The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-08-11
Why the MINIS of India Are Closed
to Silver.
REPORT OF COMMITTEE
FEAR THAT CAPITAL WILL BE
DRIVEN OUT.
Cannot Reopen MINIS to the White
Metal Without There Is Nation
al Agreement-Such Would Cause
instability of Exchanges With
Gold Standard Countries.

Washington, Aug. 10.-In diplomatic
circles copies of the report just pre-
scented to the houses of parliament by
the committee which investigated the
currency of India have been received.
1t is on this report that Lord George
Hamilton, secretary of state for India.
has based his announcement within the
last few days that India will be on a
gold standard. This announcement has
attracted much attention in the United
States, and the conclusions are, more
over, to some extent connected with
the negotiations carried on some
months ago by Senator Walc0tt and
others, representing this country, as to
international bimetallism. This COM
mittee was made up of the most infiu-
entail statesmen and financiers of Eng
land. The report first sets forth the
origin and present condition of the
monetary system of India, and then
says:
I'VE proceed to consider the question
whether. in the light of the six years
experience gained since 1898, it is de-
sirable to reverse the policy initiated
in that year, and TO reopen the Indian
minis to the unrestricted coinage of sill
yer. In our opinion. any measures of
gradual reopening would be so fully
and Immediately discounted as to de-
feat the precise objects for which they
are intended. 1t is obvious, moreover,
that the certain prospect of a heavy
fall in coinage would at once drive cap
ital from India.
On Different Footing.
The policy of opening the minis at
some future date to silver stands on
different footing when urged by those
who look forward to the International
agreement, and consider that there is
hope of such an agreement
within a limited period. Such persons
aim directly at a stable exchange be-
tween India and the United Kingdom.
and advocate delay only in order that
an international agreement mays be
reached.
With regard to this anticipation we
confine ourselves here to stating that
the negotiations of 1897 with France
and the United States of America, hav-
ing proved fruitless, no fresh prospects,
so far as we are aware, have been or
are being made by any of the govern
nents concerned.
I'VE come next to the suggestion that
the present system of closed mints
India in her industrial COM
petition with countries on a silver
standard. This aspect of the question
vas considered by Lord HerschelTs
committee, who expressed the opinion
hat even if we assume the argument
rs to stimulus or check TO produc-
ion TO be sound, the effect of each sue
,essive fall in exchange must be tran
STORY, and could be continued when
circumstances have brought about the
Inevitable adjustment.
In this opinion we concur. and evil |
ience has been laid before US which |
shows that prices and wages have |
1Sen in China since silver has fallen |
n price and TIE local currency has ap- |
'reciated in terms of silver. To reopen |
he Indian minis to silver without an |
International agreement would unneces- ]
arlly result, according to all past ex- |
in renewing the instability of |
Exchanges between India and gold !
tandard countries. 1t is generally rec
that fluctuations of exchange |
onsttute an obstacle TO international |
rade, the true interests of which are
o be sought in stable monetary
lower of exchange"
Principle of Gold Standard.
The report then discusses the prin-
iple of a gold standard. and saws:
AT the present time the practical al
ernatlVe to silver monometallism is A
old standard. that is to say. gold as
he measure of value in India. either
nth gold currency or a gold re
erve
"Four-fifths of the foreign trade of
ndla is with gold standard countries.
nd Tor this reason it is desirable titat
ndia should have the same measure of
alue as those countries. rha change TO
gold basis has been presented u Us
Professor Marshall of Ca:nD~iIga. as
Ike movement toward bringing the !
aiiway gauge on the side branches of
ne worlds railways into unison with
he main lines
"A further and certainly not a less
Important consideration for a country
Ike India is that an established gold
-andard is the simplest and most ef-
ective means of attracting capital"
In conclusion. the report says: Fer
lese reasons. we conclude that steps
Mould be taken to avoid all possibility
doubt as TO the determination st TO
vert to single standard. bur 10 pro-
eed with measures for the effective
of gold standard"
I