Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1897-10-26
mad. to the amour, of silver in c,reu,a-
Motive of the United states.


After noting that 'the effect of the adop-
ton Of the scheme would probably be an
increase in prices in France and the United
States, but decrease in India u change
which France and the United States
would contemplate with equanimity, but
which would be manifestly impossible to
india" the reply suggests that the United
States is doubtless partly inspired in maxi
ing Its proposals by fear of experiencing
some difficulties and dangers which India
has already surmounted after years Of en-
barrassment.
Nothing but assured success could Jus
tify India in joining in the experiment, and
our belief is that the proposals will fail to
secure permanent ratio of fifteen and one
half to one One reason for this conclu-
sion Is that the arrangement would rest
on too narrow q basis The union OF two
countries. with third lending assistance.
Is very different thing from the inter-
national union OF a majority Of the impor-
tant countries of the world. advocated by
the Indian government In dispatches for
warded in March and June. 1892, and in
February and September, 1885. We doubt
WHISTLER any two or three nations IN the
world. unless one of them were Great
Britain, could establish the required sta
bility. 1t is certain that France, the United
States and India could not"
Why 1t Would Fail.
The reply then proceeds to discuss va
rious reasons why the experiment would
not succeed First, France and the United
States, seeing the prospect of a total dis
appearance Of gold coinage before the price
Of silver has been raised to the intended ra
ito, might take measures to prevent the ex-
port of gold: second. either country might
be reduced to paper currency, IN which
case the agreement would cease to operate;
third, a three-sided agreement would be
open to greater risk Of termination by one
or two parties than many-sided interna-
'tional agreement, besides which, either
France or the United States might some
day think some other nation benef1ting
at its expense, and this would lead to dis
cussions as to the expediency Of the ter
mination OF the agreement, discussions
only less serious than actual termination.
Refusal Recommended.
For these reasons alone, without con-
sidering objections to the particular ratio
proposed, we do not hesitate" continue the
authors Of the reply. ITO recommend that
your lordship refuse to give the undertake
ing desired. We shall be willing to consider
what effect the cooperation OF any other
| nations. II secured, may have on the prob
lens, but we believe that our best policy
Is to link ourselves to Great Britain"
Ratio Too High.
They then proceed to argue that the ratio
Of fifteen and one-half to one is too high
Differing so widely from the existing ratio
1t would immensely increase the difficulty
| Indeed, If it could be secured and main
tanned, we would object to the ratio in the
interests Of India. and we recommend your
lordship, on behalf Of India, to decline to
participate in. or to do anything to en-.
courage the formation of a union based
| thereon. AS we have already pointed out
| the sudden rise in the exchange value OF
the rupee would be SO disastrous to Indiar
industries, especially planting, in which
European capital is largely embarked, that
L 10 mt he frrNa int TO ofT Ind 10
demand that any measures to attain sta
bility of exchange for gold and silver should
| be based upon ratio not greatly differing
from 18 pence the rupee. Any advantage!
from considerable rise in exchange woule
be far outweighed by the resulting evils
Having discussed the probable effect II
various directions upon midas local inter
ests, the dispatch recommends reply II
the negative, adding: 1--WE presume that
union based upon ratio low enough to sui
our interests would not be acceptable t.
France and the United States" In conclu
present proposals might have been favor
ably considered In 1892 but "the experience
OF the last few years has made the position
very different" 1t also notes that 9TH
conditions under which we have had to re
ply to your lordships dispatch preclud
our consulting with the commercial an
banking communities Of India" but "eve
had another reply been possible It coul
only have been after the fullest preliminar
consideration by our banking and CONNER
cial bodies" :
The dispatch is signed by Lord Elgir
the viceroy Of India; Sir George stewar
White, commander in chief Of the BIRTHS
forces in India and extraordinary membe
of the council Of the governor-general,a an
by the following members of the council
Sir James Westland Financial member {
, the counciD, Sir John WOODBURY., majc
general; Sir r. H. Collin, Hon. Mackensi
Dalzell Chalmers and Hon. A. c. Trevo
The correspondence concludes with Lor
, Salisburys dispatch to Ambassador Ha!
the contents of which have already bee
| La