The record-union., 1893-06-28
Effect of Stopping the Free Coin
age Of Silver in India.
OFFICIAL CORRESPONDENCE CON-
CERNING THE MATTER.
No Relief to Be Had in This Country
Until Congress Meets-EfTect of the
New Order of Things in Wall Street
Expressions of Opinion From the
National Capital.
Special to the REcoRD-vN1ox.

Special to the RECoRD-CNIoN.
SIMLA, June Z7.-Explaining to the
Indian Council the bill providing for the
stoppage of the free coinage of silver, the
adoption OF which was announced yester-
day, the Marquis of Lansdowne, Viceroy
Of India, said he hoped the Government
would not be criticised for disposng of
the important question at a single sitting.
The keynote of the scheme was rather to
prevent further fall in exchange than
raise the value of the rupee.
The fixing of the provisional rate of ex-
change at Is I'D provided automatic means
for preventing the closing of the mints
and the violent disturbing of exchange
rates. The rate of exchange has been
fixed high enough to relieve the Govern
ment 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
silver currency. No attempt will be
made at present to fix the legal tender
price for gold. While the ratio of value
was mentioned it was only provisional
In conclusion, the Viceroy expressed
the Governments sense of the gravity of
the step it was about to take. Person
ally he was averse to all attempts to give
money commodities a fictitious value
The Government would be unworthy of
the name if it left things alone. 1t had
not taken this momentous step with light
hearts. He hoped its action would be
fruitful in good results, and that a suffi-
cienJ reserve of gold would be accumu-
lated to make an effective gold standard
possible.
OFFICIAL CORRESPONDENCE.
LONDON, June 27.-The correspondence
between the Government of India and
the India Office has been issued. 1t opens
with a letter to the Indian 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 de-
Jermining upon an Indian policy as, if
the international agreement should not
be obtained, the United States might sud
denly stop the coinage of silver, leaving
India unprepared. The other communi-
cations discuss the fall in the rupee val
ues and the fluctuations in the rates of
exchanges.
The council, in letter written in June,
advises if the International Monetary
Conferences at Brussels fails, and direct
agreement between India and the United
states cannot be attained, the mints of
India be closed to the free coinage of sill
yer and the gold standard be introduced.
IN minute Barbour, Financial Secretary
of India, opposes the stoppage of free
coinage until it becomes evident that the
United States will not adopt free coinage.
Barbour estimates the total active circu-
lation in India amounts to 1,I50, 900, 600
rupees. while much larger proportion
Is boarded. To establish gold currency.
with full legal tender currency, composed
entirely of gold, it would be necessary to
withdraw from circulation 1,I5O, 900, 600
rupees, and replacing them by e77, 200, 600
in gold.
He, therefore, contends that with gold
standard in India a large proportion of
the circulation must continue in silver.
with silver legal tender to any amount.
If both metals be maintained in circula-
ton, gold coinage to the total amount Of
sI5, 200, 600 will suffice.
Long, in a minute to the Council in
August, discusses the adoption of the
gold standard, and concludes by suggest
ing the ratio of conversion be about one
to twenty.
In subsequent telegram from the Earl
of Kimberley TO the Viceroy of India.
dated June 7, 1898, the former announces
the recommendations of the Herschel
Commission as adopted by the Council at
Simla yesterday. In advising the Indian
Government to exchange gold at the rate
of Cd to the rupee, the commission saws
the object is to guard against the sudden
considerable rise in exchange. Hereafter
the ratio ought to be raised if circum-
stances make it advisable.
EXPRESSIONS OF OPINION.
WASHINGTON, June 27.-One effect of
the action Of the Government of India has
been to renew the demand for an earlv
session of Congress. This view was pre-
scented TO Secretary Carlisle this morning
by many of his Congressional callers and
numerous kilograms from all sections Of
the country. Before going to the Cabinet
Carlisle received cablegram from Lon
don announcing further decline in the
price of silver to SD. At this price the
silver dollar is worth $50 cents.
Senator Dolph of Oregon, the only Pa
oifc slope Senator in the city, said this
morning: 81 am opposed 10 nv col
leagues, you know, on the subject of free
coinage, and am in favor Of MAINTAINING
all currency on par with gold; but it
seems to me this action of the Indian Gov
ernment will diminish instead of increase
f,o, E HI
Sherman law by the Senate.
81 think the effect will be to make the
thoughtful members of Congress hesitate
before they further depreciate the value
of silver by suddenly throwing upon the
markets of the world 4,500,O ounces Of
silver, equivalent to nearly the whola
American product now purchased and
stored by the Government l do not
know that anything better than the re-
peal of the Sherman Act can be done to
relieve the situation. but | am fearful that
the repeal of that Act would be disastrous
10 the finances of the Government and to
silver"
The Senator further desired to correct a
published statement to the effect that he
said in substance that Cleveland would
not be able to command the presence of
Congress at a special session, and that for
himself he should not come to Washing
ton prior to September 30th.
He might have said Congress should
not. on account of the hot weather, be
convened earlier than the Goth of Sep
tember, or that he did not expect TO be in
Washington until the Goth, but he said
nothing indicating any opposition TO Mr..
.-.,.1.,,l 4 -, +hat ha Uould NOT he on