Evening star. [volume] (Washington, D.C.) 1854-1972, 1897-11-05
WAITING FOR THE BOTTOM,
Why England is Concerned Over
Silver in India.


From the London Spectator.
In this country, owing to the long use
of a single standard, and some curious
quality in the people which we do not quite
understand, but which keeps them free of
currency craZes, we could sand alooc from
the whole question if we pleased were il
not for India; but then, Indian finance is
very serious matter. The Indian gov
eminent Is living on debased coin-tnat is,
on a coin which has as a coin one value
and as an article of commerce another
That is a very dangerous position indeed,
because if it ever comes to an end, and it
Is sure to come to IN end some day, the
government will De .unaole to pay it's way,
and India for some years. instead of being
a self-supportinS dependency, will be q
cruelty costly one. We can put the matter
straight slowly either by increasing indi-
rect taxation-say on tobacco and sugar
or by a complete change in the method IF
government. now excessively costly; but
in the interim the British taxpayer would
have to supply the Indian defici. that is.
practically to give to lend the money
wanted for the nome charges. Those who
see this grow extremely anxious espe-
cially as the Indian expenditure is Just now
abnormally heavy, and as many Of them
are bimetallists, their fears tend to keer
up the agitation and consequently the dis
trust felt by all commercial classes in the
future of Indian trade The situation is, in
fact, a bad, because al uncertain one; and
though We do not know that there is any
remedy possible except waiting, for we can
not believe it practicable to establish a
single gold standard in In1ia and treat
the rupee as a mere token as we trea
our own shilling, still on one point we are
heartily with the cabinet and the bankers
who last week memorialized it.
Let us do nothing till we know a little
more. 1t is most dangerous thing to
touch the currency Of an empire ar ALL
but to touch 1t when the experts are unde-
cided, when nobody sees with l.ecfect clear
ness the whole of me problem and while
we can get along without touching it. is
midsummer madness. We quite see the
danger which fresh developments may in
volve-this writer believes that 1t may in
India be very serious indeed but the
danger Is less than the danger of acting
rashly upon imperfect knowledge. The In
dian plan of shutting the nlin.s and SO
making coin scarce, Is in theory irdefen-
sible and In practice q monstrous cppres-
sion on all who have hoarde1 silver; but
necessity of tho situation. The Indian
government is loaded with troubles as it
is: it is controlled for:the moment nv men
Of only average ability, and to compel it to
tackle another huge problem Just when it
Is at its wits end with one misfortune or
another would be most unjust as well as
short-sighted proceeding. Let us wait
great deal will be cleared up when we know
the bottom price of silvsr-that is. the
price at which sit can be profitably ex-
tracted from the earth-and we 10 not
know even thatf yeEe There are people
who believe thatit must always pay to ex-
tract metal worth E,OOO a ton, and that
ounce its extraction would continue to 60
on. - Es