New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-05-15

don with low rupee is forced to recommend a
gold standard. This is the policy which the
Currency Committee will have to consider. and
the inevitable corollary to it is a large initial
reserve Of gold which England will have TO pro-
vide. Few financial experts IN England will he
prepared to admit that maximum Of go
oO0O will suffice for the establishment II a
gold standard in India: but even that modest
and inadequate suggestion for a gold loan
appalls Lombard street whore it IS generally
conceded that the reserves in the Bank Of Eng
land are not - large as they ought 10 he. with
the present balance Of trade and enormous
volume OF credit Transactions. London is not in
a position To- provide the gold reserve required
FOR this tremendous currency experiment In
India
The Currency Committee which has been
named this week. is not likely to condemn the
policy recommended hy the financial advisers u
the Indian Government. The chairman is Sir
Henry Fowler. who was Secretary Of State for
India when the experiment " closing the mints
WAS introduced one Of his associates Is Sir
David Barbour who. Finance Minister Of
India was responsible for the creation OF the
scarcity rupee lie is bime,allist and has
explained that ne suggested the closing Of the
minis a counsel Of despair. preferrng the
policy Of international agreement Neither ex-
pert will be prepared 10 admit that the measure
adopted five years ago was biunder ~ the
first magnitude. Robert Campbell is on record
as q witness before Lord Herschelrs committee
in opposition to the scarcity rupee. and Robert
Chalmers testified before thu same body that Il
gold standard might be maintained without Il
gold reserve. Sir Alfred Dent Sir John Muir.
Sir Charles Crosthwaite, ". y Holland and tn"
remaining members arc practical fnanciers in
touch with the commercial bodies IN England
ard are likely to he influenced by tho prevail
Ing trend of opinion toward a single standard.
The committed is empowered - consider and
report upon the currency proposals ~ the In
dian Government. and 10 submit any Mpdihca-
lions or suggestions which IL may regard a.
cxpedient. II IS not authorized T. conduct an
inquiry respecting tn eXpedlency ~ reversing
the policy # 1893 and Lord George Hamilton.
who has selected the committee. has cinphat-
jcallv asserted that. while he IL the Oldest hi
unetallist IN the House. IL does not consider an
international arrangement within the range ~
possibility.
MUST TAKE ONE or TWO COURSES
II can hardly be expected that a committee
with several pronounced hinetallsts among its
members can unite in recommending without
reserve the adoption of the Indian Governments
scheme for the introduction Of gold standard :,
but 1t is safe to assume that the majority viii
favor that plan. Since the rejection Of the Vol
colt proposals. only two courses have been open
10 Anglo-Indian Nnancicfs. one IS 10 take the
back track and 10 reopen the Indian mlnis with
out international bime tallism. which they have
condemned az impractiCaDle. The other IL to
70 on with the artificial scarcity rupee and 10
adapt it 20 the requirements ~ q goll standard
Either the minis must be rcopencd 70 silver or
the gold must be provided from England FOR an
initial reserve. The single square mile Of the
city which has rejected international bimetal-
ism approves theoretically ~ the gold standard
for India bu, has strong pra cilcal objections 10
a policy which viii take a large supply - gold
out of England when IL cannot De spared But
the necessities Of the case sOon-r or later VIII
have 10 be faced. The pTeYaHlng opinion IN
financial London IL that the closing Of the mints
was a mistake. but that india has gone TOO Jar
10 turn back. and that Il cannot stand stil The
logic Of the situation Is that after an inquiry by
ne Currency Committee and a short period ~
hesitation the Indian Government VIII be au-
thorized to enter upon the gold policy. and Eng
land will have to provide a reserve with the
least possible disturbance to financial condi-
,lons and divide with her great dependency the
burden Il carrying the new monetary policy
into effect
REMOVING TIE MGNTs FROM THE PROBLEM
Sir lanes Wcsfland deserves credit at least
Tar consistency. He declined last September the
rr,posais Of The United states ana France for
international bIrneiallism. and declared that In
dia's beet policy In monetary matters was 10
INK her system indssOuby with thar Of Great
Drita'r lie u,v proposes a long step forward
-, ,yhich n gold standard may De Introduced.
,,l intir,afes that in2smuch a. il Is a matter OF
S,,, rial concern Parliament ought 10 enact a
iarro measure y subs tdIit!fl relief. The London
~nol.ra who pet!tioncd against a settlement OF
H. eiiyer question Oh international lines viii
-" 49, tue,ined in cXeri!ng themselves to defeat
,bts cod policy even II they do not approve 81
10 ,lan in ali details. AS they have professcd
.iJ ilIiate in the enormous advantages 10 be de-
,,.ed from the establishment II god standard
-, T,dta With q staple rate Of exchange al 1Gd
~ iii nov have an opportunity Of IettionlnG
~. Government 10 assist IN WORKING OUT tHIs
Iutton Of a serious financial propiem by meth
-, nhich they consider sound and rational.
ou fr,'. .rnericans with their own unsettled
- evstcrn may anticipate With confidence
49,, ,eor future Is the removal Of India from
80 c.,ra - bimeiallist controversy. Inc GOV
rn,oert there viii probably bec"lnr s'IcI 81
erhNie'e ~ went Of so 600 600 n year until
- 1Gd ratio Is firmly established ~ the
"a. ,ir,e II will be accumulaunS soId 10 Il
sam .,, ~ 500 900 coo IL that estimate be
Imtn,Iv large The silver In circulation VIII
sum ~ srti0cial value. as In France, where IL
nav i sreelv coined, yet remains legal ten
cah''o r.Dr. may be no gold IN circulation yet
oer' ~, currency system will be on gold
,s,s All these results VII! nave n uleS, peaI
Ia. mon the tendencies of America, cuiIrhc5
- ,.,s,seIon The main factor nl me p''ne' ai'Is'
disSu7 Tho indian mints-will be removed ana
sfional Arrangement foT reguiaiIns lne
al - - gold and silver VIII De u.terIy I'M
rei.,nah,s The American people VIII nave no
p.nrmediate course between s'iNei IN, -,
~, which will condemn them 20 .ne IT., ~. =,
rsins and Mexico, and the worio . p1'''S r.
single gold standard.