The morning call., 1893-08-03
SILVER in INDIA.
The Change in the Value
of the Rupee.
HOW 1T AFFECTS AMERICA.
Jamsetjee N. Tcta, a Rich Merchant,
DenOunces the Late Act of
the Council.

yesterday of Jamsetjee n. Tata. the first
wealthy representative OF India to visit
this city direct from that empire since the
passage Of the act of Council raising the
value of the Indian rupee. The signif-
canoe OF that act and its relation to the
existing stringency in the United States
has been generally insisted upon by the
worlds fnanciers.
Mr.. Tata arrived in the United States
two weeks ago. landing at Vancouver. and
has had plenty of time since to study the
financial situation here. He is promi-
nent capitalist of Bombay, where he re-
sides at the EspIanade House, and has
also summer residence on cool plateau
800 miles south Of that commercial center.
He also holds large interests in England
and Is travelling with party of friends.
among whom are his English agents. His
testimony on the attitude of India on the
currency question is therefore of peculiar
value.
Mr.. Tata plunged without hesitation
into the silver question,
1.-The situation is most grave" said he
(he speaks English with the duency of a
natlve). and is altogether attributable to
the stand India has taken upon the value
OF silver. When | say India of course
mean the British Government. The Lon
don Times recently said that the change in
value created by the Government was the
most radical ever made and would affect
the entire commercial world. 1t seems to
me when l hear of what is going on in
Australia and America that this statement
Is being verified.
Il should remind you that by decree Of
the Council Of June q last the value Of the
silver rupee was raised from one shilling
and twopence halfpenny to one shilling
and fourpence. This is the whole cause
Of the financial disturbance. take it. all
over the world. small as it may seem.
II am not silver man and the change
has benefited me largely, but have no
hesitation in saying that this act was most
iDiQuitous and entirely uncalled for.
ut was brought about largely by the
persistent efforts Of the Indian civil serv-
Ice. whose employees are robably the most
highly salaried in the world. Why the
Governor-General receives salary of
$4,000 year, his executive council Of
four $50 900 year each, the two Lieuten-
ant-Governors $4,000. AMI so on do wn the
list.
mo other Government pays 30 well for
such services, the preieXt being to keep up
high standard of ability. These ser
wants, with the exception of the highest
officials, receive their pay in silver and are
naturally Interested In securing a high
rate of exchange.
But the brunt of the advance falls upon
the wretcbed native. The peasantry Of
India is, as you knOw. the poorest in the
world. Innumetable Government Stats
tics have proven tnat the average income
of the Indian resident is 25 shillings a wear
or only S., while the average for the
American is $500. When it is taken into
account that the rich Indians are included
In the calculation the miserable amount
upon which some natives must live is ap-
parent
Most natives exist upon small holdings
Of land from half an ucre up to six acres
large. On these they raise everything
from wheat to rice, and the result of the
capricious raise in the value of the rupee
is TO decrease the value of their products.
Why, the rupee is divided into sixteen
anas and the ana into twelve pi; the ana
is worth about one cent, and the api is. of
course. one-twelfth of that Yet the pi
Itself is considered too large a cotn for ma
tive transactions aud that is divided into
twelve c0wries. Now the Government is
trying to raise the value of the rupee to
parity with gold, and you can see how
utterly ridiculous it would ever be for
native to deal on gold basis.
II am happy to inform you that not only
!, but the whole OF my class in india. ia
awakening to the peril OF this step. They
understand that Indla's prosperity de.
ponds upon her agricultural interests and
that commercial collapse must follow
this suicidal finance. America. as a great
slver-sroducing country, is profoundly
affected by IT., as the movement has called
into India all the silver available, the
bankers being naturally anxious to realize
the enhanced value of the rupees and the
Indian minis are thus practically closed to
foreign shipments.
IL think | can assure you that system.
attic agitation will result in the English
Government recOnsldering this step. The
Government would not pay any attention
to the natives sutferIngs, but cannot
ignore. a protest made by the capitalist
Class"
Mr.. Tata is on his way 10 England, and
en- route will visit the Worlds Fair at
chicago. He says the fair has excited
wide Interest throughout India.