The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-06-28
VIEWS OF FINANCIERs.

silver Discussed by Ii .naers Cannon, Leeoh,
ST. John and Henry Cews. of New York.
NEW YORK, June 27.-Tbe Tribune prints
the folio ing interviews on the silver aues-
ton:
Henry w. Cannon. president of the
Chase National Bank, and ore of tho Amer
loan delegates to the International money
conference. recently hello in Brussels.
said:
1.-The closing of the minis of India against the
free coinage OF silver cannot fail TO depress the
price OF that metal, and the action or the Indian
government should conclusively settle che quss-
ton OF the repeal of our silver purchase act.
India has for many years absorbed enormous
quantities OF silver. In fact silver Is tho only
money used In that country TO any extent. The
fan in the price OF silver has seriously affected
The trade between Great Britain and her de-
ACKNOWLEDGMENT early last fail commit
tee appointed. under Lord Herscheil, Lord
High Chancellor OF England, 10 carefully exam
inc into Indian monetary and currency affairs,
and To report on the whole subject. The pro-
ceedings OF the committee were suspended on
account of the meeting OF the international mon
etary conference at Brussels. and two OF the
members or the Herschell committee were dele
gates that conference. The peculiar position
OF India toward silver freely discussed by
the members OF the conference. publicly and pri-
vately, and both General Strarhy and Currie. the
members OF the Herschell committee, were
strongly in favor of the adoption OF the gold
standard FOR India, II an international agree
nent could not he male liking the status OF silver
= a money metal. Therefore, the report OF the
committee Is not surprising under the circum-
stances.
"lhe importance of the action of the govern
ment of India in dropping the coinage OF silver
cannot Do overestimated at this time. 1t was
the only country. with the exception or Mexico,
III the world. the mints OF which were open TO
the coinage OF silver without limitation. There
fore, at the present time. tie only countries in
the world which are continuing 10 produce silver
legal-tender money are the United states and
Mexico, and 10 must he clear even 10 a casual
observer that 1t Is impossible for the United
4
or the Issuance or money against bullion pur-
chases In all Europe silver Is dishonored and
deht-paying power. The course of the United
states Is clear. We must immediately stop the
further purchase OF silver aud the issuance OF
silver legaltender money. III this course IA pur-
sued there is very little doubt that the Other
nations will be brought to q realizing sense OF
the condition or monetary affairs, and the place
of silver money metal throughout the world
will he settled within a reasonable time. Our
government is pledged TO maintain all our
m0uey on gold basis, and some action should
be taken at once to remove any feeling OF dis
trust and discomfort
Edward q. Leech, cashier of tho Union
National Bank. and for several years DE-
rector or the Mint ct Washington. who is
regarded as an authority on coinage. said:
''lf as am informed. the Herschell committee
has reported in favor OF the closing of the mints
in India to the unrestricted coinage of silver for
individuals, IL means serious blow to silver and
still further depreciation OF the value OF the
metal presume the proposition ia to charge
seignOrage, equivalent 10 the difference between
the market price and the coming rate of silver
which would mean, at the present time. differ
ence of from 30 to 60 cents an ounce. Such ac-
ton, should IL he adopted by Pertinent, would,
OF course. greatly restrict the flow or silver TO In
dia and throw more on European and American
markets. This will have tendency 10 reduce
the price,. At the same time "a Limitation on the
coinage OF Indian rupees, which are never ex-
ported for recoinage should. In time. nave the cf
feet of increasing tho exchange value of snch
coins. silver, as is we'll known. Is the only legal
n
there is in circulation in India
about one billion OF silver. 1t forms the entire
circulating medium OF the country. for while
there Is some paper money in circulation in
Bombay. Madras and a lew large cities, there
are no substitutes for money like bank checks,
etc. throughout the country. and every thing in
the shape OF money consists OF silver rupees and
fractions of rupee. Gold is not legal tender in
India, although the gold mohur and divisions of
IL are coined. The ratio in Indian coinage be-
tween gold and silver is about Is tn /. India
has always been tile great silver sink of the
world. the natural receptacle to all surplus sill
yer for which there is no actual demand. India
absorbs in coinage more silver than any other
country III the world, about $40 ,00O0 600 An
nually. This fact will give some idea OF the
tremendous effect the closing OF the Indian minis
To silver Coinage. IL true. will have upon the
price of the while metal. It is a warming to the
United states that Wa cannot safely 20 further
In the absorption OF deprecated and a de-
preciating metal in our currency without serious
ly embarrassing our financial system"
In the Times the views of silver men
were expressed by William p. ST. John,
president of the Mercantile National Bank.
who said:
India's mints have been for many years open
to unlimited coinage for her legal-tender silver
rupees at a mint charge OF per cent To the de-
positors OF the bullion. Uncoined bullion has,
therefore, had money value OF per cent be-
low the coined rupees in all the domestic trade
aud for all the hank reserves of India. A recent
estimate OF this uncoiDed bullion In india exceeds
$500. 100000. The holders of this bullion are
m of
possibility makes IL difficult 10 conceive tho
action OF the Indian government TO be a. quot
esi- IA to the effect upon ourselves. my I'M
preston is that We will suffer materially but not
TO the extent that Europe will suffer. Europe's
suffering will begin forthwith. British India Is
the creditor yearly or the entire commercial
world. Great Britain Is annually India's debtor
in many millions in excess OF the sum she exacts
In taxes. Continental Europe ia India's debtor
annually for a gross sum- midas settlements
have been made In British bills and I'm shipm. nts
OF silver bullion. The silver shipments have