Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-11-11

lrRue ana INDUSTRY, by the advance OF
the exchange value of the rupee, which
will be very intense II the rise ia from
between 10 and Is pence TO about %
pence. There is no doubt that tine
effect would be to throw some branches
Of the export trade OF India and the in.
dustriea connected Herewith tthe
planting industries, for example, in
which large amount of European CAPT
tai has been embarked) into the most
depressed condition for some time at
least. The period OF depression might
be long or comparatively short, though
there Rre authorities who are inclined
TO attribute permanently disastrous
effect to such large and sudden rise
IN exchange. and 10 apprehend that
Indian commerce might be utterly
shaken By the change.
In apy case, We are OF opinion that
the tru6interests of India demand that
any measures for attaining stability in
tho rate OF exchange between gold and
silver should lie, based upon rats not
greatly differing from led. the rupee,
and That any measure which would
rai6e the rupee materially higher than
that level involves great dangers, for
which We see no adequate nompensa-
we attach no special importance to the
advantages to be derived from the pro,
posed considerable rise in exchange,
mentioned in paragraph Of your dea-
patch, and consider them to lie far out,
weighed by the resulting evils.
Pressed as We have been for many
years by the difficulty OF finding the
continually increasing number Of rupees
requisite TO discharge our sterling
liabilities, we are apt to look too ex
| clusively at the effect which rise of
exchange would have in diminishing
| the burden of that demand upon US.
We do not deny that large surplus of
revenue will arise from 30 great an i'm
provenent in exchange; but it is not
to be forgotten that there are many re-
| anects in which our revenue account
must directly suffer by rise in the
exchange value of the rupae, and that
these considerations ought to greatly
influence our estimate OF the benefit 10
our revenue account which is almost
the solo advantage which, Al govern
ment, we can EXPECT to obtain from the
| proposed measures
The Anticipated fall in prices 10 one
| that will adversely affect both our
revenues and tho general condition of
the agricultural classes in the country.
10 take the case of our land ravenue, a
very large portion OF the country has
paesed under land revenue settlement
during the last 10 or 10 years. One Of
the factoIs in fixing the demand OF the
government for revenue is tho price
of agricultural produce; il that price
falls away, the heavier the demand be-
comes, and il it falls away materially,
the relation between the price that the
ryot can obtain for his produce and the
assessment he has to meet may be SO
seriously altered as to affect the agri-
cultural prosperity of large tracts OF
country. This work Of resettement is
tedious one; it cannot be effected in
all probability for some years, and
when it is effected it will pro tanto
iissipate much of the advantage which
the rise OF exchange would bring to
the government account.
So, also, as regards our railway reye-
nues, which are NOW so important a
portion of our income. They are in
part directly dependent upon the
activity OF the export trade, and a
blow struck at that trade will be felt
by US Immediately and directly through
our railway account.
For these reasons therefore, 10 ad
dition to those set forth in the earlier
portion Of this despatch, we recommend
that the reply to the request OF the
governments of France and the United
States should be in the negative We
presume that union based upon
ratio low enough te suit our interests
would be unacceptable to France and
the United States.
With reference to paragraph OF
your lordship's despatch, we invite
attention to the description of the
present currency system of India given
in paragraph abnye. There appears
to be sumo misapprehension in the
comparison drawn between the arrange.
ment proposed by the United States
and Francs and the present system
ia India. The present system is. Of
course, open to the objection that il il
one of artificial restriction, but it il
essential to bear in mind that it is moi
permanent system, or, indeed, sys
tenn at all. We are 10 transition
! period, moving from one system &c
another, and the present artificial re-
striction ia merely Temporary ex
! pedient which has for its sole OBJ ec
the aceeleration of the movement, anc
which will cease to exist at the com
, pletion of the movement. Thereafter
the expansion and contraction of tht
currency will be loft to tho natura
forces OF the market-that is. it vii
be regulated automatically by the in
flow and outflow of gold.
1t is true that the system win he
open TO tho other objection stated ir
. paragraph OF the despatch, that th,
, rupee will continue to remain at 6
value above its metallic value: but
! as was pointed out by Lord Herschell',
, mmlttee--this is an objection whict
has not made itself seriously felt ia tbs
other countries, including France ant
the United States. in which al
analogous system has been in operation
7 for many years. 1t is not likely tina
7 the objection will make itsalf seriousl,
felt in lndia when the gold STANDARD
has been effectively introduced.
} The question really ia not one o
! comparison. as put by your lordship
between the present temporary ex
pedient in India and the arrangement
3 proposed, but between gold STANDARD
. and the proposed Arrangement, which
! involves the abandonment OF the polio.
: Of gold standard, adopted 10 1885, ii
favor of raversion to the policy of
. silver standard.
In paragraph of the despatch you
lordehip reminds us that lin 1882 tn
! policy OF closing the rnints was onl
recommended" by Lord Lanadowne'
! government "on the ground that al
y international arrangement. similar I,
: that which is now contemplated. wa
not then obtainable,o and We are asRei
| I'm ~ IN n ans