The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-08-10
GOLD STANDARD IN INDIA
Is Discussed by Director Roberts of
q. s. MINIS.

" D
Washington, Aug. Recommending
upon the Associated Press cable of the
report of the committee on the Indian
currency, placing India on the gold
basis, Director of the Mint Roberts said:
1.-THE report does little more than re-
affirm and declare the permanency Of
the policy adopted in 1898 when the
minis We're closed to the free coinage of
silver The minis were closed origi-
nally because the decline in silver had
become so great as to embarrass the
Indian government, which received its
revenue in silver and had to make a
large share of its disbursements in gold.
The government makes its renittances
to London by selling bills of exchange
on the London market, these being
bought by people who desire to make
the remittances to India. Before the
minis were closed the public could either
but by closing the government hoped to
force the purchase of the bills at a
higher rate.
Hard times followed in India attri-
buted by those who criticised the gov
eminent, to the closing Of the mints,
but attributed by the government to
the famine and other causes. There
was considerable agitation in favor of
reopening the miuts and the business
world was in no little uncertainty about
the future. It was considered highly
desirab BILE that the gOVernm ent'S future
policy should be definitely assured and
accordingly something over a year ago,
a committee of eleven was appointed
by the Indian officers in London to in
Vestigate the whole subject Inc com
mittee has published two volumes OF
testimony and now gives its own con-
illusions.
1T is unanimous In finding that the
minis should not be reopened to silver.
The committee says;
- Even apart from considerations at
fecting the government of India It IS
not in the interest of India that her
foreign commerce, over so per cent OF
which is with gold standard countries,
should be tempered with by the restor-
alton of silver mOnOmetallism.
THE committee promises the efforts
of the government to hold the value of
the rupee at 16 pence and hols the sale
of consuls at that figure to pc PROOF
that India already has the gold stand
ard It hesitates however, to recon-
ment the final step, viz: That the In
dian government shall give gold in ex-
change for the silver rupees 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 liability to find gold
at a moments notice to an amount
which cannot be defined beforehand,
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 govern
ment has no gold reserve, nor has II the
means to obtain a stock OF gold at
once 1t could only be done by the is
sue of bonds or installments through
taxation and it is not practicable to IN
crease the taxes of India to any consld-
cradle degree. The committee con-
cIudes that the requirement OF re-
serve NAV be left to the future ana
that the present silver currency OF In
dia may be maintained at fixed value
to gold by supplying such qualities OF
gold as are needed for foreign remit
tances. That, they say they regard as
q ar
In fact that is precisely the service
performed by. the gold reserve of the
United States. The Indian committee
refers to the example of the UMted
States It is recommended that the
Indian minis be opened to the unre-
stricted coinage of gold and that the
British sovereign may be made Iega1
tender upon the theory that gold VIII
dow in a. more money is needed and
that eventually a considerable share OF
the currency will thus come to be OF
gold. The significance OF the report Is
in the determination not to open the
minis The policy of India may now
be presumed to be settled"
Asked if there was any reason to ex-
pect such a movement of gold to 1ndla
as might disturb money markets in the
worlds centers, Mr.. Roberts replied:
There is not. India can not draw
anv more than she can pay for, and she
is not rich enough, or likely to develop
exports fast enough, to make her de-
mands serious. She has taken nine or
ten million dollars worth or Australian
gold this year. She can't possibly take
a sum that will absorb the increase of
this years gold production over last"
Does the final adoption of the gold
standard by India have any bearing
upon our foreign trader"
1T puts the wealth of producers of
the two countries on a common level"
replied Mr.. Roberts. land disposes of
the old argument that the Indian far
mer has an advantage over the Amer1-
can farmer, because he receives his pay
in a falling currency. Whatever intri-
eaeies there once were in the subject
have been cleared UP, for the Indian far
mer like the American farmer is now
paid by the gold standard. The alleged
advantage was an illusory one, for he
only held it while the currency contin-
ued to fall. and then only as he could
work it off on some uniformed or
helpless fellow countryman at a former
value. Furthermore, in the nature of
things, a currency must stop falling
sometime, when it becomes worthless,
if not sooner. This committee agrees
with the Indian government that the
interests of that country as a whole
demanded that the depreciation of its
money should cease and that its finan-
eial system should be linked to that of
the other important nations of the
world