Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-06-27
Reasons for the Stopping Of Silver
Free Coinage.
VIEWS ADVANCED BY THE VICEROY.
What is Said by New York
Bankers.
SITUATION IN WALL STREET.

the free Coinage OF silver ana Otner monetary
the adoption Of which was announced
the Marquis of Lansdowne, viceroy
Of India, said he hoped the government would
not be criticised for disposing of the i'm
portant question at a single sitting. The key
note Of the scheme was rather to prevent a
further fall in exchange than to raise the value
of the rupee. The fixing Of the provisional
rate of exchange at Is. I'D. provided an
means Of preventing the closing OF
the miuts and the violent disturbing of ex-
change rates.
The rate Of exchange had been fixed high
enough to relieve the government OF its most
pressing necessities. while it was well within
the limits Of the recent fluctuations. There
should be no mistake, the viceroy said, about
the facts. 1t was not proposed to substitute
gold for the silver currency. Noattempt would
be made at present to fix legal tender price
for gold. While the ratio Of value was men
toned it was only provisional.
In conclusion, the viceroy expressed the gov
ernment's sense of the gravity Of the step it was
about to take. Personally he was averse to all
attempts to give money commodities fictitious
value but the time had arrived when to remain
inactive was impossible. The government
would be unworthy Of the name if it left things
alone. 1t had not taken the momentous step
with light hearts. He hoped its action would
be fruitful in good results and that sufficient
reserve of gold would be accumulated to make
an effective gold standard possible.
CALCUTTA, June 27.-General satisfac-
tion is expected here al the action regarding
the currency taken by the India council yester-
day. Government securities rose rapidly.
LONDON, June 27.-Rupee paper is very
strong at II, owing to the action taken yester-
day by the government OF India on the silver
question
WHAT Is SAID IN NEW YORK.
NEW YORK. June 27.-Mr. Henry W. Cannon,
president Of the Chase National Bank, and also
one of the delegates to the monetary conference
at Brussels, saws regarding the Indian silver SEN
sation:
The importance of the action Of the govern
ment Of India in stopping the coinage Of silver
cannot be overestimated at this time. 1t was
the only country, with the exception Of Mexico,
in the world the minis of which were open to
the coinage of silver without limitation.
Therefore. at the present time, the only
countries in the world which are continuing TO
produce silver legal tender money are the
United States and Mexico, and it must be clear,
even to a casual observer, that it is impossible
for the United States to safely continue the
coinage of silver or the issuance OF money
against bullion purchases
I'm all Europe silver is dlshonored and gold
Is fast becoming the only money OF full debt
paving power. The course of the United States
Is clear We must Immediately stop the further
purchase of silver and the issuance Of silver
! legal tender money. If this course Is pursued
there is very little doubt that the other nations
| will be brought to a realizing sense Of the con-
| dition of monetary affairs. and the place OF
| silver as a money metal throughout the world
| will be settled within a reasonable time. Our
| government is pledged to maintain all OF ouI
| money ON a gold basis. and some action should
be taken at once to remove the prevailing feel.
| ing of distrust and discomfort"
JOSEPH C. HENDRIX.
Mr.. Joseph C. Hendrix, president Of the
National Union Bank. said: 1.-THE supersatura
| ton Of our currency with silver in the face o.
| the preference of civilized nations for gold Ii
fast becoming an historical Absurdity, and wheI
a siver-using country isforced oy the sternness
| Of natural laws to weaken its faith and prepare
i to diminish its devotion to the inferior metal
| the lesson is so timely that no one can doub
i the effect on sober-minded citizens. This coun
try must follow the money fashions OF tn
world, not try to make new ones"
EDWARD o. EEEcH.
Mr. Edward o. Leech. who was director o
the United States mint when the Brussels con
ference was held. attended the meetings Of thu
body in an advisory capacity. In an Interview
Mr.. Leech said:
"Silver, as is well known, is the only lega
tender money in British India and the oni
money in circulation in the vast empire. 1t
estimated that there is in circulation abou
81 900 900 900 in India. 1t forms the entir
circulation medium Of the country, for Will
there is some rupee paper in circulation 1
Bombay, Madras and a few large cities, ther
| are no banks, no substitutes for money Liz
checks, &c. throughout the country, an
everything in the shape OF money consists {
/ silver rupees and fractions Of rupee. Gold
not legal tender in India. although the gol
mohur and divisions are coined. The ratio
Indian coinage between gold and silver is 10
81, so that an ounce Of silver In such coinage
valued at about Sl.36.
India has always been the silver sink OF ii
world. the natural receptacle OF all silver SUI
= plus for which there is no actual demand. Ind
absorbs in coinage more silver than any oths
country in the world, about $40 300 900 al
. nually This fact will give some idea OF II
| tremendous effect the closing Of the India mil
to silver coinage. if true, will have upon the prt
of the white metal 1t is a warning to the Unite
States that we cannot safely go further in Il
absorption of a deprecated metal in tn
country without seriously embarrassing OF
I financial system"
3 W. p. ST. JOHN.
e William P. St.John, president OF the Merca
/ bdDh, cdft M w sAV SASSs VI oNA S>~ ~
; | if this report be correct. my impression Is tn
y we would suffer materially, but not to the gre
Q degree that Europe would suffer. Europe
sufferings would begin forthwith, Is l
:. dia is the creditor yearly and every trade
I. the commercial world to continental Europe
It England's debtor annually for gross su
d which ranges between S70000.000 and excee
n ing S1OO, 100000. Europe's settlements ha
e been made in British consul bills shipmer
!, of silver bullion for the remainder. These 9
yer shipments have ranged between $4,000, 0
and SlCO. 600 900 year. If gold is hencefor
to take the place Of silver in these settlement
3 as must follow the absolute closing of
Indian mints the commercial world may W
a prepare at once for such a currency question
has never yet engaged attention.
EFFECT on THE SILVER MARKET.
A member of large firm Of bullion dealt
o. in New York said with regard to the closing
; the India minis against private bullion:
lie don'tsee how the action of the Indian governme
in closing tine minis will much diminish the {
mand tor silver in India. India Is credl'
country, and do not see how her balance
n trade is to be settled save in the old way,
al imports of silver If the minis are closed
private persons then the government Will nave
import silver for coinage purposes In place
private parties. The only possible way
which midas demand for silver would be lie
Nv ened would be by the cessation OF the exps
NJ sion of her exports in consequence OF the
re prices of silver.
~ 81 aat vaar the excessively low price of sill