Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1899-08-18
SILVER NO FUTURE
6imefdIIiSm and the CLOSING
of Indian Minis.
The Commission Remarks Upon the
Apparent Ce. SafiOn of Agitation
Having for IFS Object Return TO
Double Standard.

Washington. Aug. 1.-THE an
nouncement that India would adol;:
the gold standard has attracted much
attenion in financial circles. The
| conclusions of the parliamentary re-
| port. are to some extent connected,
with the negotiations carried on some
months ago by Senator Wolcott and
others representing this country as TO
international bimetallism. The In
dian commission was made up of the
most influential Statesmen and finan-
ciers Of England. and the testimony
before them was given by such emf
neE't authorities as Lord ROthschild.
head of the great firm of RothschiId:
Lord Ardenham former governor of the
Bank of England. and practically ali
Of the students and scholars of eco
nomic questions in Great Britain. The
report first sets forth the origin and
present condition of the monetary sys-
tenn of India. and then says:
I'VE proceed to consider the QUes-
ton whether in the light of the six
years experience gained since 1898 it
is desirable to reverse the policy in
itiated in that year. and to reopen the
India m:Its to the unrestricted coinage
of silver. In our opinion any meas
ures for gradual re1pening would he
SO fully and Immediately discounted
as to defeat ihe precise objects for
which they are suggested. 1t is obIi-
Gus. moreover that the certain pros
pect of a heavy fall i'll the exchange
would at once drive capital from India
THE policy of opening the mi1.ts at
some future date 10 silver. sta,1ds on
a differenp footing when urged by
national agreement. and consider that
there is reasonable hope of such an
agreement within limited period
Such persons aim directly at a stable
exchange between India and the
United Kingdom. and advocate delay
only in order that an international
agreement may be reached.
with regard to this anticipation.
We corfne ourselves here to stating
that the negotiations of 1897 with
France and the United States of Amer
lea. having proved fruitless. TO fresh
proposals, so far as We are aware,
have been or are being made by any
of the governments concerned
we come next to the suggestion
that the presan system of closed
mints handicaps India in her indus
trial competition with countries OIL Il
silver standard. This aspect of the
question was considered by Lord Her
committee. who expressed
the opinion that even if we assume
the argument as to stimulus or
check TO production to be sound, the |
effect of each successive fall in ex-
change must be transitory. and could |
continue unil circumstances have
brought about the inevitable adjust
ment.
In this opinion we concur, and evil !
dence has been laid before Us which !
shows that prices and wages have
risen in China since silver has fallen I
in price and the local copper currency
mas appreciated il terms of silver.
To reopen the Indian mints to sill
ver without an international agree
menf5 would necessarily result, accord
ing to all past experience, in renewing
the instability of exchanges between
India and gold standard Countries 1t
is generally recognized that fiuctua-
tons of exchange constitute an OBJ
stacle to International 5rade. the
true interests of which are to lie
sought i'll stable monetary power of
exchange
The report then discusses the prin-
ciple of gold standard and says:
AT the present time, the practical
to silver monometaIlism is
gold standard. that is to say, gold as
-he measure of value in India. either
with Il gold curra ncy or Il god reserve
-Four -tifths of the foreign trade of
india is with gold standard countries
ind for this reason it is desirabl that
india Should have the same measure
# value as those countries.
a further and certainly not Il ESs
consideration for Il country
ike India is tnat an established gold (
standard is the simplest and most eff I
ective means of attracting capital. ;
For these reasons We conclude that :
teps should be taken to avoid all {
possibility of doubt rs to the deterIm- :
lation rot to revert to i silver stan {
ard, but to proceed with measures for
he effe1.tivn ea>t. I111lnrt Of u .rnIl