The herald., 1897-10-19
"INDIA'S CASE FOR SILVER"

One Of the most significant and i'm
portant contributions to the literature of
the silver question is an article appear
ing in the October number Of the North
American Review. entitled. "India's
Case for Silver" by A. S. Ghosh, profess
sor of economics in Calcutta university.
It places the financial condition of India
in startling light and fastens upon the
British government responsibility
scarcely less than that incurred through
the famine.
The closing Of the India mints, Profess
sor Ghosh says was not the act of the
Indian people or even Of the Indian gov
ernment, but Of the home authorities in
England. For the last twenty years the
depreciation of silver had entailed upon
the Indian government continuous loss
in remitting the home charges. which
varied from $50, 200, 900 to 800, ,000, 900 per
annum. Every makeshift to which an
embarrassed government could resort
had been tried without avail. The In
dian government, about the time of the
Brussels conference, implored the home
government to permit it to enter into
some arrangement with the United
States but England remained deaf to
the cry. 1t was said that the cry for sii-
yer was but the cry Of the American
mine notwithstanding the fact
that the British empire contained more
silver than the capitalized value of all
American silver mines, because there
were in India boards of silver amounting
to !, 300 000, 900 ounces. In consequence
the home authorities compelled the
mints to close as an alternative. ut was
one more sacrifice to the golden calf Of
Englands monometallism."
1t has been the custom Of the peopls
of India to hoard their savings in silver
in the form of ornaments, bracelets,
bangles, etc. So long as the mints were
open they could exchange these orna-
ments for full value by weight for ru-
pees, the changer deducting small
commission for the service. After the
mints were closed the Indians found that
what they looked upon as legal tender
money was no more than commodity.
Here we have practical illustration Of
what it means to cut the purchasing
power of currency system in halves.
The closing of the mints and the conse-
quent fall in silver has made total loss
to the people of India Of about so per cent
Of their savings.
In remitting the home charges the In
dian government loses every year sum
varying from 100, 100000 to 150,000,000 ru
pees, according to the amount of those
charges and the current rate of ex-
change as compared with the former
value of shillings per rupee. 1t has
thus lost during the past three years, or
since the mints were closed, fully 392,-
600, 900 rupees. This amount would be
saved to the home government if the ru-
pee stood at par The salaries of the
$4,000 British troops stationed in India
are paid in pounds sterling and not in
rupees All British employees of the In
dian government, whether civil or mill
tary, whose salaries are reckoned in ru-
pees, receive a compensation from the
government for any fall in exchange be-
low Is Cd. Consequently the total loss
in India, apart from the home charges,
is about 21,0O0,O00 rupees per annum.
This amount would of course be saved
with the rupee at par. But the taxpay-
he.
cut in half by the closing Of the mints
pay the bill.
Some are inclined to argue that not
withstandirg the present heavy burden
upon the taxpayers of India, the depre-
citation of silver is really an advantage
of the country, inasmuch as it helps to
develop her infant industries by acting
as a protection. But the chief indus
tries are agricultural and are not bene-
fitted. Even granting the argument of
protection to be sound in itself it cannot
be applied to India, which, as depend
ency, has to meet heavy tributary
burden in the shape of home charges.
Professor Ghosh says that the famine
is worse now than 1t ever was before.
There is general disaffection In India.
bursting forth here and there into open
hostility. The time is fast coming when
the natives will realize that the closing
of the mints has brought poverty and
misfortune to them; that the govern
ment, while protesting to help them,
6eo ft,,er xx-it1
edge half their wealth. They will soon
take UP the question.
In conclusion Professor Ghosh saws
that it is to the interest Of England to