Wood River times. [volume] (Hailey, Idaho) 1882-1915, 1892-04-22
INDIA'S SILVER TROUBLES.
They Are Causing the Decentralization
In the Price Of the White Metal.

in the Price Of the White Metal.
Bradstreetsl
Evidence accumulates that the fall
in the price OF silver has create d a
crisis in the finances Of British India.
The difficulties Of the government in
connection with the currency, as we'll
as the complications in general busi-
ness. are no doubt aggravated by the
drouth which prevails throughout
India. The latter circumstances, how
ever, is not an unusual one. 1t could
probably be withstood without serious
results, just as drouth and famine
have been met on numerous former
occasions. A depreciation of over rs
per cent. in the currency Of any coun.
try is about as serious q trouble as
could befall it, and, in spite of the as
sevaration that the decline of silver
has thus far benefited India and slim
ulated its export trade, It would seem
that the natural results of the existing
conditions are asserting themselves.
Sach, at any rate, is the conclusion
to be drawn from the loud complaints
Of Indian business interests in regard
to the present state OF affairs. As
already noted in these columns, the
mercantile aud banking community
there had expressed their dissatisfac>
ton even before the recent decline.
1t is therefore very natural that the
decentralization OF exchanges which
has followed the last sharp drop in
the price of silver should intensity the
force OF these appeals. Moreover. it
is observable that they are now ob.
tanning degree of attention in Eng
land itself which was not first ac-
corded. The answer to Indian COM
plants q few months ago ago was
that India must hear its currency
trouble in patience and not bother
Great Britain. At present the tone of
the discussion has changed. The
dangers and evils to which the great
eastern dependency is exposed by the
present unfortunate conjunction Of
circumstances is freely admitted,
though it is commended that a charge
of any kind in the existing system
would be dangerous alike to the GOV.
erning and the governed country.
India is country in which the
government is omnipotcnt. Natives
and Europeans alike are accustomed
to appeal to the British RAJ" on all
occasions, and it is therefore eminently
natural that in this emergency there
should be earnest appeals for some
action on its part which would give
greater stability to the rupee and
check the decentralization which fol
lows the decline and unsettled condi
ton OF exchanges. The suggestion
that the immemorial silver currency
of the currency of the country be
abandoned and gold standard es.ab-
l'shed has of course been abandoned
as utterly impracticable. Such a pro-
ceeding is manifestly impossible, apart
from the disturbance OF European
finances which would result we're it
even seriously entertained. On the
other hand, several propositions have
already emanated from Indian and |
English financial and commercial au-
OF these one of the most
popular is that the government of
British India shall close its mints to
the free coinage OF silver. This, it is
argued, would at once cause q rise
in exchange. The grave objection to
This scheme, however, is that its suc>
cess is virtually predicated on the
creation of an artificial scarcity of
circulating medium, with the in
evitable consequences Of such a state.
while on the other hand the discour.
agement of exports of silver to India
must result in forcing the value of the
metal to still lower level.
Another phase of the discussion re-
ates to the drawings of exchange b,
he British India government itself
While it is known that the great fall in
ilver has made the task of governing
he country vastly more difficult, it has
lot been fully recognized that the
'rAwlng Of bills on India by the gov
rnment itself to meet the interest
'ayable in gold in Europe on the
ountry's obligations is a controlling
actor in the ehtire silver situation.
he total sun RENTED between 1871
nd 1891 reached the enormous ag.
reeate of f2S2. 100000, and the loss
the difference Of exchange upon this
mount was no less than E66,OOO, GOO
terllng. II is now pointed out that
n tbs circumstance is found the orr
in of much of the existing trouble
nth silver. The drawings of the In.
ian council on India to be sold in the
london market during the current
ear are estimated at about elS.COO..