The Delta independent., 1894-06-20
THEiNplAN SILVER EXPERIMENT

Tho fact which we noted last week, says the
Engineering and Mining Journal, that natives
OF lndir have begun TO sell gold from their
boarded stores in considerable quantities, de-
serves careful consideration. It 10 we'll known
that for many years India has absorbed told,
which has remained In tho country, very
largely in the form OF teweiry and ornamens,
which are highly priced by all Eastern Peo-
pies. Figures Of Indian trade collected and
published some time ago by tho London
otdttst showed tkat In thirty three years prior
10 1892 tho gold imported into India not ac-
counted Tor, and presumably ~ held M In the
country, amounted TO El26 ,OO0, 900, or no
less than $3.50, ,0O0,O To this must be added
previous accumulations, of which no accurate
estimate can be formed
Formerly the current price OF gold In India
was from Ii to 10 rupees tho tola. The toia
Is the SINE weight as the silver rupee, SO that
the price correspcnded nearly TO the long
established coinage ratio of the metals. Re-
Gently however the price has gone up rapidly,
until gold sells at nearly double the old price,
a late quotation being 81 rupees the tola. This
high price is tempting, and accordingly tho
golden boards are beginning 70 See the light
once more.
The theory ol the Indian currency commits
zion, on whose report the Indian mints were
closed to silver coinage eleven months ago,
was that when the government officially fixed
the value OF the silver rupee at Is. 4d., ana
offered 10 exchange a sovereign for Is rupees,
the value OF the coin would be fixed and re-
main stable, while at the same time the cessa-
ton of coinage would have the effect of draw.
ing out the boarded gold In the country and
bringing II into the treasury In exchange for
the silver coin. AT the same time 1t was pre-
dicted that, as the white metal could nj longer
be coined the imports OF silver into India
would practically cease, or at any rate be
much diminished. Moreover, 1t was said,
the value Of the rupee being fixed, there
would be mn end 10 the fluctuations and do
preston Of trade due to the decreasing value
OF silver, which would no longer be the stand
ard of the country.
Events have proved thA, the prophecies Of
the advocates OF the gold standard were based
upon an entirely false view of the situation,
and they have proved also how little the
tnancers Of the currency commission under
stood the Indian people. No one Of the pre-
dictions made has proved true. The rupee
has continued to fall steadily, until now its
trade or exchange value Is but little over I'D,
or nearly 25 per cent below the so-called
''hxed' value Of less than year ago, with
every prospect that by the time the year IL
completed It will be still lower. The gold
boards are beginning to come out, !; 10 true,
but not the treasury, since the yellow metal
10 sold to speculators, who are willing TO pay
an apparently high price for It In the silver
coin, which is stili the currency Of the coun-
try, and 10 accepted hs the standard by the
natives. Imports OF silver, stimulated doubt
less by diigeni effort to unload" silver on
tain future, continued on large tcale and
serc hardly checked by the imposition OF .
iuty Of ) per cent The fluctuations OF trade
have been greater and more injurious than
ever before. The large export trade from
India TO China and Jal an and 10 other silver
using Eastern countries has suffered a very
serious decrease. In this and other ways the
purchasing power of the country has been
diminished that the effect has been very
seriously felt by the English manufacturers
who supply the Iudian markets.
In other words, the stoppage OF silver coin
age and the attempt TO force the single gold
standard upon India, have been a complete
1t might almost be said adisastrous-failurc,
and the Indian government is now seeking
for remedy for the results Of It's unwise
action In all directions but the right one,
NhIch Il clearly the adoption OF bimetallism
by international agreement
There is further danger which may be
realized at any time. The Hindoo is slow to
move. but is also very strongly attached to
his own people, and Is especially liable TO be
Influenced by panic, ana prone To act In a
mass. Should the people generally begin TO
believe that silver Is actually doomed, and
that their boards OF the white metal are going
to keep on decreasing in value, there may be
a general panic and silver be sold 10 buy
gold. The white metal would then so down
far below Its present price, and might even
reach the level where the price is wholly de-
,crmincd by the demand for 1t in the aru;
that is, II may stand on the same level as cop
per, zinc, tin, lead aud iron. Such panic
may occur at any time, and 1t is not at all
likely to be forcscen. Meantime the injury
TO Indian trade and to the interests of Eng
llsh manufactures, whose Indian sales form 4
large part Of their business, is a continuing
one. Outside OF the government many have
correctly judged and weighed the facts, and
1t is this which, 10 great part, gave so much
weight and Importance to the recent b.
metallic conference In London.
1t lie within the limits Of possibility that the
indian gold movement referred TO above may
become of great Importance. The sale OF
gold Is very likely TO Increase, and II the esti-
mate given above is nearly correct, there is
not far from 5000, 900 600 In boarded gold In
the country. The estimate may be an cx-
agEeratcd one; some of the gold has un-
doubtcdly disappeared and still more will re-
main boarded, but enough of it may be drawn
out TO make a material addition to tie world's
floating stock OF the yellow metal. On the
other hand. II the Indians should sell silver
Ind buy gold, which IS quite possible, not
only would silver so down in price 10 figures
never heard OF, but gold would go up from
the great demand thus created
Mining Notes,