The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1893-12-21
.INDIA And SILVER
The Deplorable Condition of
That Country.
UE TO STOPPING SILVER COINAGE
Since the Action of the Indian COun-
Gil They Have Borrowed c4.SOO,-
900 and Will BE Compelled to
Borrow e22,OOO.OOO More
Trade III Bad Condition.

The action of the imperial legislation
council of India in closing the Indian
mints to the free coinage of silver has
proved disastrous to Indian finances. A
Lonuon telegram of December 10th states
that since the mints were closed, which
occurred, as will be remembered, about
July lst, the Indian council has had
to borrow E4,900,000, and that in the
coming year the council will compelled
to provide E220O0O0O. Furthermore,
that Indian trade is in a worse condition
than at any time before the closing Of
the mints, and that the treasury is in
such state as to cause grave apprehen-
sions We learn also from papers received
from the Orient that the industrial and
commercial disturbances in India, which
have resulted from the unsettled state
of the currency, are of the most serious
character
It may be worth while to recall the cir
cumstances attending the action of the
council in closing the mnts and the con-
nection of that event with the silver
struggle in the United States. When the
facts are examined it is seen at once that
the attempt, the futile attempt as it has
proven so far to force India with it's sill
ver-using population of 20O,000,00O to
accept the gold standard, was closely
connected with the suspension of silver
purchases in the United States and the
conspiracy to compel this country to
adopt the monometallic system.
The government finances of India have
been in very disturbed state ever since
the depreciation of the gold price Of sill
YER. The Indian revenues are raised en-
tirely in silver. They amount to some $685.
100000. Ofthis amount about E15, 900
is required for the payment of charges
for interest and other payments to the
home government, and must be remitted
in gold. The result has been that the In
dian council has constantly fallen be-
hind. Already the taxes are SO burden
some that to increase them is out of the
question, and as silver continued to de-
cline, as estimated in gold, the deficit
increased.
At the Brussels conference the repre-
sentatives of the Indian government
were strongly in favor Of the restoration
of silver and the council concluded to
close the Indian mints and abandon silver
in a word, to attempt to bring India to
the gold standard, only when it seemed
to them that there was no hope for silver.
A commission was appointed to con-
slider the subject, which reported to the
council in June, when unexpectedly and
to the surprise of the world the council
suddenly passed the measure closing the
mints to free coinage and fixing a price
in gold at which silver would be received
for taxes or exchange at the mints.
The distinct reason given for taking
this action was that the United States
was about to abandon silver by repeal
ing the Sherman act. In sheer despera-
ton, and yet without much hope Of sue
cess, this Indian council adopted the
drastic remedy of trying to force India
to the gold standard. The attempt has
proved, as we have said, total failure.
The ueeming millions of India are we'd
ded to the use of silver and will not have
gold. The further decline of silver has
not only embarrassed the council by en-
hancing exchange and making 1t more
difficult to remit, but it has increased
the inflow of silver and increased prices
of commodities, making 1t more difficult
to collect the revenues.
The only thing calculated to inspire
hope in connection with the matter il
the possibility that disturbance of Indiar
finances may force England to the neces
sity of considering tie wisdom of The
restoration of Bi-Metallism.