New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-05-15
INDIAN FINANCE.
WITH PRACTICAL SUGGESTIONS FOR
CURRENCY REFORMERS IN AMERICA
INTERNATIONAL BIMETALLIsM
A WANING CAUSE

In the excitement Of war Americans are likely
10 lose sight Of the trend Of Indian finance since
the rejection Of the proposals Of the United
States and France for international action
Yet war Itself. with It's vas, financial outlay and
monetary disturbance. increases the importance
Of the final battle OF the standards which is to
be fought in the Far Eas, under conditions Of
unexampied difficulty and perplexity The
American people have much at stake in an
issue which will profoundly affect their own un-
settled monetary and currency systems The
Wolcott Commission would not have succeeded
IN existing the cooperation OF the French Gov
eminent in the recent campaign for nterna-
tonal bimetallism II there had not been rea-
sonabe assumption that England would assent
20 a new monetary conference in the interest
Of India When the Indian Government unex-
pecteGly advised agains: International action.
the work Of the Wocott Commission was at an
end. II India can be converted into gold
country. with silver 4 subsidiary coinage, BIZ
metasm Will be lost cause; Russia Austria
Hungary and other European countries will
complete the process Of currency REDEMPTION on
gold basis. and the United States Will be
forced TO choose between supporting the gold
standard Of the civilized world and sinking to
the silver level of China and Mexico. The es-
Establishment of a gold standard in India can
hardly fail 10 be a decisive victory for mono
metallism; and the governing class. with the
financial experts behind IT, is moving steadily
toward that goal
The Indian Government. In vetong the pro-
posals Of the Wolcott Commission last DC
tober offered this reason for the rejection
Of practical scheme Of international action:
I'VE believe that difficulties nearly
over and that we shall in the near future sue
coed In establishing a stable exchange al 16
he ~ +s-rrf rffc in
itiated in 1888" That policy involved the clos
ing OF the mnts to silver and the creation Of
scarcity rupee Intermediate in value between
gold and silver a money famine produced
for the sake OF obtaining more favorable rates
OF exchange IN the Governments own transac-
tions with London. II the rupee had been
par with silver in It's downward course the GOLD
renittances Of the Indian Government % Eng
land would have been heavily increased. That
Government has proAted IN this way by the
artificial value Of the rupee. and it has main
tanned by constant borrowing an approximately
stable rate % exchange incidentally the rates
OF interest have been raised 10 high level by
currency stringency merchants have been en-
barrassed In selling their bills. industries have
been sacrifice and trade has been wellnigh
paralyzed; but the Government has been en-
sbled to prolong its borrowing operations In
definitely and 20 force It's balances by means ~
an artificial rate % exchange.
TO ESTABLISH THE GOLD STANDARD.
A blue book Issued this week contains un-
rnstakable evidence that this policy Is 70 be
supplemented by further measures for contract
Ing the rupee circulation and thereby bringing
up its exchange valu, 20 16 pence. The finan-
cial experts Of the Indian Government profess
70 believe thai 10 great decrease In rupee cir
culation is required in order 10 effect this re-
suit They are confident that the conversion OF
"a crores Gen millions OF currency notes now
n circulation Into gold would suffice for the pur-
pose. but condemn this method needlessy
costly Their specific proposal is 70 melt down
existing rupees after providing a reserve OF
gold 70 take the place Of the silver Their ob-
3ect is 10 replace with gold certain mass of
r,,nees which will cease 70 exist as coin. They
VIII sell ten crores OF coined rupees the first
year and another ten crores the second year
bu, long before these amounts are ABSORBED
they anticipate that the rupee VIII be at 10
pence and the gold sovereign viii he IN use IN
The chief cities Of India and be recognized as
the standard coin OF the Empire The main
proposition is that Of securing reserve OF gold
and may be stated in their own words:
Our first step Is Obtain a reserve Of actual goa
coin, this We can only do W D1rro%hs ~ f.rs
nent should move Parliament 20 pass en- aci giving
he Secretary Of state power 70 DOiIO~ ny ~ :"
Ink gold standard in India Il is possible ina, the
whole Of this amount may not De required Dut w.
believe that the possession Of tie power TO push
efforts uniu our object 10 attained WI grtalY
enhance effect OF our FIRST more I'm ied opera
lions. Tn amount winch may DC itqulie4 ~ o'ug "a
the rupee can only DE determined BY experience,
and We have named the maximum 10 which DoT
rowing powers should DE taken an amount ~hc,h'
We may take g. Is certain.y sufficient and the n
terest which the revenues OF lrG!a can dEOTn 10
statute IS passed Your Lordship should nj once
borrow and ship to Iud. f5.Vo,yD In gold. The
soveregns would be placed By US In our reserve
treasures. and held rca.y for such use as events
may show 10 Ne cx?edient.
This is the proposal offered tentatively by the
indian Government for the consideration Of the
new Currency Committee appointed by taria-
ment The blue book contains alternative
pan known the Lindsay scheme. and numer
Gus other recommendations by Chambers or
Commerce and various trading and planting or
ganizations In India. There is no approach 10
agreement respecting the ways and means by
which stable rate OF exchange between India
and the United Kingdom can be established
and permanently maintained: but there IS a
clear recognition Oh every side OF the necessity
TOT Immediate action inasmuch es the indefinite
proiongation Of the existing conditions OF none
tery stringency. economic exhaustion and com
Hercia depression Is out OF the question
GOLD RESERVE REQUIRED
Inc Indian Government having rejected BIZ
"etaiiism on an international basis and not vent
us,ng TO face the alternative OF opening the
mants TO silver and making remittances to Lon