The times. [volume] (Richmond, Va.) 1890-1903, 1896-07-23
midas TRfAL OF FREE SILVER.
striking Illustration Of the Evils of C"'-
rency Based on Deprcciating Metal.

WASHINGTON. July 20.-The history OF
the free coinage OF silver in British lndia
affords striking illustration OF the
evils OF depreciating silver basis IN a
country having relations with cNlilzeu
gold-standard nations.
1t has been pcrsistently represented py
the silver men that the suspension OF
free coinage in India was part Ct
the British policy OF increasing the burden
OF debts due to England and destroying
debtor countries. ihe fact is just the
opposite. The obligations Of the In
dian Government were settled I'm gold in
London. while British Ia1a Mas on
silver basis I'm just the same way that
they have been settled since free coin
age was suspended.
II was the complaint of the officials
and the people OF India which led TO "A
change OF the standard. with the object
OF enhancing the value of silver and
making exchange with foreign countries
more favorable. The result has been
strikingiy in favor OF the policy rec
commended by the Indian Currency Com
mittee. made up OF bimetallists as well
as gold men. who investigated the con-
dition OF the Indian currency under the
orders of the London Foreign Office.
The problem set for the committee was
the rather difficult one Of establishing a
steady parity OF exchange. in spite OF the
fall I'm the price OF silver. without actual
provision for "A new gold coinage. The
first proposition was TO fix the value of
a silver rupee at sixteen pence-about
thirty-two cents in gold-athough the
bullion value Of the silver was far below
this amount. The attempt did not en-
t,relv succeed I'm the beginning and
the Government OF British India was COM
PEELED to sell bills In London payable in
silver rupees in India, for what they
would bring. The quotation Of the rupee
was gradually forced upward from 1852
pence in April. 1894. 10 H-3'J pence in
March. 1896. until within the last few
weeks it has approached the limit of
sixteen pence. originally proposed as the
new parity Of exchange.
The meaning Of these quotations Is that
an arbitrary value was gwen 10 the exist
ing silver coins of India by limiting the
supply. This was just the policy adopted
by the United States with the repeal OF
the Sherman law in 1893.
The policy OF the British Government
AZ home. so far rom adding TO the
burdens OF the people Of India, was di-
rected 10 increasing the value or their
silver money. This was accomplished.
not 10y the arbitrary declaration that
silver rupee was worth tweniy-iour
pence I'm gold because II was received
for that amount at the mint-a theory
which had absolutely failed i'm practice
but by suspcnding the coinage OF sill
yer and giving it a fXed parity, based
upon the credit Of the Government and
the demand for silver rupees tor legiti-
mate monetary uses. The result was so
striking that the price Of the rupee I'M
March. 1895. was twenty-eight per cent.
above the intrinsic value Of the silver
contained m the rupee. and the price
NJ present IS even higher
The example OF India is a strong proof
that the keeping OF the minis open TO
free coinage does not counteract the
operation OF natural law in depressing
the price of silver. India was Tor many
years as large a taker OF silver as the
United states could be expected. 10 be
under free coinage. The net Imports Of
silver into India in the twenty-three
years from lS70-1 10 1928 We're l65 226,
000 tens OF rupees-an average Of 1,lNi,OgG
tens OF rupees-about $4,000 O0O-annual-
~.
This absorbed nearly one-third Of the
silver production Of the world. and In
dian statesmen might have been pardon
ed for the belief that their country was
great enough 10 raise silver 10 parity with
gold without waiting for any other ma
| ton. The fact proved otherwise, AMI
silver pursued the steadily descending
scale which. according 10 the arguments
| Of many believers IN free coinage ought
! 20 nave made her great exporting
country IN con pet.tiOn with the coun-
tries in the convuisive grip OF the gold
standard" The Indian Currency Com
| mittec investigated this subject. and did
not ind that depreciating standard W IS
of any benefit 10 Indian con merce.
| The committee punctured the air bal
| loon OF the silver men-tnat prices had
not risen in silver In siow-going lnuia.
| while silver had been falling in value in
it's relation TO gold. IL said upon this
point:
Down n n comparatively late date IL
was generally believed that. notwitn-
standing "a fan in the gold value of sill
yer. prices IN India had been practically
| unaltercd. but the evidence before us
! points 10 the conclusion that during re-
cent years the silver price Of Indian pro-
duce has risen. IT, as experience shows.
wages respond moro slowly 10 the altera-
ton I'm the value OF the standard. this
rise in the price Of produce must have
been prciudiclal TO the wage-earnine
classes"
The committee fusthor pointed out
that India as am entity. and therefore
| the people of India had suffered a loss
! running up into millions Of rupo be-
cause of the importation OF unnecessary
MASSES OF silver fo- offer at her open
mints. while the price has been steadily
! falling New York Herald