The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-05
NOW ,xnras ACTION AFFECTS Us.

ed the doom OF siFet IN +" '''"Ns
metal. Some men may continue TO strrg-
ole n while against the inevitable. but
,uver as mart Of currency Is ended ex-
ce,t for the purposes OF change and
token coinage. We propose TO make
review OF this case this morning. and
shall therefore no, hesitate to repeat
some things that we have already said
To be satisfactorily viewed the picture
must be complete.
India is an immense territory. cne-half
as large as all the United States, with a
population OF two hundred and forty
millions OF souls. Labor is so cheap that
gold cannot be subdiHded into pieces
small enough TO pay IT. baser
metal is necessary. consequently silver
is the money OF the country. But India
has always been an immense absoroer OF
gold, which is boarded or used for orna-
ment. In the past thirty-fve years she
has imported 49,. 1s7 Of gold equal at
s. to the pound, to ses7, 400, $3.50. but she has
coined Of IT only h.099,sd equal at the
same rate TO $4,000.
The unit of value In India is the silver
rupee. which would contain As cents IL
silver had not suffered the decline In
value since 1873. Nevertheless. though
silver has lost one-third of its value
everywhere else the rupee retains the
same value In India. outside Of the sea-
ports and the large interior cities that
Il possessed fifty years ago. It viii buy
as much labor and as much Of whatever
else the natives have to sell as 1t bought
then. This is the pivot OF this whole case
and the case will never be understood I'M
IN that fact is indelibly burnt into the
mind. And the ignorance and primitive
character Of the people OF India must
equally be borne In mind at the same
time. to understand the difficulty IN effect
ing change. Heretofore. men bought
wheat or cotton In India TO be paid for
in silver rupees. They sold the articles
in London for gold. purchased in London
enough silver when coined into rupees
10 pay for the wheat or cotton, sent it to
the Indian mints. which coined all silver
brought 10 them by any one, received
rupees from the minis and paid with them
for the wheat and cotton bought. The
Indian Government has now stopped the
mints from coming silver for private ac-
count, though the Government continues
TO coin as much as 1t chooses, and the
rupee will remain a legal tender for 4S
cents. It also declares that it will give
a silver rupee with a debt-paying power
of As cents for every thirty-two cents
worth Of gold that is offered to It. This Is
distinctly a move the ultimate purpose Of
which is TO end silver as the money Of
account in India and 10 bring about a
condition in which gold will be the stand
ard Of value but because of the charac-
ter Of the Hindoo population the change
must necessarily be very slow. 1t IS
expected TO operate through offering As
cents for 80 cents 1t is thought that the
Hindoos will bring out their immense
stores Of boarded and ornamental gold
when they can get silver rupee that
viii certainly buy As cents worth Of labor
and perhaps other things, and pay 4S
cents Of debt, for 30 cents worth of the
yellow metal. and there can be no rea-
sonabIe doubt that the gold will answer
TO the call. This gold will be coined,
and though not yet made a legal tender.
will be showed out amongst the Indians
as rapidly as the Government is able to
make it overcome their inveterate preju-
dices and almost idolatrous preference
for silver. We have not the slightest
doubt that this measure will gradually
undermine silver in India and make gold
the currency of the country, but England
has tackled the most difficult problem
she ever yet attempted to solve when she
undertakes to make the heathenish Hin
docs change hereditary prejudice. She
will solve the problem, however, and
India will become gold basis country in
time.
But how will this affect us?
AS soon as the announcement was
made OF the India Governments action,
owners OF silver mines went into state
OF panic because they understood it to
mean that India was henceforth to be no
consumer Of silver. They thought it ended
their market there for silver. Their fears
that II would seriously affect their mar
ket were justified. 1t will not end India
as a purchaser OF their silver, but II will
end the United States as such purchaser
India will continue for a number Of years
TO buy Just as much silver as she has been
buying, but as her action ends silver as
a money metal. the United States will
be no longer a buyer Of it. The mine
owners were hurt. therefore, but in way
different from what they thought. That
India will remain a purchaser of silver as
Of yore is very clear to whoever will think
OF the matter.
India's foreign trade Is very large. AZ
ter paying for all that she imports and
paying interest on a huge debt that she
owes in England. every year still brings
her IA balance Of from forty to fifty mil
Hons Of dollars. How will that balance
be paid? a Bombay merchant sends into
the Interior and buys 10000 bushels Of
wheat TO be exported to London. He
contracts 10 pay the farmer. let us as
sumo. two silver rupees per bushel for
the wheat. He ships It TO London and
sells u for gold. The wheat brings Y
cents a bushel in gold lie takes eight
cents Of this and puts il in his pocket