The Saint Paul globe., 1897-10-23


proposals and finally made the reply
handed the United States ambassador
yesterday.
The reply of the government of In
dia, upon which Lord Salisbury based
his decision, is long document, CIV
ing an emphatic negative to the pro-
posal to reopen the India mints. 1t
says: The first result of the sug
gested measures, if they were to sue
would be an intense disturbance Of
Indian trade and industry. There
would be a sudden rise in exchange,
which, if the ratio of 15h to 1 were
adopted, would be to about pence
the rupee. Such a rise would be
enough to kill our export trade for
time, at least, unless the public were
convinced that the arrangement would
be permanent and have the effect in
tended"
RISK OF DISASTER.
The reply then proceeds to point out
that the proposed agreement would be
a much more serious question for India
than for the United States and France,
as the whole risk of disaster from the
failure would fall upon India. If the
agreement broke down, the United
States and France could take precau-
tions against 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 f1uctuation in the eX-
change value of India's standard OF
value with the fluctuations in the price
of silver.
For continues 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 it were possible it would be only
after very large additions had been
made to the amount of silver in cir
culation.'
adoption of the scheme would prob
ably be an increase in prices in France
and the United States, but decrease
in India" an exchange which the Unit
ed States and France would contem-
plate with equanimity, but which
would be impossible to india" the re-
ply suggests that the United States is
doubtless partly inspired in making it's
proposals by a fear of experiencing
some difficulties and dangers which
India has already surmounted after
years of embarrassment"
Then follows the opinion that India
is on the point of securing a stable
exchange of 16 pence per rupee and 1t
would be exceedingly foolish to throw
away the position already attained by
an acceptance of proposals which, if
they failed of their intended object,
would place India permanently under
the silver standard with all it's ad-
mitted disadvantages.
The reply proceeds various reasons
why the experiment would not succeed.
First-France ard the United States seeing
the prospect of total disappearance OF gold
coinage before the price of silver has been
raised to the intended ratio might take meas
ures to prevent the export OF gold
Seeond-Either country might he reduced
to paper currency, in which case the agree
ment would cease to operate
THREE SIDED AGREEMENT.
Third-A three-sided agreement would be
open to greater risk of termination oy one
or two parties than many-sided 1nterna-
tional agreement, besides which, either france
or the United States might some day think
some other nation benetting at its expense,
and this would lead to discussions as to the
expediency as to the termination OF the agree
ment. only less serious than an actual ter
mination.
For these reasons alone Without
considering objections to the particular
ratio proposed, we do not hesitate,
continue the authors, of the reply, TO
recommend that your lordshlps refuse
to give the undertaking desired. we
shall be willing to consider what effect
the cooperation of any other nations,
if secured, may have on the problems;
but we believe that our best policy is
to link ourselves to Great Britain"
In conclusion, the official dispatch
intimates that the present proposals
might have been favorably considered
in 1892 but, 1.-The experience of the last
few years has made the position very
different It also notes that the con-
ditions under which we have had to
reply to your lordships dispatch pre-
clude our consulting with the CONNER
cial and banking communities OF In
dia," but "even had another reply been
possible, it could only have been after
the fullest preliminary consideration
by our banking and commercial
bodies"
The dispatch is signed by Lord Elgin,
the viceroy of India; Sir George Stew
art White, commander-in-chie of the
British forces in India, and eXtraordi-
nary member of the council of the gov