The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-05-04
SILVER IN The CURRENCY.
Sir HOuldSWOTth Speaks Before the
Bi-metaIliC Congress.

The Fall in Prices Attributed to a Con-
tracted Currency Two Speeches
Against Mono-metallism-The Prin-
oiple on Which an International
Ratio Ought to Be Based-An Inter
esting Paper on the Finances of
India.
London, May 3.-H. H. Gibbs, presi-
dent of the British Bimetallic League,
presided over the second days session of
the international bimetallic congress, in
the Mansion house to-day. Sir William
Houldsworth, member parliament, read a
paper of the effects upon agriculturists,
manufacturers, wage-earners, merchants,
bankers and investors, of the fall in the
general level of prices. This fall in prices,
he continued, was caused by a con tracted
currency and must lead to commercial
and industrial depression, and the conse-
quent injury of all classes MIR. Houlds-
worth contended that falling prices dis
courage capitalistic enterprises, and the
increasing burden of obligations deprives
them of the power of exteding production.
He quoted from the letter of Gen Francis
A. Walker, in support of his arguments,
that falling prices retard industry and
diminish the demand for labor A low
rate Of interest, he said, is evidence of an
abundance of capital and a co-eX1sting de-
preston of trade.
MONOMETALLIsM ATTACKED.
Robert Lacey Everett, NJ. P, and Ed
mund +. Knox, NJ. P, in discussing Mr..
Houldsworth's paper, maintained that
mOnometallism would press powerfully
and unfairly upon the tillers of the soil,
as its tendency was to lower the value of
agricultural products.
Henry II. Gibbs read a paper on 1.-The
Principle. on Which an International
Ratio Ought to Be Based" Mr.. Gibbs
stated that the proportion of gold to silver
at the end of the year 1892 was 1515 to l.
At the present time the proportion was
30 to l. All proposals for bridging the
chasm, he asserted, converge toward the
restoration of silver to its former status
Of full debt-paying power.
THE FINANCES OF INDIA.
Sir David Barbour, late finance minis
ter for India, read paper on The FL
nances of India" in which he said that
the expenditures Of a country always
tend to exceed the revenues. The sudden
declines in the price of rupees have led
to an injurious reduction of expenditures,
| the cessation of public work and the loss
VI NOuLEOl Dy LUe luuldu DuURGB Oh us
I power to maintain a surplus, or to pre-
vent deficit Indian exchange
! had been temporarily improved, and the
! country had been lulled into
a false sense of security when the United
! States increased their purchases ofsilver,
| but when those purchases ceased Indian
exchange fell lower than ever. The effect
of the divergence of gold and silver upon
the finances of India had been a crisis in
volving a waste &C money and mischievous
| fuctuation of policy, and there was a
prospect of further severe de-
cline, and the government of India
would be unable to meet their
obligations. The result of attempting to
introduce a gold standard in India had
been to disturb the trade of India with
silver standard countries, increase In
dias sterling debt, increase the expendi-
lures, increase the taxation, and to cause
the almost total Abandonment of public
works. 1t was too soon, he said, to say
whether the attempt would be successful,
but it was plain that it must require time
and further heavy sacrifice.