of
free trade has been purposely and
; effectively employed to crush out
great industries in that country,
and at the same time the substitu-
ton of direct for indirect taxation
has opened the way to enormously
I increased peculation and plunder.
Z Mr.. Smith says:
"The cotton duties in India were
abolished against the judgment OF
India. speak as one largely in
terested in the trade of Lancashire,
and my interests lie in the direc-
ton of the abolition of these du-
ties; but, as matter of justice, !
3 am compelled to admit the policy
, was indefensible. do
: not imagine that the people of this
r country realize what the decay OF
o native industries means or have
y any conception Of the misery
: brought upon the people by the
destruction of their handicrafts. 1t
really involves a loss of a liveli-
> hood to many millions of the peo-
pie, who have been driven on to the
{. land already overcropped. l be-
y lieve, if the figures could be ascer-
tanned, it would be found that
! handicrafts by which 100000 OF
/ $1,000, 600 people gained their living
D have been destroyed by the substi-
!, tuition of foreign for home manu-.