The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1898-04-02

| 4 per cent interest, while IN Bombay
according to the Times of India, not
even "a per cent will bring out an
advance upon the most solid of snc
urity"
1t is agreed even by English gov
ernment authorities, that there must
be a change in India financial sys-
TEN. What that change shall be ap-
pears now to be the only point in
dispute. The opinion is general
that it cannot be any form of gol d
standard. The only alternative is
silver. In the current issue of the
National Review, published in Lon
don, the Rt Hon. Herbert G. Gibbs
recognized among the leading 6nan-
cial authorities of Great Britain, un
equivocally declares that the reopen
ing of the Indian mints to the free
coinage of silver is the only prac-
tical solution of the vexed problem.
He regrets that the recent proposal
of the United States and France was
not accepted, and adds:
India required par of exchange
with both gold-using and silver us
ing countries; and that was offered
them. India has been crying out for
years for high exchange; that, too,
was offered them. These things,
however, were all refused, because
the Indian government was con the
eve of securing gold Standard
After pointing out the utter i'm
possibility Of securing such a stand
ard in India, the writer continues.
What, therefore, would propose
is that India should return as soon
as possible to her old automatic
metallic standard and reopen the
mints to silver. She would then,
at least, have par of exchange with
one set of nations, viz, those that
use silver; she would, at least, be
free from monetary stringency
caused by artificial contraction of
the currency; and, above all, she
would be free from further govern
ment experiments in unsound
money.
What followed is very significant.
1t has been urged against free silver
coinage that the supply of the met
al is so large that it could uot poss-
IDLY be absorbed in coinage to an
extent that would make possible its
maintenance at par with gold.
Here is Mr.. Gibbs opinion:
| believe that there would be con-
siderable demand for silver for cur
rency purposes for India directly the
mints were opened, and that silver
would rise considerably; for there
are practically no stocks in the mar
ket, and even small demand
would raise it good deal. We can
also see by the existing monetary
stringency that when the rupee is
at ! shilling 4 pence, good deal
more money is required, so, if it fell, /,
more money still would be required,
and there would be greatly increased
demad for silver for coinage.
Blu, Mr.. Gibbs goes even futhur
than the mere opening of the Indian
mints. In order to support the
Indian coinage, he would adopt the
proposal suggested by the siz mon
ometallic members of the gold and
silver commissions of 1888, and by
Mr.. Goschen. This proposal was
that England should gradually with
draw the half sovereign, and should
issue in its place 10-shillings notes
based on silver. Under such coin
age, the writer concludes, it might
also happen" he adds, ,"that if the
British empire of its own motion con-
tributed practically all that France
and the United States desired, these
two nations would also Of there own
motion take steps to promote the use
of silver and maintain It's price.
Germany and other nations might
I i
pieces and increase the internal use
of silver"
Here, certainly, is encouragement
of the most substantial nature for
American bimetallists. The adop-
ton of Mr.. Gibbs suggestions is not
by any means an improbability, and
in such case the only variation from
the French-American proposal would
be the absence of an established
ratio-a matter of minor Importance
to be adjusted as circumstances
might require.-Ex.