The sun., 1897-07-19
nEornxne EHH IrDIA M1rrs.

Tho onvoye e0nt 70 Europe By President No
Kinley to negotiate an International bimetaliio
agreement have not yet made any official report
Of the results of their mission. and the news.
paper accounts Of their doings do not indicate
that they havo accomplished anything of sub
ntantial Importance. They have, indeed, been
everywhere received with distinguished cour.
tesy. They havo been presented to Queen Vic
toria, they havo had interviews with tho French
and tho British prime ministers, and they hnyo
been invited to q number OF receptions and ban.
quets, but In tho business In which thoy arc en-.
gagged they have apparently made no progrcss.
Great Britain will discuss propositions but
positively refuses to abandon the single gold
standard; Franco will do nothing without the
cooperation Of Great Britain. and Germany,
Austria, and Russia have not spoken at all,
Practically, tho whole matter stands just whore
It stood when the monetary conference of 1909
adjourned sine dte
Nevertheless the bimetallists of Europe and
the silv critics Of the United States are exultine
ever tho assurance, which has been given them
unofilcially, that, In case Franco and the United
States join In y compact for tho free coinage Of
both silver and gold. Great Britain will reopen
tho mints OF India TO tho free and unlimited
coinage Of silver. This concession. which hos
not yet bcen mado, and which, possibly, never
will bo mado, Is hailed AZ an important gain for
raise tho market price Of silver, and thus to
lessen tho disparity between silver and gold.
That this would be tho result Of the measure In
as doubtful as II Is doubtful whether tho meas
ure itself will be adopted. Indeed. the probability
is that tho FREQ and unlimited coinage Of silver
In India will no moro avail to raise the market
price Of the mctal now than It did to arrest tho
fall Of It during the twenty years that 1t pre-
vailed prior to 1898.
49, H.. - ~.
India mints is interpreted as o step calculated
to raise the market price OF silver is, that an in.
creased demand for the metal would thereby be
created, and that this demand acting upon
supply that cannot Immediately bo increased
will, according to q weilknown economic law
increase the exchange value Of tho metal. Tho
closing OF tho India mints to silver in 1893
caused. 1t is said, heavy drop in Its price and,
conversely, It ia asserted that reopening them
will have tho contrary effect Silver will DO
wanted in great quantities for coinage pur-
poses and the price OF 1t viii rise Just as 1t fell
when tho demand for those purposes was
stopped in 1893 by Government action.
The facts Of the case arc these: Tho bill for the
closing Of the India mnte to the unrestricted coin
age Of silver, to which they had been open since
1885, was passed by the India Legislative Coun-
oil on juno %, 1893. On that day tho price Of
standard silver In the London market was SO
pence per ounce. Tho next day, when the pas.
sage Of the bill was announced, silver fell in
London to 35 pence per ounce, on June ~ to 81
pence, on June 30 to 31k pence. and on juno
30 to 3oia pence. Thus. in four days after the
India mints were closed. silver lost In gold value
bla pence per ounce. At this rate the loss to the
holders Of silver the world over could be COM
puted only in MILLIONS of dollars, and the action
ofthe India Council was accordingly denounced
by British bimetallists q Wholesale spoliation.
With July, however. q reaction in the silver
market commenced, and on the FIRST day Of the
month tho price OF the metal in London rose tc
83ia pence per ounce. and on the 4th to 3ka,
pence. The rise was sustained throughout
July and August, the price fuctuating during
the two months between 81 pence and as pence
per ounce. Then came the cessation Of ouI
purchases of silver under the Sherman act
which for three years had amounted to 500.
600 ounces per month, and the price of silver
began to fall again, touching 91la pence In 90
tober and varying from 81 pence to 80 pence
during the remainder Of the year. Since 1895
the price has never been long above so pence
and is now about 27ls pence.
Upon India silver coin the closing OF the mints
had beneficial effect The rupee, which in
June, 1893, was worth between 14le pence and
10 pence. has since remained fixed at about that
value, and has at times been worth nearly 1e
pence. At the present moment 1t is worth very
nearly 10 pence although its bullion value II
only about IL pence. Like our silver coin. 1t 10
to certain extent, fat money; that is, 1t Il
limited In its amount and derives artificial
value from the Government stamp on 1t and
from the Government acceptance of II as money
With the reopening of the mints this artificia
value would of course disappear. Tho rupee
would be worth in tho market of the world, Al
the Mexican dollar is, only what 1t was worth
to melt up. Unless. therefore. the reopening o.
the mints raised tho price Of silver bullion, Il
would depreciate rupees and cause o great losl
to the holders of obligations payable in them.
Furthermore. unless the reopeninR of tho In
dia mints shall have the promised effect of rails
ing tho price of silver bullion. It will be disas
trous both TO India Government finance and Il
business transactions between India and gold
standard countries India is obliged to remit t.
London for the payment of it's quota Of i'm
perial expenses and for tho interest on Its ster
ling debt R16 000. 900, or $50, ,O00. .00O annually
The fall in the gold value of the rupee from
Bhilings to Its present level adds largely to thu
amount of rupeo revenue required to meet thes,
obligations, and II with the reoponinR OF tn,
mints the rupee should sink to IL pence Of
thereabouts, the burden upon India would b,
augmented by pence per rupee. Tho SAM
augmentation would take place In private obli
cations, and salaries paid In rupees would cor
respondingly lose their value.
AS has already been pointed out, tho argu
ment that reopening the India mints will rais'
the market prico Of silver proceeds upon the as
sumption that this reopeninR will be followet
by an increased demand for the metal ant
that the supply will not Immediately increase u
meet the demand. 1t 10 assumed. too. that sill
yer. as soon as 1t Is coined, Is consumed. Just a
It is when 1t is manufactured into tableware, o
as cotton Is consumed when 1t is woven init
cloth, or coal when 1t Ia burned undor boiler
Should either of these assumptions provo to b.
false, tho reopening of the mints OF India woult
be disastrous both to public and to private In
forests. For should the expected increased de
mand of the metal for coinage fail to occur, o
should 1t. II It occurred, fail to diminish IN
stock pressing upon tho market, the price o
silver would remain unaffected. and tho cur
rency of India, like that OF all other silver
standard countries. would remain liable to al
the fluctuations OF silver bullion.