The morning call., 1893-06-28
AFRAID OF THIS COUNTRY.
CleVeland's Leaning to Gold Has
Wide-Reaching Effect.
THE BLAME IS BROUGHT HOME.
There Was a Dread of the Action of
Congress at Its Coming Extra
Session.
Special to TUE MORNING CALL

SIMLA. June 27.-Explaining to the In
dian Council the bill providing for the
stoppage of the free coinage of silver, the
adoption of which was announced yester-
dav, the Marquis of Lansdowne. VicerOy
Of India, said he hoped The Government
would not be criticized for disposing 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 4d 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 Government o
its most pressing necessities, white 1t was
well within the limits of the recent fluctu-
ations. There should be no mistake the
ViceFoy said. about the facts. 1t was not
proposed to substitute gold for silver cur
rency. No attempt will be made at pres
ent 10 fix the legal tender price for gold
While the ratio of value was mentioned it
was only provisional.
lie conclusion, the Viceroy expressed the
Governments sense Of the gravity of the
step it was about TO take. Personally he
was averse to all attempts to give money
commodities a fictitious value The Gov
ernlnent would be unworthy of the name
II 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's sufficient reserve of gold
would be accumulated to make an effective
gold standard possible.
LONDON. June 27.-The correspondence
between The Government of India and the
India Office has been Issued. It opens
with letter to the India Council under
date of March. 1892. urging the home Gov
ernment to aid in the settlement of the
silver question By an international agree
meni. failing which, not 10 defer determine
ing upon an Indian policy as, if the inter-
national agreement should not be OBJ
t@ised, tho United States might suddeDlv
stop the coinage OF silver, leaving India
unprepared. The other communications
discuss the fall in the rupee values and the
fluctuations in the rates of exchanges.
The Council, in letter written in June
advises il the International Monetary
Conference at Brussels fails and a direct
agreement between India and the United
States cannot be attained, the mnts of
India be closed to the free coinage OF
silver and the gold standard be introduced.
In a 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 that the total active
circulation in India amounts to ], ,150 GOO, 600
rupees. while much larger proportion is
boarded. To establish a gold currency,
with full legal tender currency, composed
entirely of gold, it would be necessary to
withdraw from circulation 100000, 600
rupees, and replace them by e77, ZOO, 900
in gold.
He therefore contends that with gold
standard in India large proportion of the
circulation must continue in silver, with a
silver legal tender to any amount l.
both metals be maintained in circulation
gold coinage TO The total amount of
e15,OO0.O0 Will suffice.
ESLong, in a minute to the Council in
August. discusses the adoption OF the gold
standard, and concludes by suggesting the
ratio of conversion be about one to twenty.
In subsequent telegram from the Earl
of Kimberley TO the Viceroy of India,
dated June Z 1898, the former announces
the recommendations of the HerscheI
Commission as adopted by the Council at
Simla yesterday. In advising the Indian
Government to exchange gold at the rate
of Sd to the rupee. the Commission says
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
CALCUTTA, June 27.-General satisfac-
ton is expressed at the action regarding
currency yesterday. Government securl-
ties rose rapidly.