Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1899-08-10
SILVER NOT SATISFACTORY
DECLINE IN ITS VALUE LED To Sc
RIoUs EMBARRASSMENT.
Free Coinage Did Not Hold Value Up
and It Has Been Found Neces-
sary TO Establish the
Gold Standard Per-
manently.


upon the Associated Press cable of the re-
port OF the committee on the Indian cur
rency, placing. India on the gold basis, Di-
rector Of the Mint Roberts said to-day:
The report does little more than reaf-
firm and declare the perInanency of the poll
Icy adopted in 1893, when the mints were
closed to the free coinage of silver The
mints were closed originally because the
decline in silver had become so great as to
embarrass the Indian government, which
received its revenues in silver and had to
make a large share Of its disbursements in
gold. The government makes its remit
tances TO London by selling bills of ex-
change on the London market, these being
bought by the people who desire to make
remittances TO India. Before the mints
were closed, the public could either buy
these council bills or send silver, but by
closing the mints the government hoped to
force the purchase of the bills at higher
rate.
Hard times followed in India, attributed
by those who criticised the government to
the closing of the mints, hut attributed
by the government to the famine and 9TH
er causes. There was considerable agi-
tation in favor of reopening the mints and
the business world was in no little uncer-
tainty about the future. 1t was considered
highly desirable that the governments fu-
ture policy should be definitely assured,
and, accordingly, something over year
ago, committee of eleven was appointed
by the Indian offices in London to inyesti-
gate the whole subject. The committee
has published two volumes of testim jny,
and now gives its own conclusions.
1T is unanimous in finding that the mints
should not be reopened TO silver. The COM
mittee says:
Even apart from the considerations af-
fecting the government of India, it is not
in the interest of India that her foreign
commerce, over 50 per cent of which is
with gold standard countries. should be
tampered with by the restoration of silver
monometallism.'
The committee pronouuces the efforts OF
the government to hold the value of the
rupee at 16 pence a success, and holds the
sale of council bills at that figure TO be
proof that India already has the gold
standard. It hesitates. however, to recon-
mend the final step. viz: That the Indian
government shall give gold in exchange for
the silver supees current They say that,
In their opinion, it is not necessary for the
government to bind itself to do this. 1t
would Impose on the government a liaSil-
ity to find gold at a moments notice TO an
amount which cannot be defined before
hand, and the liability is one which. in our
opinion, ought not to be accepted
This has been the puzzling question in
the Indian situation. The government has
no gold reserve, nor has it the means 10
obtain a. stock of gold at once. It could be
done by the issue of bonds, or, IN Install
ments, through taxation, and 1t is not prac-
ticable to increase taxes of India to any
considerable degree. The committee con-
cludes that the requirement of a reserve
I.
present silver, currency of India may be
maintained at fixed value to gold by
supplying such quantities of gold as are
needed for foreign rerhittanees.
The Indian committee refers to the ex-
ample of the United States. 1t is recon-
mended that the Indian mints be opened te
the unrestricted coinage of gold and that
the British sovereign be made legal
in as more money is needed and that
eventually, a considerable share Of the cur
rency will thus come to be of gold.
''The significance of the report Is In the
determination not to open the mints. Tho
policy of India may now be presumed to
be settled"
Asked II there was any reason to expec.
such a movement of gold to India as might
disturb money markets in the worlds cen.
ters Mr.. Roberts replied:
There is not. India cannot draw any
more than she can pay for end she is no,
rich enough, or likely to develop exports
She has taken $500 900 or SO 900, 900 worth
of Australian gold This year. She can,
possibly take a sum shat will equal the in.
crease of this years gold production over
last" ~ .a-
Does the final adoption of the gold
standard by India have any bearing upor
our foreign trade?"
''It puts the wealth producers of the two
countries on a common level" replied Mr.
Roberts, "and disposes of the old argument
that the Indian farmer has an advantage
over the American farmer, because he re.
ceives his pay in falling currency What.
ever intricacies there once were In the sub.
1ect have been cleared up, for the Indian
farmer, like the American farmer is nov
paid by the gold standard The alleged ad.
vantage was an ilusory one for he only
held Il while the currency continued to fall
and then only he could work it off or
some untnfermed or helpless fellow coun.
tryman at former value. Furthermore
In the nature Of things, currency mus
stop falling some time. when It becomes
worthless. If not sooner. This committee
agrees with the Indian government that tht
interests of that country as a whole de-
nnanded that the depreciation of its none,
should cease, and that its financial systen
should be linked to that of the other i'm
portant nations OF the world"