Rock Island Argus., 1897-10-23

ernment mas been CONSIDERING the mo-
posals and finally made the reply handed
the United States ambassador Wednes.
day.
The reply Of the government of India
upon which Lord Salisbury based his
decision Ii q long document, etvins
an emphatic negative to the proposal to
reopen the India mints. It says: The
first result Of the suggested measures.
II they were to succeed even Temporarily
in their object. would be an intense dis.
turbance OF India trade and industry.
There would be q sudden rise in ex.
change which. II the ratio Of 15k to 4
were adopteU, would be about 8 pence
the rupee. Such q raise would be
enough to kill our export trade for q
time. at least. unless the public were
convinced that the arrangement would
be permanent and have the effect in
tended
The paralysis Of trade ana Industry
would be prolonged and would be ac.
companied by acute Individual suffering.
None Of the advantages expected would
through a critical period which would
retard its progress for years. The posi-
tion would be disastrous alike to the
state, to individuals and to trade gener-
ally. The exchange value of the repee.
having risen suddenly. would fall equal
ly suddenly to point far lower than the
present level probably pence. and even
lower. Such a fall, apart from other
disastrous results, would necessitate ad.
ditional taxation to the amount Of many
crores-" IA ''crore" is 100000 unitsI
BURDEN WOULD REST ON INDIA.
Intimation That Uncle Sam and Johnny
Crapaud Have "Put Up a job"
The reply points out that the pro-
posed agreement would be a much
more serious question for India than
for the United States and France, as
the whole risk Of disaster from failure
would fall upon India. THE effect of
the adoption OF the scheme would prob
ably be an increase In prices in France
and the United States, but a decrease
in India" a change which France and
the United States would contemplate
with eQuanimity. but which would be
manifestly impossible to India
Then follows the opinion that India is
on the point Of securing q stable ex-
change OF 10 pence per rupee, and it
would be exceedingly foolish to throw
away the position already attained by
an acceptance Of proposals which. IL
they failed OF their intended object,
would place India permanently under
the silver silver standard with all its
admitted disadvantages Nothing but
assured success could Justify India in
Joining In the experiment; and our be-
lief is that the proposals will fail to
secure q permanent ratio OF 15h to 1.
We doubt whether any two or
three nations in the world, unless one
of them were Great Britain, could e.
tablish the required stability. II is GER
tain that France, the United States and
India could not"
The India government proceeds: I'VE
do not hesitate to recommend that your
lordship refuse to give the undertaking
desired. We believe that our
best policy is TO link ourselves to Great
Britain. The ratio Of 15k to 1 Is too
high. Differing SO widely from the ex-
istfng ratio. IL would immensely in
crease the difficulty. Indeed, IL it could
be secured and maintained successful
ly we should object to the ratio in the
interests Of India, and recommend your
loFdship on behalf Of India to decline to
participate in or to do anything to en-
courage the formation of a union based
thereon. We presume that q
union based upon q ratio low enough to
suit our interests would not be ac-
ceptable to France and the United
States"