New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-09-28

credit and of substitutes for coin as money,
especially in the larger retail dealings, and to
the use of gold rs the only measure in whole
sale operations 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 densey populated East silver must
necessarily depreciate relatively to gold moth
ing but the Eastern demand has hitherto pre-
vented far greater fall in prices than the
world has witnessed, and the variations In The
movement to the East have in measure ac-
counted for the moro violent fluctuations In
silver bullion. But if India should from any
cause cease to demand more silver, through
poverty and inability to take more, or through
q change Of preference to other forms OF money,
the effect upon the Western world would be
very great unless cQuntcractcd by some con-
certed and powerful effort to restore silver to
larger use by Western populations.
One of the most suggestive of recent contrl-
buttons to the discussion, the cforc. IS T. s. en-
of Samuel Smith, whose long and thorough ac-
ouaintancc with the conditions of trade and
industry in India, and with the feelings and
wants Of the inhabitants, renders his infoma-
ton peculiarly valuable. This speech is re-
printed in full by The Financial Chronicle OF
last Saturday. and though delivered some time
ago contains much that is new to American
readers. He treats first OF the extraordinary
poverty of India and the cost OF British admin
istration there. Only 100000 persons In all
India, one in 700. reach an income OF you
yearly, and the average income OF the lnhaol-
tants is believed to be not more than IL los,
or 81 so yearly But British government costs
S37s. 600. 600, and has been increasing In cost
with astonishing rapidity, for ten years ago IL
was only $2s5,OO0,O0O, having thus risen
81 Der cent in decade. Yet the taxes borne
nv the inhabitants are far greater, and have IN
creased far more rapidly, for the bad methods
OF taxation result in frightful peculatlon ana
Matchmaking, so that it is believed not 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 thac
there is more danger of famine than there used
to be; not strange if, as is stated on good
authority, there arc not less than 5O,OOo,OOo
of people in India who average only one meal
day of the poorest food. Mr.. Smith thinks
the statement made to HIM. that so per cent OF
the people arc in debt must be exaggerated.
but he saws. No one can doubt that the great
maiorily are deeply, hCltlcssly In debt TO inc
m )reylcnders'
Gu, of this extreme poverty India has to pay
rcarlv a vast sum TO England. The surplus OF
| exports over imports is now from SlOO,OOO,
900 to 1925 100000 yearly, and MIR. omith cal
culates that, with proper allowance tor iIcghu
charges and profits, the real balance Is no"
about S15O,OOO,OOO, of which about half rep-
rescnts home charges, and the rest brush
nrofts on trade with India. The British pohcy
of free trade has been purposely and efecuveH
employcd to crush out great Industries In tha'
country, and at the same time the substitution
| Of direct for indirect taxation has opened inc
way to enormously increased pcculatlon ana
plumber Mr. Smith says:
The cotton duties in india abolished against inc
Judgment India speak as one largely ihefes'e" IL wv
trade Lancashire. and my interests lie ID mo uoo "
the abolition duties but as matter ~
comneed TO admit the policy adopted indefensble
do imagine that the peopeo this country reaze WIZ"
the decay native industries means or have any cohcpo
~ the misery brought upon people the destruction OF
their handlcras 1t really involves loss OF hVeoo" "
mony mill ons of the people been driven Oh 10 e
land already overcropped believe the figures could DC
ascertained would be found that handcrts oy WHICH
10 900 600 or 10 people gained their living have been
This is the testimony Of zone largely inter
csted in the trade of Lancashire and it does
not roflect credit on the favorite British policy
But Mr.. Smith also shows that the Government
has forced drink shops upon the people against
their will and in spite Of the condemnation oil
their religion, in order to get revenue from
them. He shows that the entire administration
is too costly for the natives, and that discomfort
RAPIDLY increases, and he warns Parliament
that there is but one remedy, to reconstruct the
Government in closer harmony with the wishes
and feelings Of the people.
This warning chiefly concerns Great Britain
But the consequences of the growing poverty
OF India under British misrulc concerns tho
whole world If India is growing less able Il
bear rapidly increasing burdens, less able &c
pay pidly swelling laa1c S yea ly to / n land
it must inevitably come TO pass that the country
will be less able to take silver from the Western
world The increase in expenses of govern
ment. and in balances due TO England, has per.
fcctlv conceded in time with the fall i'll Tho
price of silver, and greater eXacuons VIII
greater poverty must he expected to cause
greater fall. Add TO this the fact that, 10y
breaking down manufactures in India by
which millions Of people formerly gained thcl
livelihood. Great Britain makes market 10
more British cottons, and the cotton sent les
sens the amount Of silver that India can atlor'
TO pay, ard it will lie seen that the fail IN thu
price of silver is directly connected with Tit
vicious policy of the British Government,
; pelcy which British theorists here are labornI
to establish in this country also for britisl
advantage.
HIGGINS Trying TO hedge.