The Bessemer indicator., 1893-07-01
ANOTHER BLOW TO SILVER.
The Free CoinAxs OF silver ia Insla sss-
pended and Builioa Drops
IN tt Centx.

TO- IT Cents.
In the House of Lords on the Goth the Earl
of Kimberly, lord president OF the council
and secretary OF state for India, stated that
the India council had passed act for the
immediate closing of the India mints to free
coinage OF silver. lie added that arrange
mcn.s are being made To issue rupees from
the mints in exchange for gold at the ra,e OF
sixteen pence per rupee and for receiving
sosereigns and half f-soverclgns at the treas
urlcs in payment OF dues at the same raie
The Earl of Kimberly further said that Il is
intended to introduce the gold standard In
India, but that gold in the meantime would
not be made n legal tender.
In the House of Commons, Mr.. Gladstone
gave information similar to that given in the
House of Lords by the Earl of Kimberly lie
added that gold would no, be made a legal
tender at present. Regarding the silver now
on the way to India, Mr.. Gladstone said that
the government OF India had been instructed
the mints II it thought 1T
The correspondence between the govern
ment of India and the Indian Office has been
issued. 1t opens with a letter from the
India council under date OF March, 1892,
urging the home government to aid In the
settlement OF the silver question By m inter-
national agreement, failing which, not TO de-
fer determining upon an India policy. II an
international agreement should not be obtain
ed the United States might suddenly stop
the coinage OF silver, leaving India unpre-
pared.
The communications discuss the fall In the
rupee values and the fluctuations In the rates
of exchange.
The council In letter written in June.
1892, advises that II the International none
tary conference at Brussels falls, and d.
rect agreement between India and the United
States cannot be obtained, the mlnts OF India
be closed 10 the free coinage of silver and u
gold standard be introduced.
In a minute, Mr.. Barbour, financial sccrc-
tary OF India, opposed the stoppage of .he
free coinage until 1t becomes evident that the
the United States will not adopt free coinage.
Mr.. Barnam estimates that the total active
circulation In lndta amounts 10 |, $50, 600 600
rupees, while n much larger proportion Is
boarded. To establish gold currency, with
a full legal tender currency composed en-
tirely OF gold, 1t would be necessary to with
draw from circulation l,l50, 0,000, 600 rupees,
replacing them by 100000 gold. lie
therefore contends that, with gold standard
in India, large proportian OF the circulation
must continue In silver, with silver legal
tender 10 any amount II both metals be
maintained in circulation, gold coinage
to the total amount of el5,000,O 900 will suf-
fec.
Mr., Long, in minute to the council. in
August, 1872, discusses the adoption OF the
gold standard, and concludes by the sus-
gcstion that the ratio OF conversion be about
to 20.
In a subsequent telegram from the Earl OF
Kimberly to the vlceroy of India, dated Jane
I. 1893, the former announces the recommcn
dat!ons of the Hcrschel commission as adopted
by the council at Simla to-day. In advising
the ludan government to exchange gold Mt
the rate Of lGd to the rupee. the commission
says that the object is to guard against a sud
den considerable rise In exchange. Hereafter
the ratio ough, to be raised If circumstances
make 1t advisable.
As result of the action of the Indian gov
cfnmrnt silver certificates have dropped In
New York to ~ &c, the commercial bar silver
TO nc, and Mexican dollars to CO.