The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-23
ALL PROPOSALS REJECTED
ACTION BASED ON ATTITUDE OF THE
INDIAN GOVERNMENT,
Which Is Strongly Opposed to Open
ing the Mints-What France Is WILL
ing to Concede to Silver.

| evening. Inc following account OF the ne
| gotiations is taken from the official pub
| lication: At the conference held at the For
eign Office on July u the premier, the
| Marquis of Salisbury the secretary Of
state for India, Lord George Hamilton; the
chancellor of the exchequer, Sir Michael
Eicks-B Beach, the first lord Of the treasury
Mr.. A. j. Balfour; the United States am
| bassador, Col. john Hay and the United
| States monetary commissioners, Senator
| Edward o. Wolcott, of Colorado, ex-Vice
| President Adlai E. Stevenson, of Illinois,
| and Gen. Charles Jackson Paineh of Massa-
| chusetts, were present
| On the invitation of the British premier
| Senator Wolcott explained that the object
| of the mission was to ascertain, in advance
| OF an international conference, the views
| of the governments, and the ENJOYS had
| determined to ascertain the views of the
| French, British and German governments
| on the question of reaching an information
| al bimetallic agreement. They had been to
| France, where they reached complete
| and satisfactory understanding with the
| French government and the ENJOYS would
| have the cooperation in this matter of the
| French ambassador in London. The sena-
| tor then explained that the success of the
/ mission depended on the attitude Great
Britain would take, and he requested Great
Britain to agree to open the English mints
as its contribution to the attempt to restore
| international bimetallism with France and
the United States, cooperating together in
an attempt to that end.
The Marquis of Salisbury asked if France
was ready to open her mints to free COIN
age, and Senator Wocott replied yes"
The premier thereupon inquired at what
ratio France would open her mints. Sena-
tor Wolcott said at 1512, adding that the
American ENJOYS had accepted this ratio
WOLCOTTS PROPOSITIONS.
The senator then presented the following
list of contributions, which, among Others
! he suggested Great Britain might make:
| First-The opening of the Indian mints
and the repeal Of the order making the
| sovereign legal tender in India.
Second-Placing one-fifth of the bullion
in the issue department of the Bank Of
| England in silver
| Ihird-Raising the legal-tender limit of
silver to, say 41O, and issuing 20-shilling
! notes based on silver which shall be legal
tender, and the retirement, in graduation
| or otherwise, of the 10-shilling gold pieces
| silver.
Fourth-An agreement to coin annually
so much silver, the amount to be left open
tfth-Ihe opening of the English mints
TO tne coinage OF rupees and the coinage of
O4Alioll dOildISs WHICH small De IulI lender
| IN the Straits Settlements and other silver
standard colonies, and tender in the United
hlngdom to the limit of silver legal tender
| SlXth-Colonial action and the coinage of
! silver in Egypt
Notwithstanding having the general
scope of the Huskisson plan.
The meeting then closed and it was un-
derstood by the parties that The absence of
| the French ambassador, Baron De CourceI,
4 from the proceedings should he regarded as
| informal, and a second conference was held
| on the 18TH at which, in addition to those
| already mentioned, the French ambassador
ana M. GeoHrey, the counselor of the
| French embassy, were present The French
| ambassador was invited to declare the posi-
| ton OF the French government, snd he said
france was ready to reopen her mints to
| the coinage of silver If the commercial ma
| tions adopted the same course, and he ad-
| vocated at great length the ratio of 15la
| But. he explained, France would not con-
| slider the reopening of rnints CT India alone
| as being sufficient guarantee TO permit the
| French government to reopen the French
mintS to the free coinage of silver
Sir Michael Hicks Beach then announced
| definitely that Great Britain would not
| agree to open the English mints to the un-
| limited coinage of silver, and that whatever
| views he and his colleagues might separate
| ly hold regarding bimetallism, he could say
| that they were united on this point.
Baron De Courcel said as a personal sug-
| gestion that, among other contributions, he
| thought Great Britain should open the IN
| dian mints and also agree to purchase an
| nually e1000O0O0 sterling of silver for a
| series of years.
| O6IldlOF WOlCOlJ dCC6pLtu tH6 proposal
| that the British government should make
| this purchase with proper safeguards and
| provisions as to the place and manner of its
| use.
INDIA's REFUSAL
| Since this conference the British govern
ment has been considering the proposals,
and finally made the reply handed to the
| United States ambassador and cabled yes
| terday. The reply of the government of
India. upon which Lord Salisbury based his
decision, is a long document, giving an en-
phatic negative to the proposal TO reopen the
India mints. 1t says:
| The first result of the suggested meas
| ures, If they were to succeed eN en- tenn
! porarily in their object would be an intense
/ disturbance of Indian trade and industry
| There would be a sudden rise in exchange
| which, If the ratio of 1872 10 l were adopted
| would be TO about twenry-three pence the
| rupee. Such a rise would be enough to kill
| our export trade for a time at least unless
| the public were convinced that the arrange
| ment would be permanent and have the
| effect intended.
The paralysis of trade and Industry
| would be prolonged and would be accom-
| panied by acute individual suffering. None
| or the advantages expected would be at
| tanned, and the country would pass through
a critical period which would retard its
| progress for years The position would be
! disastrous alike to the state, to individuals
| and to trade generally. The exchange value
! of the rupee having risen suddenly would
| fall equally suddenly to point far lower
| than the present level, probably to nine
! pence and even lower. Such a fall, apart
| from other disastrous results would
necessitate additional taxation to the
amount Of many crores."
The reply then proceeds to point out that
| the proposed agreement would be q much
more serious question for India than for the
| United States and France as the whole risk
| of disaster from failure would fall upon
| India If the agreement broke down the
| United States and France could take pre-
cautions against a depletion of their gold
reserves; but in India. the rupee. when the
collapse came would fall headlong and the
| government would have no remedy against
| fluctuation IA the exchange of value of IN
dia's standard of value with the fiuctua-
tions in the price of silver. For" con-
tinues the reply. "if the Indian mints are
reopened to silver now it will be practically
impossible for the government ever to close
them, and if II were possible it would be
only after very large additions had been
made 10 the amount of silver in circula-
ton"
After noting that "the effect OF the adop-
tion of the scheme would probably be an in
crease in price in France and the United
States. but a decrease in india" a change
which France and the United States would
contemplate with equanimity, but which
would be manifestly impossible TO india"