New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-04

is fraught with monetary disturbance and IL
not to be considered, The British Government
Is In danger OF making false step. and Is not
enlisting the confidence Of the City and the
country.
GOLD FOR INDIA.
If India could find its own gold there would
be no protests from the City. but this Is pre-
cisely what Its financial advisers insist cannot
be done. They recommend a gold loan OF $780,
100000 in round numbers. 10 be raised by IN
stalments OF $4,000 600 II the committee OF
investigation supports this proposal and the
India ONCE acts upon il. the City Will nave to
provide the gold and this cannot be done with
out tightening the money market. weakening
the reserves Of the Bank Of England and pro-
ducing monetary stringency. The City does not
enjoy the prospect which is opened by the cur
rency proposals of the Indian Government There
has been prolonged financial sringency In India
as the result Of the closure Of the mnts. and the
efforts of the Government there to impart an
artificial exchange value Of the rupee by virtue
Of scarcity: but that was long way on The
gold standard cannot he introduced In India
without serious sacrifices and inconvenience
in London; and monetary stringency here Is TO
be avoided at all hazards by the City. Theo-
retically the bankers are in favor or gold
standard for India, but practically they are OPP
posed to any measures which Will drain the gold
resources Of London. For this reason they are
ranging themselves as obstructionsts In their
memorial TO the India Office and the Treasury,
and discrediting an inquiry. which is the logical
outcome OF their resistance TO monetary
conferences and to international bimetallism
The monetary situation Of India meanwhile Is
constantly going from bad TO worse. and cur
rency reform is already an issue Of supreme I'M
portance which cannot be thrust aside because
the London bankers find 1t inconvenient 10 pro-
vide the gold required for a stable system.
year may be occupied with the inquiry which
Lord George Hamilton has ordered, and the
bankers and merchants Of the City VIII have
every opportunity for presenting financial plans
OF their own: but sooner or later the question
Of a gold standard will have to be taken up and
settled. Since the minis cannot be reopened 10
silver without losses in exchange, which the
Indian Government, with its own enormous re-
mittances to London. cannot face. and since BIZ
metallism international lines has been con-
demned as impraCticable, there can be only one
solution. and that is the gold standard. The
bankers themselves can suggest no alternative
They have forced upon the governing class In
India the necessity Of regarding the currency
question from a single point OF view-that OF
exchange in the sale Of Council drafts in Lon
don. With their enormous home charges to be
met by constant borrowing. the officials cannot
allow the exchange value Of the rupee 10 fall to
the silver basis. il would do If the mints
reopened. They are compelled 70 perse-
we're in their gold policy. and the British Gov
eminent will ultimately find II necessary TO
sanction measures OF some kind for the accumu-
lation of gold reserve. The bankers have set
the tune. and they will have 10 march to IL. al
though they now sulking in their offices and
protesting against hasty action. l. y. F.