Omaha daily bee., 1897-09-25
GOLD STANDARD FOR INDIA
Lord Farrer Writes to the Times on the
Subject,
DISCUSSES THE QUESTION AT LENGTH
Argues that Opening the Mints Will
Not DO what is Wanted and
Safety Lies I'm the
other Extreme.

LONDON, Sept 24.-Lord Farrer has a
three column letter in the Times this morn
ing on bimetallism and the Indian mints.
He says I'm my opinion the ultimate solu-
tion of the question will be the adoption Of
the gold standard in India"
Lord Farrer then proceeds to discuss the
proposals of the American commission and
the Frerch government of which he says:
There has been no official statement of
Senator Wolcotts proposals, but we may
form shrewd guess from an article which
appeared in the National Review for Au-
gust, entitled Episodes of the Month"; and
written by some one who appears to be in
the councils of the American negotiators.
From this we understand that India is In
vited to open her mints at ratio of 15lh
to l. This ratio would mean that the
present gold value of silver would have to
be increased by l25 per cent"
Lord Farrer sketches the position of cur
rency in the United States and France, from
which he concludes there is every reason
to believe in the present circumstances that
neither the United States nor France, nor
both united, could possibly by opening the
mints create such demand for silver as
to maintain its value at the ratio of 15R
to /.
The letter continues: Experience has
shown that the opening of Indian mints would
not create the necessary demand. Indeed,
circumstances would be less favorable there.
as the opening of the French and American
mints would create a competition which
would not only prevent silver from howing
to India but would attract silver from
India, causing an export to Europe. There
in another risk. 1t is highly improbable that
any diplomatic or legislative arrangements
could reverse the tendency of the world Tor
the past 200 years to make gold the stand
ard of value. The English people adopted
it in spite of the government. 1t is much
more likely that the American bankers and
! merchants will arrange to have their deal
ings on a gold basis and thus evade the
law which gives silver an artificial gold
value. 1t is almost certain this will oc-
cur in case of international dealings, and 1t
is likely to occur in dealings at home and
abroad. Supposng the proposal succeed, its
effect would be so felt in all parts of the
British empire and gold standard coun-
tries that the standard of values would be
altered enabling debtors to discharge gold
at the rate of 15l2 to i, because any one
could take silver to the French and Ameri-
can mints and get it coined into francs and
dollars which, when a stable exchange is
secured, would be worth in the markets of
the world. including London, one-ffteenth
and a half of their weight in gold. 1t would
enable the United States or the French gov
ernment, supposing them to owe debts
abroad to use the enormous stocks of sill
yer they possess In paying these debts, with
less than half the silver with which they could
pay them. Such a change would be good
for neither India nor any other country
which values common honesty. Such a
change would be most injurious to Great
Britain and the British empire, and yet
this revolutionary change would be effected
by the aid and full concurrence of our own
government. It is impossible to believe
that the government will take such step.
Enough has been said to show that the
proposal Is impracticable and undesirable If
practicable For the sake of India and the
empire it ought to be rejected summarily.
But there is another reason for rejecting 1t
summarily. We are deeply interested in the
welfare of the United States. Every mis-
| take that county makes, while it may benefit
us as a commercial rival, Injuries us far more
| as friendly dealers and customers. What
she needs above all is a restoration of a
sound system of currency and this she will
| not get while the "ignus fatuus' of inter-
national bimetallism distracts the attention
| of her rulers. The sooner we can slay that
| phantom the better for all
The Times says editorially this morning:
I'VE do not suppose, in view of the en-
phatio remonstrance of the London bankers,
| that there will be any desire to go further
even in a speculative way with a policy
We must deprecate in the most emphatic
way any attempt to bring political influence
| to bear in any way on the administrative
| policy of the bank"
In concluding the Times says: 1T is diff
cult to resist the force of Lord Farrer's argu-
ment. An international arrangement to raise
silver to the artificial value contemplated
| would be n revolutionary measure, accom-
| plished probably without the consent of leg
| islature, which would carry with it the great
est consequence to British finance and com
|