People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1893-07-14
WHY INDIA DID 1T.
The Causes Which Led to India's Rec,
Action RriefIv Statad


The Causes Which Led to India's Recent
Action Briefly Stated.
Doubtless there are many who are at
a loss to imagine what caused India to
close her minis to the free coinage of
silver and adopt the gold standard. In
dla's progress has been marvellous and
her prosperity abundant since the de-
monetization of silver by Germany, the
United States and other nations, and
her recent action seems pulling, to
say the least. The causes for such ac-
ton were many and complex, but two
or three of the principal ones may be
briefly stated.
First. Although India, for the past
twelve years, has had balance of trade
in her favor, averaging more than
$50, 100000 year, she owed England
interest and other fixed charges amount
ing to $4,000, 900 year, and payable in
gold. The balance of trade belonged
to individuals, but the payments to
England must be made by the Indian
government and raised by taxation, in
silver. The steady and rapid fall in
the price of silver caused an equally
steady and continuous raise in the rate
OF taxation and deficit in the national
revenue at the end OF each fiscal year
TN this connection it may be well to
state that the silver heretofore import
ed by India's merchants in settlement
Of trade balances due them could be
coined by them into rupees worth 47.37
cents each. Now, however, with free
coinage stopped, the more silver they
import the worse it will be for silvers
interests, as it will simply increase the
amount of silver to be offered the In
dian government at market price.
Hereafter Indian merchants will de-
mand gold
Second. As is the case in the United
States, the salaries of the swarms of
government officials and employees are
fixed for term of years by law, and in
India are fixed in silver terms, in
rupees at 47.S7 cents rupee. In the
United States, the steady appreciation
Of gold has steadily increased the pur-
chasing power of all fixed salaries. In
India, the steady depreciation in the
price Of silver bullion has just as stead
lily decreased the purchasing power of
all fixed salaries over imported
goods: so that while the rupee
in 1898 would buy just as
much as ever of commodities pro-
duced in India, such rupee would buy
only two-thirds as much imported mer-
lhandize, the price of such merchant
die being increased in silver terms so
as to make them bring their gold value.
This made the Indian government and
all its employees howl for a gold
standard.
Third. Although the conditions were
as above stated, when it came to India's
exports, importing nations bought sill
yer bullion at its gold price and had it
coined into rupees and paid for India's
wheat, cotton, etc. with such rupees, at
their coinage value, but charged gold
prices for the goods they sold to India.
Underlying these causes was the fear
that the United States would suddenly
demonetizc silver and cause the Indian
rupee to lose another large per cent. of
its coinage value.
And why did England advise the
action taken by India? Self-interest.
She had lost more by midas silver
standard, in the almost entire loss of
her market for cotton manufactures.
than she gained in coming silver rupees
to pay for the commodities she imported
from India China Japan and other
eastern nations, to whom England
formerly exported most of her cotton
manufactures, are upon a silver basis,
and India took their silver at the ratio
OF 10 to l, or former par rate, while En-
gland took it at its gold price, or about
two-thirdS of par rate. In 1874 India
exported to China, Japan and other
eastern countries 100000 pounds of
cotton yarn, etc. In 1891 she exported
165,OO0,OO Opounds and Englands cotton
operatives were rioting and clamoring
for employment This explains En-
glands action GEORGE c. WARD.