The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1894-01-26
IND1A.s sILvER PRoBLEnr.

INDIA'S SILVER PROBLEM.
The action of the imperial legislative
council of India in closing the Indian
minis to the free coinage of silver has
proved disastrous to Indian finances.
A London telegram states that since
the minis were closed, which occurred,
as will be remembered, about July 1
1893, the Indian council has hal to
borrow about 94,8O0,O00, and that in
the coming year the council will be
compelled to provide 922,Oo0,00o. Fur
thermore, that Indian trade is in
worse condition than at any time be-
fore the closing of the mints, and that
the treasury is in such a state as to
cause grave apprehensions. We learn
also from papers received from the
orient that the industrial and CONNER
ciAI disturbances in India, which have
resulted from the unsettled state of the
currency, are of the most serious char
acter.
1t may be worth while to recall the
circumstances attending the action of
the council in closing the minis and
the connection of that event with the
silver struggle in the United States.
When the facts are examined it is seen
at once that the attempt. the futile at
tempt as it has proven SO far, to force
India, with it's silver using population
of 2OO,OOO,OOO, to accept the gold stand
ard, was closely connected with the
suspension of silver purchases in the
United States and the conspiracy to,
compel this country to adopt the mo-
nometallic system.
The government finances of India
have been in very disturbed state
ever since the depreciation of the gold
price of silver The Indian revenues
are raised entirely in silver. They
amount to some 985,OOO,OOO. OF this
amount 915,OO0,OOO is required for the
payment of charges for interest and
other payments to the home govern
ment, and must be RENTED in gold.
The result has been that the Indian
council has constantly fallen behind
Already the taxes are so burdensome
that to increase them is out of the
question, and as silver continued to
decline, as estimated in gold, the deficit
increased.
At the Brussels conference the rep
resentatives of the Indian government
were strongly in favor of the restora-
ton of silver and the council conclud-
ed to close the Indian mints and alb
andon silver-in word, to attempt to
bring India to the gold standard, only
when it seemed to them that there was
no hope for silver.
A commission was appointed to con
slider the subject, which reported to
the council in June, when unexpected
ly, and to the surprise of the world the
council suddenly passed the measure
closing the minis to free coinage and
fixing price in gold at which silver
would be received for taxes or ex-
change at the mints.
The distinct reason given for taking
this action was that the United States
was about to abandon silver by repeal
ing the Sherman act. In sheer despera-
ton, and yet without much hope of
success, the Indian council adopted the
drastic remedy of trying to force India
to the gold standard. The attempt has
proved, as we have said, total failure
The teeming millions of India are
welded to the use of silver and will not
have gold. The further decline of sill
has not only embarrassed the council
by enhancing exchange and making it
more diff1ult, but it has increased the
inflow of silver and increased prices of
commodities, making it more difficult
to collect the revenues.
The only thing calculated to inspire
hope in connection with the matter is
the possibility that disturbance of In
dian finances may force England to
the necessity of considering the wis
dom of the restoration of bimeta1lism.