The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-06-28

LONDON, June 26--In the house of
lords today the earl of Kimberly, lord
president of the council and secretary of
state for India, stated that the Indian
council had passed an act for the imme-
diate closing of the Indian mints to the
free coinage of silver. He added that ar
rangements are being made to issue ru-
pees from the mints in exchange for gold
at the rate of 16 pence per rupee and for
receiving sovereigns aid half sovereigns
at the treasures for he.payment of dues
at the same rate. The earl of Kimberly
further said that it is Intended to intro
duce the gold standard insIndia, but that
gold in the meantime would be made the
legal tender.
In the house of commons Mr.. Gladstone
gave inforamtion similar to that given
in the house of lords by the earl of Kim
berly He added that gold would not be
made a legal tender at present. Regard
ing the silver now on the way to India
Mr.. Gladstone said that the government
of India had been instructed that it was
open to admit this silver to the mints
if it thought fit.
The Right Hon. J. c. Goschen, for
merly chancellor of the exchequer. asked
yer now going to India would not estab-
lish a great injury or affect a destruc-
tion of such silver as was in the hands
of the natives. Mr., Goschen said that the
value of the silver possessed by the ma
tives amounted to 100,OO0,O00 rupees.
Replying to Mr.. Gosehen Mr.. Gladstone
said that he was not in possession of pre-
else information, but he assumed that the
Indian government would not make any
discriminatory arrangements to the dis
advantage of the natives holding un-
coined silver. Doubtless most of the un-
coined silver referred to by Mr.. Goschen
was in the form Of ornaments worn by
the natives.
The correspondence between the gov
ernment of India and the India 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 an international agreement, falling
which, not to defer determining upon an
Indian policy, as if an international
agreement should not be obtained the
United States might suddenly stop the
coinage of silver, leaving India unpre-
pared
The other communications discuss the
fall in rupee values and the fluctuations
in the rates of exchange. The council
in letter written in June, 1892, advises
that if the international monetary con-
ference at Brussels fails and a direct
agreement between India and the I'm
tied States cannot be attained the mints
of India be closed to the free coinage
of silver and gold standard be intro
duced. In a minute Mr. Barbour. finan-
cial secretary of India, opposes the stop
IN fya a becomes owl
dent that the United States will not
adopt free coinage. Mr.. Barbour esti-
mates that the total active circulation in
India amounts to 15O,OOO,OOO rupees, while
a much larger proportion is boarded.
| To establish a gold currency with a full
legal tender currency composed entirely
of gold it would be necessary. to with
draw from circulation ,150.000.000 Of ru-
pees, replacing them by Ell 90 of ster-
ling gold. He, therefore, contends that
with a gold standard in India a large
proportion of the circulation must con-
tinue in silver with silver legal tender
to any amount. If both metals be main
tanned in circulation gold coinage to
the total amount of 15,000,0 900 will suf-
| flee.
Mr.. Long in a minute 20 the council
in August, 1892. discussed the adoption
| of the gold standard and concludes by
suggesting that the ratio of conversion
| be about to 20.
In a subsequent telegram from the
earl of Kimberly to the Viceroy of India
dated June Z, 1898, the former announces
| the recommendations of the Herschell
| commission as adopted by the council at
Simla today. In advising the Indian gov
ernment to exchange gold at the rate of
Sd to the rupee the commission says that
| the object is to guard against sudden
considerable rise in exchange. Hereafter
| the ratio ought to be raised IL circum-
| stances make it advisable.