Rock Island daily Argus., 1893-06-30
INDIA AND SILVER
The Subject of Remarks by w
L. Trenholm.
REASONS FOR THE BRITISH MOVE

How Depreciating silver Affected Hindoo
Laborers-Colorado Producers Resolve
to stop the output and Throw $4,000
Men Out of work-Cincinnati Traders
Propose "a solution of the Problem-Car-
isles Comments-Bland Full of Fight.
NEW YORK, June 30.-WiIliam L. Tren-
holm, president of the American Security
company, who in a recent visit to India
made special study of the currency of
that country, has the following to say on
the silver question: "News about the clos
ing of the mints of India is to the effect
that the mints will no longer coin rupees
for private account That means, If am
not mistaken that the Indian government
is going 10 do somewhat like our govern
ment-refuse the free coinage of silver, but
use the mints for the coinage of govern
ment silver. There is, however, this diff
ference between our action and that
which Is supposed about to be taken in In
dia. and that is that the action of this gov
ern1nent was under the direction OF the
law which prescribed periodic purchases,
while if the Indian government buys silver
and has it coined they may buy where
they like. when they like, and will prooa-
bly, be able 10 buy very cheaply.
Effect India's Revenues
"The finances of the government OF India
have been for a long time very much en-
barrassed by the fact that the government
is under obligations to pay its European
employees and pensioners in gold. The
government needed more money, but the
people We're already taxed 20 their ut
most capacity. They know no other
standard of value bCt silver and "conse-
quentiy during the fifteen years of declin-
ing prices III the value of silver the masses
in India have been going on giving the
same amount of labor and the same
amount OF property for the rupee that
they have been accustomed to give to that
coin during long anteceient periods. )"
With the raints closed to private coinage
the government can buy for the gold value
of one rupee enough silver to make tao,
thus lGrgely increasing its revenue
Better Market for English Goods.
"The second reason said Mr.. Trenholm,
@for the action of the government Is TO i'm
prove the market in India for English
manufactures. As long as the price of sill
yer was constantly declining in England,
and the estimated value of the rupee in
India remained fixed in the minds of the
people. there was very considerable profit
ia exporting silver bullion from England
to India This resulted in increased ex-
ports TO England from lndla, while the
amount of English manufactures shipped
to India was diminished; first, because a
large part of such exports was displaced
by the increased exports of silver; and,
secondly, because the rising rates of ster-
ling exchange in India made English goods
too dear for the impoverished people of
India to buy in as large quantities as they
had previously been accustomed to. No
doubt the government of India in deciding
to close the mints had in view the proba-
BILE effect of thereby increasing the volume
of Engiishproducts exported to India
TooMuch Silver Production.
'The third motive which may have op-
Grated on the government of India was to
check the over-production of silver. 1t
has bean abundantly proved that the de-
cline in the value of silver, which began
about 1878, was caused primarily by
cheaper processes of production leading to
an increased volume of production. When
this disturbance of the normal relation be-
tween demand and supply had begun to
show its effect in lower prices for silver
bullion the wisest silver using nations Of
the world began to limit their coinage of
that metal and few years afterward
nearly all the European mints were closed
to the free coinage of silver" Trenholm
closed with the declaration that the Sher-
man law must be repealed.