New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-06-28
A BLOW TO SILVER VALUES.


to an international agreement upon hNcd ialo
between gold and silver. The Sherman law shouid
have been repealed long ago If it had been
think that The position Of silver would have oeeh
much better than 1t is to-day
HENRY W. CANNoN'S VIEWS.
Henry w. Cannon, president of the Chase
National Bank and "a member of the Brussels In
ternational Monetary Conference, declared 'ha'
the closing of the minis of India to the free
coinage Of silver would have serious effect upon
the trade between Great Britain and her de-
pendences 1t is difficult, he said, TO under
stand how the Government of Great Britain can
arrange for u gold standard in India ana con-
tinuc to use the immense amount OF silver Ill cir
culation there. The complete decentralization oil
silver in India would be great disaster TO 'he
middle and lower classes, and 1t Is dlnicuit 10
understand how Great Britain can afford to de-
preciate prices and demoraze trade in her richest
dependency. II silver is to be abandoned aS
money metal what will be the value Of the I'M
mcnse stock Of silver in India and the East ana
the silver coins now in circulation and held IN inc
great banks of Europe as basis for the reoehp
ton Of notes outstanding? One thing is GER
tain, namely, that the United States Government
can endure any depreciation of silver which will
be brought about by the demonstration in India
much better than the other countries. 1t now
seems clear that the time is near at hand when
the question as to whether or not silver is a
proper basis for full legaltender money should
Le determined
COMMENTS OF EDWARD o. LEEch.
Commenting on the additional advices received
respecting the action of England with regard 10
India's currency system, Edward o. Leech,
formerly Director of the Mint. and now VICE
president and cashier Of the National Union
Bank. made this statement:
India has been for many years the largest
absorber OF silver in the world Silver went
there as naturally as the rivers flow 10 'he
sea. for the reason that il the only cur
rcncy in that vast empire of 250,O0O0Oo people,
mostly poor farmers and ryots IL was dis
tributed in small silver coins 1.-THE largest rupee
worth before its depreciation shlllings, or %
CENTS and since then about so cents, ana the
only money the people knew was silver coins
In recent years the banks in the Urge fresl-
dency towns have been authorized TO issue paper
money in limited quantities, redeemable III the
Presidency where issued. but it has cut no great
figure In circulation and is practically unknown
in the interior and in the Straits settlement, wih
which India has large dealings. Gold was un-
known as money. although vast quantities nave
been imported in former years, which was
ho:rded used for jewelry and ldois ~Du H''ie
of it coined-practically none.
India and the United States have absorbed re-
gently about lOO, 900 ounces of silver an
nually. leaving only 100000 ounces for the
rest of the world, over one-haM of which was used
in the arts 1t will be understood that Mexican
coinage cuts no figure, it is about all reconed
BY India, the United States and other countries
nearly as fast as issued from the Mexican mints.
But the silver coinage of India. say S4o,O0oooo
year, stuck, to use homely expression: IL Dc
came actual money for every day use ana was
neither recoined nor exported, except II adjacent
countries The balance Of merchandise trade due
British India annually by European countries
amounts to SOY 81 coo. But India owes
Europe for interest ard fixed charges sum Gazing
for say 500, O00, 900 annually, which is PAD by
bills of exchange drawn BY the India Council re-
siding in London, on the Indian Government anu
sold for gold in London. This Offsets ABOUT Soo,-
600 of silver to India but the balance of $40.
600, 900 has been paid in silver, shipped IN bars
and Mexican dollars and coined into rupees and
fractions at the India minis with slight coinage
charge about per cent. think. and absorbed
into circulation as a sponge absorbs water
UNFORTUNATE HISTORY OF THE WHITE METAL.
Some idea of the magnitude of the change
which has been made by the closing of the India
mints to silver coinage can be formed from these
facts II is the most momentous event in the
unfortunate history Of the white metal since the
decentralization Of silver by Germany in 1918
and the subsequent closing Of the French minis
to such coinage. One by one the countries OF
Europe have closed their minis to silver conag'
until none are open to-day. Only India, Japan,
Mexico and some South American countries wcre
left. As have said, the Mexican coinage counts
for nothing. Japan and South America cut N
special figure. India was the great silver colner,
tie idol Of tho silver enthusiast and now, alas,
India has had to succumb TO the logic of events
ard the United States, the largest producer OF
silver is left as the only customer for the white
metal We quit coming II some time ago, as the
limit to the absorption of deprecated dollars which
would circulate side by side with goll be-
lieved TO have been reached, but the purchase
Of the metal with gold for that is what it is
practically still continues What is TO become
o. tho vast amount India has been taking
What IL TO be the future of silver? These are
great questions. Who can answer them further
than to say that the outlook for the restoration
OF the white metal as legal money seems almost
hopcless' The reduction in price may reduce the
output, but II must not be forgotten that more
than three-ffths OF the silver produced, probably
two-thirds, is found in combination with lead
and copper and may be called an Incidental
product of copper and lead Mines rather q
valuable component OF such ores. IL does moi
seem possible that the United State:
will continue the struggle for silver
IN tho face Of its abandonment by India. l see
that the Yiceroy says IL does not meal
a gold currency. 1t certainly Is the first stcI
in paving the way for gold standard. What
does fixing arbitrarily the rate Of exchange o;
London Tor. what is the same thing. the value
in gold of the pure silver in the silver rupee
at l6 pence, or 80 cents, mean, but an arbi
frary act renewing the rate of exchange from
the influence of the changes in the price, Of
silver ard fixing it at an arbitrary gold valNla
ton? But for this, arbitrary arrangement IN
rate of Indian exchange would have fallei
enormously the last two d1ys by the very ac
OF closing the Indian minis. 1t was done u
prevent such fall. which would have wiped ou
business profits in recent shipments OF mer
chnndisc 70 India by English merchants | have