The times., 1897-07-11
BIMETALLISM AND INDIA.
To the Editor of The Times:


economist OF reputation, who VIII not
say that the readest available means to
aIlay irritation and distress in India is to
reopen the Indian mints TO the free coinage
OF silver. Silver demonetization is the
basic cause of the woes under which the
subject people OF that vast empire OF 3OO,-
o00,000 souls are suffering. What IS
more, they thoroughly understand and
appreciate the fact"
VIII you be SO kind as to explain in your
columns In what respect India is worse
off than she was In 1894, when the free
coinage of silver was suspended or ter
minated? Her exports and imports have
certainly increased, showing larger pro-
dGction and greater ability TO purchase
for consumption. Her agricultural and
manufacturing productions have greatly In
creased, and the tonnage OF her shipping,
foreign and domestic, has grown IN SUN
greater ratio. Her imports OF gold have
nearly trebled, while her exports OF gold
reach but little over half those Of 1898.
IL is true that the bGbonic plague has
since prevailed in one of the provinces or
India; but had not thought OF attTibutiDg
this visitation to the suspension Of silver
coinage in 1893. Again, are you not con-
founding terms even To the point or dark
ening counsel when you speak OF this act
OF suspension as an act "denlonetizing'
silver? Silver is not demonetized in India.
II is still the currency OF the country; and,
most unfortunately for the people, it is sut-
stantially the only currency. In 1877 the
silver rupee was worth shiInngs, say
SO cents in gold. This rupee had been
ffu uEt
Parliament, but by the "Indian council"
possessing full legislative powers in that
behalf for India About this time silver
commenced its gradual decline. 1t con
tinued its depreciation until July, 1898,
when its intrinsic value was only halr
what IL had been sixteen years before.
During all this time India had defisntIy
maintained its legaItender laws, attempting
as we did in the United States to create
values by legislative dscree.
This conduct OF India brought great
injury to two parties. First; it brought al
most irreparable damage to herself; and,
second, it greatly impaired the export
trade OF the United States with Eng
land, our greatest customer.
The first damage TO herself Is that
Which comes 10 any coInmURiUy or natidn
which attempts 10 establish unreal and
fictitious currency values by legal tender
laws The better currency Is thereby Hec-
essarily driven out; and in this case
India's gold in the sixteen years had
gone Where II was properly appreciated
The second damage arose out OF the fact
that for sixteen years her people Tecei <ed
only partial pay for the products of their
labor Ii the people OF India during this
period could have demanded and received
gold for the products of their farms and
their looms. a better condition OF COM
fort and happiness would now prevail
among them.
BY allowing more for silver than other
nations, they got less in return for their
exports, until ttse silver panic Of 1893 dis-
closed the startling fact that the returns
from the skill and pat lent labor OF a great
nation for half LIFETIME had host more
than half their value. n all this there
was nothing new. II is but universal
expeTience-experie ienoe condensed into 8
single sentence by Mr.. Hamilton when he
said, 1T is evident that as often as
country which overrates either Of the
metals receives q I-aymeHt in that metal,
IL gets less actual quantity than al ought
To do, or less than ii would Ii the rate
were a just one
The INJURY done to the United States
Consists ia the fact that the " heat and
other products OF India, IN consequences
OF her deprecated medium OF exchange,
Gould be purchased for less money than
similar products from AmeriCa England
pald India IL silver bullion, and the IN
dian merchant receiving it hoped to re-
imburSe himself by Coming this bullion
HEo rel''-S. and tlssn forcing Il, under legal
tender laws, upon the farmer and manu-
facturer at double its intrinsic value.
When the impoverished people came to
realize this startling fact, IN 1898, they
demanded that free coinage be stopped
They did not go TO Parliament The
English PaIllasneRt had nothing 81 do with
IL. Under the system OF government de-
yiscd for India, th4s power, with an other
municipal powers, was vested in council
chiefly Composetlof native Indians Action,
prompt and decisive, was necessary 70
save the nation from iTTetrievatle ruin
I rec Coinage had 10 be arrested To save
the country, nationally and individually.
from bankruptcy and degra datien.
What do you mean when yon say it is
necessary 10 reopen the Ilints'' of india
in order TO allay irritation and distress?''
When coinage was suspended in 1899 by
the people OF India themselves. silver was
worth about 20 cents to tlse oAHce. tits
now worth less than so cents. Whatever
the evils OF free coinage in 1893 might have
been, those evils would be greatly agra
waited by present conditions.
II is to be Implied from your editorial
that, in your opinion, England is opposed
TO free coinage in India II England is
willing 10 cast aside all sense Of justice to
the people Of a most vaIuable part or the
British empire; IL sl1efs willing to abandon
all pretensons TO honesty and good govern
ment and to enter upon the most selfish
and dsreputable schemes TO rob India for
the benefit OF England, then, and only then,
VIII the government encourage a renewal
of free coinage in India.
But 1 always fear the influence of self /
ish greed. Free coinage in the United
States would transfer untold millions
of American wealth to England She would
exact tell from every irausaCtiun English
statesmen are too adToit ever to ACCEPT
free coinage for themselves But To our
rowing free silver commission the tempta-
tions of self interest, il seems, have sug-
gested that while England was not yet
prepared to accept, she might possibly
use her best offices to induce India to
join the United States in this astounding
scheme OF self-destruction.
Yes, England buys of our products every
year nearly $500, zoe eco more than we
buy of hers. IL she can pay MS for this
surplus of $4,000 eco in silver, now
SupE tn a. rents ~ Tho .l,1lar a,,7 I'm
declining, we eught not 10 lie surprised If
her merchants should consent TO accept
the profits growing out of orr stupidity