The morning call., 1893-08-17
INDIA HAS WEAKENED.
The White Metal to Be Given Chance
- Once More. -:

NEW YORK.Aug. 16.--London cables re-
ceived in Wall street this afternoon report
that the Indian Council had receded from
the positionlt took when it clOsed the In
dian mints to free coinage of silver and
were selling council bills below the arbi-
trary fixed rate of 15Ad. Advices were
meager and did not state whetherthe mints
had been reopened.
/ In the absence of definite news 1t was
supposed the Councilhad been unable to
maintain the rate of exchange: on India at
the prices fixed. Few persons understood
what further changes might be expected
or why the reduction had been. ordered.
1t was the original action: OF the Council in
fixing rupee price and closing the mints
that sent silver from: 80 to 81 cents an.
ounce. :
LONDON. Aug. 16:-Ths money market.
was surprised and disturbed to-day by the.
sale of Indian Council drafts at Is 81
When the Indian mints were closed to the
free coinage of silver the Council fixed the
rate for drafts at is 4d, and the sudden re-
duction caused general feeling of uneasi-
ness.
Tenders for bills at Is 31s d were refused
In consequence of the: reduction in the
price of drafts rupee paper dropped 11sd.
The Times, in "a financial article this
morning, says: Denver and Rio Grande
preferred was quoted higher yesterday
owing to an absurd impression that the
Indian Government was about to reopen
it's mtnts to silver. -.
Whether the decision taken lately on
this subject be wise or not, it is not at all
likely that the Governments would inter-
rupt it as soon as this. Tie origin of the
rumer was the action of the Indian Coun-
ell in selling drafts at Is SID.
From the beginning it was doubtful
whether thes Council would be able to.
force the market to buy on its own terms.
The fact That Indian exports would be I'M
.medlatefy contracted and Indian imports
expanded, thus simultaneously reducing
the demand for and increasing the supply.
of remittances to the East. had. we must.
assume. been overlooked or not sufficiently
allowed for.
Moreover. no account could, have. been
taken of other means Of making remit
tanees which, at pinch. could be and &C.
tually were made use of, such as rupee;
paper and even silver.
''On the other hand we fear that the ma
jority of the Council overestimated the
fdViuilS Will WHICH InG cessation OF COln-
ing would begin to give the rupee monop-
oily value.
This was:a matter on which 1T would
have been foolish for any outsider
to. offer an opinion, but .arguing
purely on a priori grounds we should
certainly have thought it rash
TO assume that a cessation of coinage. of
less that two months could possibly affect
The value of an article of which so large
an amount was known to be in existence.
Perhaps the stoppage of mintage for a
year may produce some effect, but even
that is in no way certain" d.
The Standard regards the ludian Coun-:
ciPs action as a complete confession of
failure: seldom paralleled in the action of
any Government.
The Financial News says: ..What fur.
ther results will flow from the Indian
Councils action it is i'm possible to- foreteIi.
1T virtually nullifies the step taken on
June g. and logically must sooner or
later lead to question. whether, after all,
it is not better for the Indian Government
to admit its blunder and reopen the mints
tl silver" =: