Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-10-07
Foily of tho FIRES Coinage Proposition.

WILMINGTON, THURSDAY, OCT. q.
EaiIy of the Fres Coinage Proposition.
In recent ISSUE of the London |
Times, Lord Farrer writes at length |
and in a most effective manner upon
the question Of free silver coinage, as
raised by the proposition 10 reopen the
mints of India to silver coinage. These !
minis, it is known. were closed, on
scco0nt Of the great depreciation of the
rupee, the standard silver coin of India,
by reason Of the very material fall in
the metal price of silver. The presumed
value of the rupee, On ratio of l51a to
/ with gold, was Is. 4d., but the actual
value of the coin fell far below that
mark. Since the closing Of the mintR
there has been reaction, and the coin
value of the rupee is slowly advancing.
Lord Farrer cites the trouble caused
the Indian government by the depre-
citation OF the rupee, in which coin all
revenues are received. The consequence
was that the government required
larger number of rupees to pay debt
than formerly, as when it used to re-
quire LOCO rupees to pay debt of
g100. it later had TO procure ], 500 or
LOCO rupees to enable it to do SO. Under
such circumstances, he shows, this gov
eminent must either contract the sphere
of the work it does for its subjects. or
it must raise additional revenue by in
creased taxation.
One strong point made by Lord Far
rer is with respect to the conclusions
of the investigating committee upon
whose recommendation tho minis were
closed to tho coinage of silver. 1t APP
peared to that committee that ''the
time had arrived, when it had become
desirable, even at the risk of tampering
with the currency, to counteraet the
fall which had taken place in the value
Of silver, by raising the value OF the
rupee; and for this purpose the mints
were closed, with the provision that
when, by failure of a new supply of
coin, the value of the rupee had risen
TO Ia. 4d., the mints should be reopened
for the coinage of rupees to anyone who
would pay that price in gold for them. :"
Here is free coinage proposition in
which there is some sound sense. II
would be based upon an actual ratio Of
l51a to l at the time of the coinage,
and could we'll be continued as long %
that ratio was maintained. But the
proposition to establish FREQ coinage at
the existing metal ratio of nearly 40 to
/, in the hope that such free coinage
would raise the ratio TO l5I2 or 1G to J.,
ia rank folly.
Lord Farrer treats upon what would
probably be the evil effect of such a
speculative effort to raise the price of
silver. He says: "If it becomes known
that, SO far as law and international
agreement can operate, the gold value
of silver is to be more than doubled, ana
that gold debt will be dischargeahle
with less than half the silver now
necessary for that purpose; still more,
il it is open to the gravest doubt
whether this artificial gold value oil
silver can possibly be maintained il
the future, the effect may be TO create
panic and to cause iun on gold. fl
such case gold would be boarded o.
exported, aH it has been lately in thu
United States, only to much create
extent, and the effect of such a pani
would be to drive up the silver price O
gold and to drive down the gold price O
silver"
The probability OF such a move 70
free coinage creating larger demand
for silver is also discussed by Lor,
Farrer, particularly with respect to th
United States. at is notorious" b
says, that in that country the circula
tion is already too large rather than to
small. Will the mere opening of he
mints to silver create such an additions
demand for currency as to absorb tn
surplus silver OF the world and raise il
market value more than one half? VIVA
will be the economical motive whic
will produce such an effect? 1t is true
no doubt, that SO long as there is COL
in the Golfers Of tho United State
Treasury, and 60 long as gold is wort
more than l51a to l Of silver. silve
will oe taken by its possessors TO th
United States minis 10 10 coined, an
gold will be taken in exchange at th
mint ratio to be either boarded or 9,
ported 10 countries where it stands 1
higher ratio. But this operation ca
only last as long as the United STATE
Treasury has gold to part with and {
long as the operation lasta it woul
show. ipso facto, that the ratio Of 10
was not maintained. "
In conclusion, Lord Farrer says: "N
are deeply interested in the Unite
States, and every mistake that COUNT
makes, whilst it may benefit US MS con
mercial rivals, Injuries US far more
friendly dealers and customers. VIII
she needs above all things is the r
etoration OF sound system Of currenc
and this she will not get while ii
ignis fatuus of international him
tallism disttacts the attention Of b
rulers. The sooner We can helm to /,
that phantom tho better for both cou
tries. - ....
In the same issue of tho Times a
pears letter from MIR. W. Ii. Hould
worth, in opposition to the prupositio
advanced by Lord farrer, in tho ope
ing paragraph Of which the writer say
is 1t not rather late ia the day +
Lord Farrer and his friends to ohio
TO tho mint nrppnsnIs Of A., H.